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Digital Media Association Rejects SoundExchange's "Stay Of Execution"

New regulations to go into effect on July 15th require each webcasters to pay a $500 minimum advance on royalties "per station or channel".  Do the math and you'll see that a service like Pandora or Last.FM who create thousands of custom streams would easily be put out of business.  Yesterday in a press release SoundExchange offered a cap of $2500 against future royalties no matter how many streams a broadcaster offered.

But in a scathing response, Jonathan Potter, Executive Director of the Digital Media Association said, "DiMA would agree to a $2,500 per-service cap for the entire term of the CRB ruling (through 2010), but not the partial-offer presented to us in writing, which would terminate in 2008. Any offer that doesn't cover the full term is simply a stay of execution for Internet radio."

"The looming 2009 billion-dollar threat is destabilizing and inhibits investment and growth. DiMA, like thousands of artists and millions of consumers, wants a solution that promotes long-term industry growth," he continued. "A billion-dollar "minimum fee" is equally absurd in 2006, 2007, 2008, 2009 or 2010.  It should be eliminated - period. DiMA is disappointed to have to issue this statement; we would prefer to resume negotiating important issues directly with our counterparts rather than through press releases."

SoundExchange Offers Cap That May Help Pandora, Last.FM and Others

Soundexchange In a press release today Sound Exchange stated that via the Digital Media Association it has offered internet broadcasting a $2500 cap on the required $500 per channel advances. This offers appears to be of greatest benefit to custom radio services like Last.FM, Pandora and Slacker on whom listeners create tens of thousands of individualized channels.

The offer does not address many other broadcaster concerns including much higher per song payments.  SoundExchange did claim that it was still negotiating with smaller and non-profit broadcasters for a  lower rate structure. (pdf of press release)

EMI And SNOCAP Enable Sale Of DRM Free Tracks Across Viral Platforms

EMI has reached an agreement with SNOCAP to enable purchase of DRM-free higher-quality MP3s by EMIEmi artists through artist websites, social networking pages and fan blogs.   EMI will also place SNOCAP MyStores – digital storefronts that work on nearly any website – on the web pages of hundreds of its artist sites.

Beginning this week, music from a broad range of EMI Music artists will be available via MyStores for Snocap$1.30 per track including 30 Seconds to Mars, The Almost, Ryland Angel, The Bird and The Bee, KORN (one example of how EMI is using MyStore can be found here if you page down to the left), Joe Lovano, Dean Martin, MIMs, Relient K, Saosin, TobyMac and Yellowcard with additional artists being added in coming weeks.  EMI’s Blue Note Records has also placed a store on its website with tracks from both catalog and current artists.

Using SNOCAP MyStores’ “Spread the word” feature, fans, music bloggers and other third party sites will also have the ability to place SNOCAP MyStores from their favorite artists on their own websites.

Generic_headphone_computer EMI is smart to harness the viral nature of the web and to enable music purchases wherever the potential customer may be spending time online. But the higher price, which may enable EMI to keep a larger share of each transaction than they get on iTunes, will be a deterrant for many consumers almost encouraging them to purchase or even "steal" the track elsewhere.  And other solutions are also available for labels and artists wanting to harness viral exposure and purchase without a higher price including Sonific's SongSpot widget.

UPDATE: The Hometracked blog has a great comparison chart and reviews of various viral sales widgets and what they

Edgar Says WMG's Sales Decline Is A Good Thing...

Edgar_bronfman_sims_2 "This decline is steeper than we expected, but in some ways it means we'll get to the bottom faster, and after that there's growth," WMG head Edgar Bronfman said during a discussion on CNBC.   

His carfully planned solution that somehow will take months if not years to impliment?  "We're going to be putting out video and ringtones and ringback tones, then connecting them to blogs and ticketing opportunities when the artist goes on tour, merchandising, you name it".

A Peek Inside The Offices Of The New Music Business

Ever wonder what the offices of some of the most innovative Music 2.0 companies look like?  Do theyLasfm_office spend those venture capital dollars frugally or do they want impressive digs to attract cool partners?

Paul Lamere of Sun Microsystems helps get you beyond the receptionist in a photo series on his Duke Listens blog. Would you guess this set-up is at Amazon, Last.FM or The Hype Machine?  Find out all this and more here.

