EU Events Monitor - 15/12/08

International Music Summit 2009
“The International Music Summit (IMS) is set to return to Ibiza on May 27-29th 2009 after swiftly establishing itself as one of the most talked about music conferences of the year. Last year’s hugely successful inaugural summit brought together 300 of the most influential players at the cutting edge of the electronic music industry, marking the successful arrival of the key business and networking event in the dance music calendar.” [RecordOfTheDay]

MIDEM’S Publishing Summit
“MIDEM, with the International Confederation of Music Publishers (ICMP), and media partners MUSIC CONFIDENTIAL and the Music Publishers Assn.’s IMPACT, are presenting the first International Publishing Summit on Tuesday, Jan. 20, at MIDEM in Cannes.” [MusicConfidential]

Music News Bulletin - 15/12/08

Chrysalis Halts Takeover Talks
“British music company Chrysalis Plc has terminated all talks related to a possible offer for the company, but says it continues to evaluate other opportunities. Shares of the company were down 12% or 7.75 pence (11.6 cents) at 57.25 pence (85.6 cents) this afternoon.

On Sept. 17, Chrysalis said it had received very tentative approaches from a number of parties "suggesting a variety of collaborative transactions, including a possible offer for the company". The company now confirmed it was no longer deemed to be in an "offer period."” [BillBoard]

Warner expand Northern Europe Indie Distribution
“And now news of expansion in the distribution sector - because it does happen on occasion. Warner Music's independent label distribution division, the Alternative Distribution Alliance, has launched a new Nordic operation providing digital and physical distribution services for indie labels in Norway, Sweden, Finland and Denmark.

The new division will be run by Jesper Thorsson, formerly of Swedish indie the Bonnier Amigo Music Group, who told reporters: "ADA Nordic has been created specifically to offer the best service and support to the region's diverse, dynamic community of indie labels. We will provide our partners and their outstanding artists with a host of new opportunities via our powerful distribution footprint, strong sales philosophy and commitment to assist in long-term artist development".” [CMUDaily]

[PIAS] UK DVD extends service
“[PIAS] UK DVD will refine its service from January 2009 to enable its labels to benefit from an improved product management, marketing and sales offering.[PIAS] UK DVD will continue to represent all labels currently on its roster, but will also offer an enhanced label management and marketing service. In addition, Lace Digital Media Sales (LDMS), the DVD sales specialists, will be employed as the sales agency for [PIAS] UK DVD distributed releases.” [RecordOfTheDay]

Music sales defy the crunch
“The doom and gloom surrounding the economy was given short shrift by record buyers last week, with sales topping the equivalent 2007 levels for the second week in a row and Take That’s new album, The Circus making a huge debut. Overcoming the fact that - like many of last week’s new releases - it isn’t available in Woolworths, The Circus by Take That nevertheless scorches to sensational first week sales of 432,490 to earn the Mancunian quartet its fifth number one, while simultaneously eclipsing the band’s own previous best first-week sales and setting a new 2008 benchmark.

Selling for as little as £5.88 on CD (Asda) and £3 as a download (Amazon) – both the lowest prices ever for a number one album in those formats - The Circus was released two years to the week after Take That’s comeback album Beautiful World, which opened at number one on sales of 168,954. Beautiful World subsequently sold 443,070 copies on its fourth week in the chart to secure the second highest one week sale by any act in the 21st century, behind the 464,471 copies that Coldplay’s X&Y sold on its first week in 2003.” [MusicWeek]

Rumor: Apple's iTunes going DRM-free starting Tuesday
“Apple is believed to be on the verge of an end-of-year push that would start by finally offering unprotected iTunes Store music from all major labels and would switch a special post-holiday campaign giving away music and videos to Europeans.

A report from last week brought to AppleInsider's attention by French technology site ElectronLibre asserts that it's now "clear" Apple will spark new interest in its music store by removing DRM from tracks published by Sony, Universal and Warner on December 9th.” [AppleInsider]

Music News Bulletin - 15/12/08

Distributor EUK Winds Down, 700 Jobs Cut
"Entertainment wholesale distributor EUK has failed to attract a buyer and the business will now be wound down by the administrators. EUK, which was part of Woolworths Group, will continue to operate with a reduced workforce of 375 employees. Seven hundred employees were made redundant today (Dec. 12) and efforts to sell the business as a going concern will be scaled down.

EUK was placed in administration - roughly equivalent to Chapter 11 bankruptcy protection in the U.S. - on Nov. 27 along with Woolworths' retail business. The 800-plus stores launched a closing down sale yesterday (Dec. 12). EUK's customers include entertainment retailer Zavvi and mass merchants Sainsbury and Asda as well as Woolworths. However, stores were forced to seek alternative supplies when EUK failed to provide key titles by Take That and Britney Spears on Dec. 1." [BillBoard]

EUK to be wound down
"Administrators are to wind down EUK after Deloitte failed to find a buyer for the distributor. A skeleton staff of 375 employees will stay on at EUK to help with the process of winding down but the move means the immediate loss of 700 jobs.

