1/23/09
Music News Bulletin - 23/01/09
"More MIDEM, and the boss of cross-industry trade body UK Music, Feargal Sharkey, often the consolatory voice in the room when the music industry feels it is being abused by government or the internet industry, delivered some fighting talk in his speech.
First the UK government. Despite Culture Secretary Andy Burnham putting pressure on the ISPs to take a more proactive role in combating online piracy, and more recently saying that the government were no longer completely against the idea of extending the sound recording copyright, Sharkey said British ministers should do more to help the music business.
Welcoming the French approach to online piracy (putting obligations on the ISPs to act - and to cut off file sharers - into law), and noting that the UK industry often relied on European legislation to protect label and artists' interests, he said: "Whether it's ensuring that a private copying exception is met with some sort of compensation mechanism, or term extension for sound recordings or simply protection of a creator's moral rights, why is it that UK creators are constantly having to seek support from Brussels and not on our own doorstep?." [CMUDaily]
Industry may start pushing for legislation on net-piracy policing as ISP negotiations falter
Whether it's led by UK Music or the BPI or another trade body, someone may need to step up their lobbying activity regarding making internet service providers take more responsibility for tackling online piracy.
As much previously reported, record label trade body the BPI and six ISPs last year signed a memorandum of understanding which saw the net firms commit send out warning letters to suspected file sharers as a way of preparing the ground for more detailed discussions on how the record companies and net firms could work together to combat piracy and collaborate on new digital music services that could be bundled into ISP's monthly subscriptions." [CMUDaily]
Illegal downloads don’t equate to lost sales, says U.S. judge
"A sort of interesting ruling in the US courts now which may have an impact on how content owners calculate their losses in online piracy cases.
The ruling comes from a criminal copyright action against Daniel Dove, who ran the Elite Torrents message board in 2004 and 2005, providing access to illegal sources of both music and movies. He's already been jailed for 18 months for his involvement in the infringing torrent group, and was ordered to pay a $20,000 fine.
However, two parties, the Recording Industry Association Of America and movie makers Lionsgate Entertainment, have also made claims for 'restitution'; basically they want to be compensated for the losses they claim they suffered as a result of Dove's torrent service (legally speaking, restitution is subtly different to compensation, but that's in essence what they want)." [CMUDaily]
Rough Trade distribution has MBO
"More indie distribution news for you, and Netherlands-based Rough Trade Distribution, linked back in the day to the London based record shop and label but long since a separate entity, has been bought out by its management." [CMUDaily]
Survey Finds ISPs Number One Choice Of Music Provider
"An international survey of more than 1300 music fans has found that the music industry is offering them the wrong kind of new music services. In the research conducted by The Leading Question and Music Ally in the UK, US and France, music fans overwhelmingly backed Internet Service Providers as their favoured music supplier when asked to choose amongst a variety of possible providers.
46% of the survey chose ISPs as their number one music service provider, compared to 10% preferring cable/satellite TV providers, 5% opting for mobile operators while a meagre 3% considered handset manufacturers best placed to deliver music to them. ISPs were also rated top choice provider for ‘unlimited’ music services, this despite mobile operators and handset manufacturers currently offering more of these services." [MusicAlly]
12/5/08
Music News Bulletin - 05/12/08
"U.K. independent labels trade body AIM has called an emergency meeting after independent distribution company Pinnacle Entertainment went into administration. Although calls at the company's HQ in Sidcup, Kent were not answered, accountancy firm BDO Stoy Hayward confirmed it had been appointed as the administrator today (Dec. 3). The move is roughly equivalent to Chapter 11 bankruptcy in the U.S. Following an initial review of the company, 94 staff have been made redundant.
Pinnacle claimed to distribute releases from more than 400 record labels, as well as DVDs and software. It handled releases by Dramatico, including Katie Melua, as well as Bella Union and One Little Indian. "The Katie Melua Collection" is one of the biggest current releases affected." [Billboard]
Pinnacle Collapse A 'Nightmare' For Indies
"U.K. independent labels' representatives have consulted a lawyer through trade body AIM after independent distribution company Pinnacle went into administration on Dec. 3, roughly equivalent to Chapter 11 bankruptcy in the U.S. Around 60 labels were represented at the meeting today (Dec. 4) at AIM's HQ in Chiswick, west London, along with authors' collecting society MCPS, iTunes and Pinnacle's digital management partner Consolidated Independent.
The mood was described as "very serious" by one attendee, although Cooking Vinyl founder and managing director Martin Goldschmidt tells Billboard.biz, "It's a horrible time but the meeting was very productive."