New Music Business Briefing: Cellfish, Meebo, IODA France & Much More

Lg55 >>> Cellfish is a social network and portal that lets users play, share and store music and videos between PCs and their cell. The company is offering free digital lockers that synchronize media and contacts over-the-air. (press release) Take THAT iPhone! And check out the link to the Didiom cell app. at the bottom of this section.

>>> A number of larger labels, acts and social networking web sites are embracing Meebo's instant chat rooms that allow participants to share content across web sites and platforms. (Billboard) If wide adoption continues this could almost be the ultimate viral tool.

>>> Capital Music Group has set up a lounge for fan and band interaction (and sales) in virtual world There.com. (DMW)

>>> IODA has teamed with Mondomix Media to launch IODA France. (press release)

Cds_color >>> Wholesaler/rackjobber Handleman lost $37.5 million on sales of $268.5 million in the quarter ending April 28. That brings the total loss for the year to $53.4 million on revenues of $1.3 billion. That compares with a profit of $13.6 million in the previous year. (Billboard.biz) In the UK retailer HMV's profits were down 73%. (Times UK)

>>> The New Orleans' Cutting Edge Music Conference will be held August 23-26. (more)

Mouse >> WORTHY CLICK: Didiom – a downloadable mobile music marketplace for smartphones offers a free mobile application that works on a variety of smartphones sold by all the major carriers in the U.S.  Full-track downloads (form Naxos and other indie labels for now) are delivered over the air (D2C) from multiple existing digital music providers in Europe, Canada and the U.S.

HipHop News From ProHipHop

From ProHipHop:

>>> Candie's announces that its fall campaign will be drawn from their styling for Fergie's Big Girls Don't Cry video.

>>> As a member of the Black Eyed Peas, Fergie is also appearing in commercials for Doritos that are part of a Multi-Year Pepsi-Doritos/Black Eyed Peas Campaign.
>>> Michael Eric Dyson gets marketing support from Jay-Z and Nas who write the intro and outro, respectively, for his latest book, Know What I Mean?: Reflections on Hip Hop.

>>> Dr. Benjamin Chavis makes his first deal for H3 Enterprises and it's with Pop N Go!

>>> Upcoming mostly straight-to-dvd film releases include Bone Thugs-N-Harmony's feature flick I Tried and the documentaries Respond to Sound II, Wu-Tang Revealed and Tupac Revelation.
>>> ProHipHop adds JumpOff.TV's Hip Hop Newscast, a weekly videocast of hip hop news presented in alternate weeks by Letitia SD and Sasha Solette, available each Monday.

EMI May Still Be In Play

Emi "...a source close to Warner Music Group said that as of late yesterday afternoon the rival music company was still debating whether to trump Terra Firma's offer or wait until after the private-equity firm closes its acquisition with EMI to negotiate a deal to buy EMI's recorded music division."

"And sources said former EMI executive Jim Fifield is still scrambling to secure the necessary financing to lob in an offer after private-equity firm Corvus Capital unexpectedly backed out at the last minute..."
- New York Post

Burnlounge Dodges The Bullet

BurnLounge has come to an agreement with the Federal Trade Commission based on its recent decision to Burnlounge_logoeliminate the network marketing portion of its business.

”This is the first time in recent history that any company has emerged from such charges by the FTC and survived entirely intact,” claimed D.J. Poyfair, a partner from Shughart Thomson & Burnlounge Kilroy and lead outside counsel for BurnLounge.

BurnLounge anticipates a formal statement from the Federal Government in the next couple of days regarding the company’s former business model. Poyfair noted that, “The interaction with the FTC has been professional and fair and has led BurnLounge to make the decision to simplify its model.”

But as we reported earlier this week, with Burnlounge's members receiving none of the originally promised financial benefits; it seems that only the company's executives are celebrating.

MySpace TV Launches

MySpace is chasing YouTube with the launch today of a separate video, MySpace TV, that will feature both Myspace user-generated and other content that can be viewed without an account on MySpace.

In addition to user-generated videos, the site will highlight videos and "Minisodes" of vintage sitcoms from Sony and shows and from NBC Universal and Fox. Each MySpace member's page will  link to a dedicated page on MySpace TV, where all of the videos they have uploaded will be viewable thus providing bands music marketers with the opportunity to create free custom video "channels".