Staff were told this morning that Deloitte had failed to find a buyer for EUK, after an interested party pulled out earlier in the week. Dan Butters, joint administrator and reorganisation services partner at Deloitte, says, “Regrettably, despite our continued efforts, we have been unable to identify a suitable buyer for the business. Whilst we will continue to consider offers for the sale of the business as a going concern, we will now focus on realising value from the company’s assets." [MusicWeek]

ERA calls for calm
"The Entertainment Retailers Association has called on labels to support music retail in the wake of the crisis at Woolworths/EUK and the ongoing problems of Zavvi.

Administrator Deloitte said last Friday that it was winding down EUK, after failing to find a buyer, while Woolworths’ stores embarked last week on a whirlwind “closing-down” sale. Meanwhile, Zavvi was forced to deny stories that its creditors had called in an emergency restructuring team.

ERA, which represents retailers of music, video, DVD and computer games, is warning that unless suppliers continue to trade on normal credit terms with the retailers caught up in these difficult situations, they could create further difficulties in the market." [MusicWeek]

AIM Lawyers Cancel Pinnacle Contracts
“Independent labels' trade body AIM's lawyers have written to the administrators of Pinnacle terminating dozens of labels' contracts with the distributor.

The independent distributor based in Sidcup, Kent went into administration - roughly equivalent to Chapter 11 bankruptcy in the U.S. - on Dec. 3. AIM held an emergency meeting at is west London HQ yesterday for labels affected.

A letter has now been sent on behalf of 92 labels to the administrators BDO Stoy Hayward. The letter states that the 92 labels are terminating their agreements with Pinnacle and asks for confirmation that the labels can collect their stock from the premises.” [BillBoard]

Pinnacle Administration
“Administrators were appointed on Wednesday 3rd December in respect of Pinnacle, one of the UK’s oldest and largest independent distributors. An emergency meeting was held at AIM (The Association of Independent Music), and we have appointed Martyn Bailey from Forbes Anderson Free and barrister Philip Flower to take appropriate action.

A letter has been sent today on behalf of 92 labels to the administrators BDO Stoy Hayward terminating their agreements with Pinnacle and asking for confirmation from the administrators that the labels can collect their stock from the premises.” [RecordOfTheDay]

EU Public Affairs Monitor - 15/12/08

EIB gets an extra €30bn for infrastructure projects
"Funds will be directed primarily towards into new member states. The European Investment Bank (EIB) will spend an extra €30 billion on projects over the next two years following an agreement at last week's meeting of EU finance minister to increase the bank's capital.

The bank's reserves were increased from €67bn to €232bn to allow continued funding of current projects and financing of future projects. The immediate effect will be extra money during 2009-10 for the bank's main project areas." [EuropeanVoice]

US Sues Sony Music Over Children's Online Privacy
"Sony Music Entertainment was sued on Wednesday by the U.S. government, which claimed the music company violated federal rules aimed at protecting the online privacy of children. Sony Music improperly accepted registrations on its music Web sites from users who were under 13, without obtaining consent from their parents, according to the lawsuit filed in U.S. District Court in Manhattan." [BillBoard]

Canadian Copyright Board Raises Tax
"The Canadian Copyright Board has announced it will raise the tax on blank compact discs to 29¢ (US$0.23), a 38% increase. Previously the tariff on blank recordable CDs was 21¢ (US$0.1679).

The tariff is collected on behalf of the Canadian Private Copying Collective, an organization formed in 1999 and created to collect money that compensates musicians and stakeholders for having their music copied by individuals. The decision leaves the rate for audio cassettes at 24¢
The board says there were two reasons for the increase.

“First, increased mechanical licence royalties, coupled with the elimination of container deductions and free goods allowances in the calculation of the performers' and makers' remuneration, greatly add to our estimation of the total remuneration per prerecorded CD," the board said in a report. "Second, the use of compression technology raises from 15 to 18.4 the average number of tracks copied on a blank CD used to copy music."" [BillBoard]

EU Public Affairs Monitor - 15/12/08

UK plays term numbers game
"A 70-year copyright term is a possibility as UK offers alternative to EC’s 95 years
Europe’s delicately-balanced debate on copyright term is about to be blown out of the water, with the UK Government now poised to tell member states that it is prepared to see an extension to 70 years.

The UK, one of Europe’s biggest music producers, has steadfastly opposed the Charlie McCreevy-sponsored Directive to increase copyright term. While Germany, France and other states have broadly supported the Internal Markets Commissioner’s proposal to extend copyright term from 50 to 95 years, the UK has stuck to the findings of the 2006 Gowers Review, which did not recommend extension.