At least 300 physical release labels are affected and even more digital labels; U.S. acts affected include Sub Pop's Fleet Foxes, licensed to Bella Union in the U.K.
Label bosses consulted with barrister Philip Flower, a specialist in corporate insolvency. It has emerged that many labels are unhappy with the terms offered by the administrators BDO Stoy Hayward regarding the return of stock." [Billboard]
Pinnacle goes into administration
"Distributor Pinnacle has gone into administration, with the loss of 94 jobs. The company, which distributes labels such as Dramatico and One Little Indian, reportedly told staff the news this morning. Senior executives are believed to be in meetings this afternoon in an attempt to resolve the situation.
Staff are not answering phones at the company’s Sidcup headquarters and there is no indication on its website www.pinnacle-entertainment.co.uk. However, adminstrators Matthew Tait and David Gilbert at BDO Stoy Hayward confirmed the news this afternoon." [MusicWeek]
Amazon MP3 launches in the UK
"Amazon has soft launched its long-awaited MP3 store in the UK, offering MP3 downloads from all four of the majors and several independent labels at bargain prices. Amazon launched its MP3 store in the US late in 2007 and promised at Midem 2008 that it would roll this out globally by the end of the year.
The launch has been long rumoured, with early reports suggesting that it would launch in September. The site, which operates off the main Amazon.co.uk site, is competing on price, with albums such as Take That’s The Circus available for just £3. Hits such as Girls Alouds’ Promises are available at 59p. Tracks on the site are encoded using variable bit rates for maximum audio quality and smaller file sizes, aiming at an average of 256kbps." [MusicWeek]
Online seen claiming 41 pct share of U.S. music market
"Digital music sales account for 18 percent of the U.S. music market and that figure will grow to 41 percent in five years, Forrester Research said in a report released on Monday. The report titled "U.S. Music Forecast, 2008 to 2013" also forecast that 55 percent of U.S. online consumers will pay to download digital music in 2013.
JupiterResearch, a division of Massachusetts-based independent company Forrester Research, said in the report that growth in digital music sales will not compensate for declining CD sales, with the overall U.S. music market shrinking over the next five years from its current level of $10.2 billion to $9.8 billion.
The report also noted crossover between CD and digital music purchases. In a survey, researchers found that 64 percent of subscribers to digital music services and 57 percent of consumers who download music have bought a CD in a store in the past year.
The Forrester Research report comes as digital music sales have emerged as the main growth sector for the U.S. music industry. While online piracy has long accounted for the bulk of digital music downloads, the Forrester Research report noted that paying for music downloads is increasingly popular. The researchers also credited companies such as Amazon.com Inc with helping propel digital music sales by allowing consumers to buy digital music that can be transferred between different devices without restrictions." [Reuters]
Worst Industry Statement of 2008
"Seymour Stein, VP at Warner Music Group and founder of Sire Records, as quoted by the Globe and Mail: We blew it. The first major music labels were all phonograph manufacturers, but by the time the Beatles came along, most companies were no longer involved in the hardware. Had we remained in control of the hardware, we wouldn't be hurting as much as we are now. And the iPod would be ours.
This is a joke, right? I get his attempt at logic, but the argument is not only quite a stretch, it is a sad combination of wishful thinking and Monday morning quarterbacking. More realistic would be something like, "We should have got into management, ticketing, e-commerce and merchandise when we had the chance." Either way, such exercises are moot. No point talking about what could have been. Just worry about what is possible." [Coolfer]
11/26/08
Music News Bulletin - 26/11/08
EMI announces restructuring plans: The troubled music giant is to reveal major restructuring plans, including splitting its business into three distinct global units 7 Nov 2008
"Troubled music giant EMI will today announce major restructuring plans.
Warner Music avoids Q4 blues: Company reports profit increase of 20% Nov 25, 2008
Behind the music: Small is beautiful
Independent labels don't have a lot of advantages when competing with the big hitters, but their passion will ensure their survival
10/24/08
Music News Bulletin: 24/10/08
"Universal Music Group is teaming with Dell to give customers the option of adding pre-loaded MP3s from the label's catalog to new computers purchased from the company.The deal does not provide access to the full UMG catalog, but rather a collection of curated playlists organized by various themes - No. 1 songs, Rock Titans, Blues Masters, etc. - as well as music featured in films that Dell also offers as bundled content. A 50-song playlist for $25, and a 100-song playlist for $50, which works out to about half the cost per-track from music purchased online. All files will be DRM-free.