RoyaltyShare Acquires UK's Musicalc

Royalty_share RoyaltyShare, a provider of digital royalty services, has acquired Musicalc, a UK-based provider of music royalty accounting software.  With the acquisition, RoyaltyShare expands its European presence and adds royalty processing software and services for music publishers.

The acquisition expands RoyaltyShare's customer base to include a number of leading European record labels and music publishers as well as providing key staff to form a European operation.

New Music Business Briefing: Net Radio Hearings Today, Guitar Center Grabbed, SonyBMG Gets Russian & Much More

Savenetradiobolt300x78 >>> A compendium of coverage of Tuesday's internet radio "Day Of Silence" protest and a preview today's House Committee Hearing on stopping the rate hike which would cripple may broadcasters from RAIN.

>>> $20M a year indie label Eagle Rock is jumping from RED to Fontana for distribution.

>>> Guitar Center which recently made an investment in D.I.Y. download distributor TuneCore has been bought by Bain Capital for $2.1 Billion. (Billboard.biz)

>>> Universal Republic has added to its radio promo staff.(FMQB)Sonybmg

>>> Sony BMG has formed a new online business called Digital Access with Russian industrial group Access Industries and major local record labels Soyuz and Nikitin. (Reuters)

>>> Jay Frank moves from VP Music at Yahoo to CMT as Senior VP to head all of its music initiatives including a substantial digital presence. Iphone_2

>>>Vodaphone may grab the iPhone for Europe.

>>> Digital Music Group has signed three new digital distribution pacts with indies Joyful Noise, Mush and Clockwize. (press release)

Mouse_3 >>> WORTHY CLICK: Artistshousemusic.org is a non-profit site filled with great info and advice for the D.I.Y. and indie musician.

Coalition of Independent Music Stores Top 200 for Week Ending 06-24-07

Cims Pos.  ARTIST   |   TITLE

Read the entire CIMS indie Top 200 after the jump.

Continue reading "Coalition of Independent Music Stores Top 200 for Week Ending 06-24-07" »

Why The iPhone Is Not Big News For The Music Industry

Anticipation of the iPhone launch has grown to a feverish pitch including glowing reviews from influentialIphone Wall Street Journal tech writer William Mossberg and the NY Times.

But three major hurdles will keep the iPhone from having a major effect on music sales.  First is price At $500-$600, the iPhone is out of reach for most consumers particularly younger music fans.  Second is availability.  With only AT&T carrying the phones for the foreseeable future many will avoid the hassle of switching carriers.

Applelogo_2 Third and most important is that Apple's iPhone does not support over the air downloads.  Modern consumers want what they want when and where they want it; and that is particularly true of those who carry music enabled cell phones.  At 99 cents music can be an impulse buy; but not if you have to get home and hook up to your PC to get it.

The iPhone is elegant and even revolutionary technology, but it's not yet disruptive technology. There's a big difference.

Take your own video tour of the iPhone here.

New Music Business Briefing: "Silence" A Success, RealPlayer First Look, Sanctuary Shuts Promo & More

Dayofsilence_07 >>> Yesterday's "Day Of Silence" protest at internet radio seems to have been a success with thousands of broadcasters participating and servers and Congressional phone lines jammed with traffic.  (RAIN)

Real >>> A first look at the new RealPlayer 11 and its video ripping capabilities. (ars)  This reviewer loved it and you can find out for yourself by downloading a beta of the player here.

>>> Troubled indie Sanctuary is shutting its entire promo department. (Billboard)

>>> Groove Mobile will deliver an over the air music download service that does not incur extra data charges to Vodafone UK. Sony BMG has signed up for the experiment. (press release)

>>> A new technology would enable song purchase direct from any digital radio. (BusinessWeelPhonography)

>>> NPR profiled Archeophone Records, a label dedicated to preserving and re-releasing old recordings from the 1880's to 1920's. (story and audio)

>>> UK bands are increasingly just releasing digital singles and forgoing the album format.  (The Gaurdian) Will the trend lead to more sales or even less consumer to band loyalty?

Mouse >>> A WORTHY CLICK: SnapFM.com lets you listen into local radio stations live via the net.


Help Wanted: Koch Seeks Coordinator Mobile Distribution

Help_wanted Here's another help wanted posted as part of our free service to readers. If you've got a a music related job opening at your company, please email us the details and we'll post it for free. For previous help wanted posts click here.