However, that position – and Gowers’ – was blown apart last Thursday when Culture Secretary Andy Burnham told a conference that he is now working with Department for Innovation Universities and Skills Secretary of state John Denham to “consider the arguments for an extension of copyright term for performers from the current 50 years. An extension to match more closely a performer’s expected lifetime, perhaps something like 70 years”. Senior executives now expect the Government to formally tell the European Council about this monumental U-turn early in the New Year. And that will undoubtedly radically shift the way the debate is progressing." [MusicWeek]

Copyright extension is out of tune with reality
"Politicians often do and say silly things when they come into contact with celebrities.
So it was last Thursday when a star-struck Andy Burnham, Britain's secretary of state for Culture, Media and Sport, showed up for a speech and photo-opportunity with the former lead singer of the Undertones, a punk-pop combo of the 1970s. In addition to the usual pleasantries about Britain's creative industries, Mr Burnham set out a novel argument about the law of copyright protecting musicians' work.

There was, he said, "a moral case" for performers - who often do their best recorded work in their 20s and 30s - to benefit from it throughout their lifetime. The government would therefore consider extending copyright for recordings to 70 years from the present 50." [FT]

Copyright law 'could be extended'
"Culture minister Andy Burnham has said the government has changed its mind on allowing performers to make money from their music for 70 years. Performers currently lose the copyright to their recordings after 50 years. "It's only right that someone who created or contributed to something of real value gets to benefit for the full course of their life," he said. Sir Cliff Richard and Roger Daltrey were among those who have campaigned for copyright to be extended." [BBC]

UK ignores logic, backs 20-year music copyright extension
"After a UK government-led commission said that the current 50-year term for musical copyrights was fine, and the government last year publicly agreed that there was no need to extend the term, culture minister Andy Burnham yesterday made the logical follow-up announcement that yes, the government would now push for a 20-year extension on copyright. Turns out, it's the moral thing to do." [ArsTechnica]

EU Parliament Monitor - 15/12/08

Briefing - 15-18 December 2008 - Strasbourg plenary session
[Europa]

The Week Ahead 15-21 December 2008: Plenary Session in Strasbourg
[Europa]

Lisbon deal could change size of European Parliament
"French proposal would result in a Parliament with 754 MEPs from 2010; deal also outlines means of managing transition to new form of presidency. Part of an emerging deal triggered by efforts to convince the Irish to approve the Treaty of Lisbon by October 2009 is a plan that would leave the European Parliament with fewer MEPs than it currently has but more than currently envisaged in the Lisbon treaty.

EU leaders are today discussing the offer of a set of guarantees that it hopes will help the Irish government convince its electorate to adopt the reform treaty, but the most likely timeline for a referendum – by October 2009 – would mean that the European Parliament elections in June would be held under rules set out in the Treaty of Nice. Those stipulate that the number of MEPs should be cut from the current 785 to 736. If the Lisbon treaty were in force by then, the assembly would have 751 members." [EuropeanVoice]

EU Council Monitor - 15/12/08

December European Council
"The European Council on 11 and 12 December 2008 approved a European Economic Recovery Plan, equivalent to about 1,5 % of the GDP of the European Union (a figure amounting to around EUR 200 billion). The plan provides a common framework for the efforts made by Member States and by the European Union, with a view to ensuring consistency and maximising effectiveness.

The European Council also reached agreement on the energy/climate change package which should enable this package to be finalised with the European Parliament by the end of the year. This decisive breakthrough will enable the European Union to honour the ambitious commitments entered into in this area in 2007 to maintain its leading role in the search for an ambitious and comprehensive global agreement at Copenhagen next year.

The European Council demonstrated its intent, through concrete decisions, to give new impetus to the European Security and Defence Policy in order to meet the new security challenges.
Lastly, the European Council discussed the factors designed to respond to the concerns expressed during the Irish referendum and established an approach to enable the Treaty of Lisbon to come into force before the end of 2009." [Europa]

France to give account of presidency to Parliament
"Working-time directive and budget will feature on an agenda dominated by a review of France's presidency of the EU and of the EU summit. The European Parliament is meeting for its last plenary session of the year and the four-day session, from 15 to 18 December, will have a distinct end-of-year feel, with the French providing a review of their presidency of the EU.

On 16 December, French President Nicolas Sarkozy will present to MEPs an overall review of the French presidency as well as the specific results of the EU summit of 11-12 December, focusing on the economy, the climate-change package, and the deal struck in a bid to convince the Irish to adopt the Treaty of Lisbon.