The pre-installed music bundles will be organized under a "Music" icon in Dell's system, which customer can then move to their preferred music management software as they like. UMG says it plans to expand the number and themes of the playlists, as well as update the songs added to each, on a regular basis." [Billboard]
Microsoft celebrates antipiracy day
"Microsoft plans on Tuesday to announce "Global Anti-Piracy Day," an effort to gain attention for the steps the company undertakes in order to thwart those who would profit from illegitimate software. As part of the event, Microsoft is highlighting recent antipiracy efforts in 49 countries, ranging from the filing of lawsuits in the U.S. to a seminar for journalists in Pakistan.
It's the kind of thing that Microsoft does all the time, although the company is aiming for some added ink by grouping together so many actions at once.
"One of the things we want to illustrate with this announcement is the diverse nature of the work," associate general counsel David Finn said in an interview from Singapore" [CNet]
Baidu launches legitimate music channel
"BEIJING - Baidu has partnered with seven record companies to launch a music-streaming channel in an attempt to better combat illegal downloading.
According to Chinese reports, the channel, called New Song Debut, legally pairs Baidu with labels including EMI Music, Emperor Entertainment Group and Rock Records & Tapes to offer albums from nine Chinese artists for streaming.
This comes nearly a year after Beijing courts ruled that Baidu’s music search - which linked to sites that allowed users to illegally download music - was not classified as copyright infringement.
The ruling cleared the Chinese search engine of lawsuits issued in 2005 by seven international record labels, including EMI and Warner Music." [BrandRepublic]
MySpace Music adds more indies
"MySpace Music has signed a deal with leading indie distributor IODA, adding more than 1m tracks from independent labels to the service. The deal, announced this morning, adds labels such as Cooking Vinyl, Demon Music Group, Fat Cat Records and Cherry Red to MySpace Music, which already has content from all four major labels and aggregator The Orchard.
However, Merlin, which represents leading indie players such as Beggars Group and Domino, has still yet to agree a deal with MySpace after a very public war of words, and the announcement is likely to put more pressure on its CEO Charles Caldas MySpace co-founder and CEO Chris DeWolfe re-affirms the company’s commitment to indie music, saying, “The independent music community has been a cornerstone of MySpace Music. We remain fully committed to building an economy for artists and providing them with the necessary tools to further their careers and better connect with music fans everywhere." [MusicWeek]
MySpace Music Adds IODA
"MySpace Music added thousands of independent labels to its service today (Oct. 23) through a new deal with independent digital distributor IODA. Details of the agreement were not disclosed. MySpace Music has drawn criticism from some in the indie community for striking equity deals with major labels while not offering the same terms to indies.
The service opened Sept. 25 as a joint venture partially owned by the four major record labels, and Sony/ATV Music Publishing. The partners in the joint venture will profit not only from a cut of the same ad and sales revenue, but also in the underlying revenue the venture receives, even from content contributed by other labels.
The service has deals in place with indie digital distributor the Orchard, as well as the indie distribution arms of the four major labels. Merlin, the indie global rights organization that spoke out publicly about what they perceived as unfair treatment by MySpace Music, still has not signed a deal. Merlin says its represents labels that have a 9% share of the U.S. digital recorded music market." [Billboard]
TuneCore, iLike Bundle Indie Services
"TuneCore and iLike have teamed up to offer independent and unsigned artists a package deal on both distributing and promoting their music. The partnership is more of a bundled product than it is a new service, as both companies offer their core services independently. But together, the two hope to present a more complete message than they could marketing their services separately.
TuneCore brings to the table a wide digital distribution platform, which can post clients' music to all the major digital retailers and subscriptions services. Once the music is available, iLike then lets users promote it through full-song streaming applications on social networks like Facebook, Bebo and other channels. Each time their music is played, artists get a royalty from the corresponding service hosting the file.
The partnership between the two firms lets artists sign up for both services at the same time, rather than requiring separate agreements." [Billboard]
Facebook Music Redux
"Facebook doesn't seem ready to give up its music-service aspirations just yet. After first approaching the major labels with the idea back in March of this year, the company is now reportedly reaching out to existing streaming services as part of an outsourcing strategy.
The New York Post, citing unnamed sources, reports that Rhapsody, Imeem, iLike and Lala are all potential targets.
Tapping an existing provider to turnkey its music strategy would allow Facebook to avoid striking its own licensing deals with labels, not to mention give the winning service a huge marketing boost by promoting it via the massive Facebook platform." [Billboard]
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