Accounts of the French presidency will be presented to the Parliament's Economic Committee on 15 December by Finance Minister Christine Lagarde and, on 16 December, to the Constitutional Affairs Committee by Foreign Minister Bernard Kouchner. Both ministers will essentially provide a run-down of the developments in their policy fields agreed during the French presidency." [EuropeanVoice]

EU Commission Education and Training Culture and Youth - 15/12/08

Culture: the first Asia-Europe Meeting (ASEM) Seminar on Cultural Diversity 15-16 December 2008
"The European Commission and the Vietnamese authorities are jointly organising an ASEM Seminar "Preserving and promoting the diversity of cultural expressions: sharing Asian and European experiences", which takes place in Hanoi, Vietnam on 15-16 December 2008. The aim of this event is to gather reflections on how to preserve and promote the diversity of cultural expressions, while sharing the rich Asian and European experiences in this field." [Europa]

Culture Programme Conference "Culture in Motion" 12 December 2008
"The first Conference on the EU's flagship funding programme in the area of culture, the Culture Programme 2007 – 2013, took place on Friday, 12 December. The Conference presented past and on-going project results from the current and previous EU Culture Programmes. The aim of the event was to enable an exchange of experience and good practices between cultural operators and programme beneficiaries." [Europa]

EU Commission Internal Market - 15/12/08

Speech by Commissioner McCreevy at Creators Conference organised by UK Music
11 December 2008
"Ladies and Gentlemen, It is well known that there is no place I like better than to be among innovators, entrepreneurs and business people. I usually address people involved in the more main stream industries – manufacturers of goods and suppliers of services. And while the entertainment business is far more glamorous than manufacturing widgets, at the end of the day it's all about making a living and being paid for your creativity and innovation. So it is a great pleasure for me to be here this morning to speak to such an illustrious group of artists and creators. And I would like to take this opportunity to explain why I, the Commissioner for the Internal Market – usually associated with big banks and other large financial industries – launched a proposal to obtain 'a better deal for performers'.

First and foremost, I consider copyright and the music industry to be just as important as any other part of my portfolio – not only in terms of the economic and cultural benefits it brings to the European Union, but perhaps even more importantly because of the entertainment and feel good factor music brings to our daily lives." [Europa]

McCreevy tells industry to sort out performer fund
"The success of copyright term extension could hinge on how quickly the industry agrees to divvy up the performer fund proposed by Charlie McCreevy in his Directive. The EC Internal Market commissioner, who proposed extending copyright from 50 to 95 years, in February also proposed a fund should be set aside for session musicians.

In the proposal he said that the performers would get 20% of gross revenue generated in the extended term. However, various sectors of the industry are also keen that featured artists benefit from the fund and there have been talks between the BPI, Musicians’ Union and Music Managers Forum to resolve this issue." [MusicWeek]

Music News Bulletin - 13/12/08

For the fans, by the fans...are fan driven private concerts the next big movement? December 8, 2008
"There are many entrepreneurs who are working on the next frontier of filtering great music to the world through technology. The industry is currently awaiting the release of the 'silver bullet' technology that can dissect good from great music and the relativity of that music by user group and then geographic preference. While this is bound to be on the horizon there has to be a means that every world class musician can develop a sustainable business making great music by bonding with their true fans.

Why Private Concerts? Private concerts started when music was first on the scene back in the days the Kings and Queens utilized their free time bringing in the top musicians from their town to perform private concerts for them and their friends. The best musicians back in the 1700's would be summoned to the castles to play for a group of elite socialites that the only reason to come to the castle, other then to fufil the request from the King, was to listen to the best music in that given region. After these private concerts, these musicians where considered royalty by the guests (fans) and continued to be considered, and paid, as the top entertainment of those times." [MusicThinkTank]

Live music as accessible as water...next hyper growth market?
"In the multi-billion dollar paid entertainment marketplace, live music currently makes up only 2% of total spending. In today's world of economic challenge, the entertainment pie is not going to get any bigger and it will most likely shrink. For one segment to grow, it has to take dollars away from other segments of the entertainment pie. Movies are the top magnet for entertainment dollars, for every $1 spent on live music, $7.60 is spent on trips to movie theatres. Artists should consider fan-driven-private-concerts to grow their slice of the entertainment pie."
[MusicThinkTank]

The 3 dimensions of the music Long Tail December 13, 2008
"So we're all familiar with The Long Tail, right? The idea that the internet facilitates a massive number of low selling, low impact products/services/entities to exist because of the very low cost of having a presence, which when combined make up a very significant chunk of the market.

In music it's been the shift from hundreds of artists selling millions of records to millions of artists selling hundreds of records. Or downloads. Normally, everything in the long tail is grouped together as the low-sales stuff, whether that's things that once sold a shed-load of copies but now have very little commercial traction (back catalogue material) or artists that are producing current, vital work but selling in smaller numbers." [MusicThinkTank]