Tomorrow: Help wanted inside a major label digital department.

Minimum 1 year mobile experience a big plus
Love of music! Interest in multiple musical genres
Awareness of emerging technologies, mobile trends and industry tools
Strong computer and organizational skills; great attention to detail
Ability to handle multiple projects at once in fast-paced environment
Ability to meet deadlines while maintaining quality standards
More after the jump.


Continue reading "Help Wanted: Koch Seeks Coordinator Mobile Distribution" »

Sonific Songspot Widget Adds 125K Songs To Library

Sonific Sonific has added 125,000 new songs to its library so that SongSpot widget users can choose from 200.000 licensed tracks to easily generate the code for a music player and paste it into their pages or blogs to stream the song free. Sonific's goal is to take music widgets to the next level by making songs available to all users on all platforms, anywhere.

The newly expanded catalog now includes the works of over 41.000 record labels and artists, and over 65.000 albums. The new additions come from a myriad of licensing deals including IRIS, IODA, DRA/DMGI, CDBaby, Big Fish, Cooking Vinyl, Uploader, Nettwerk, and V2 Records. (press release after the jump)

Continue reading "Sonific Songspot Widget Adds 125K Songs To Library" »

Majors Steal Indie Moneymaker And Get It Wrong Again

Cds_color Forbes online takes a interesting look at how several major labels are creating new imprints to release new CD's by classic artists. (Forbes)

Indies like Koch have been making money this for years, and while the major's are now copying the idea; they don't seem to have learned anything about indie frugality.

Sony BMG's Burgandy classic imprint has 24 employees to work 2-3 new releases a year.

Next idea...

Internet Radio Goes Silent Today

Hundreds of large and small internet broadcasters organized by SaveNetRadio.org will not broadcast today as a "Day Of Silence" to protest a scheduled major increase in royalty rates that they say will put most stations out of business. KCRW, Pandora, Live365, Yahoo, Real, MTV, SomaFM, Radio Paradise, AcuRadio Saveinternetradioblack_3 are all among those streams silent today.

But CBS owned Last.fm, AOL Radio and Clear Channel online are still on the air.

On their blog (via Hypebot reader Nick) Last.FM said it was staying on the air because it "did not want to punish listeners for our problems." It;s a surprising move that could see backlash from the service's tech savvy early users. In fact, here's a general Last.fm email address if you want to let them know what you think. Or leave your comments below.

More importantly, today is a great day to call your Congressman and let him know what your think. You can find instructions and more details on the issue and today's protest here.

New Music Business Briefing: Qtrax Inks All Majors, Mobile Music On Edge, TuneCore Writes Big Check & More.

Qtrax_2 >>> Ad supported music P2P Qtrax has signed deals with all four major labels and plans to launch in October with a catalog of 20-30 million songs or 4 to 6 times more songs than iTunes. (NY Post)

Iphone >>> Survey says Apple fans not music fans are the ones who are buying the iPhone which launches this week. (PC)

>>> Jupiter's David Card blogs on jump starting mobile music in the U.S.

Money >>> TuneCore which enables indie musicians to get onto major download services with a low flat fee paid cut $331K last month. Bands using the service have earned 100% of $1.7 million since payments began in May, 2006. TuneCore's top three digital download stores for April are iTunes, Napster and eMusic while its top earner was comedian Liam Sullivan as Kelly for his YouTube sensation "Shoes."

>>> Harry Fox and INgrooves have inked a direct music licensing deal. (Billboard)

>>> An amazing 88 indie labels are based  in Seattle. (Seattlepi via Daily Swarm)

Riaa >>> A exonerated fan is suing the RIAA for malicious prosecution. (ars)

>>> DMC joined Aerosmith on stage in the UK for an encore of "Walk ThisPaulmccartney Way"(NME)

>>> Paul McCartney will pay a surprise concert in LA's Ameoba Record store Wednesday. (Reuters)

EXCLUSIVE: Burnlounge Not Offering Refunds To Retailers

With all of the FTC charges, turmoil and changes at Burnlouge, we wondered how "reatilers" that had de paid dearly (often $500 and up) for expensive entry into the previous multi-level marketing system would be compensated under the new affiliate system. A Burnlounge spokesperson answered our inquiry:

Burnlounge_logo "All retailers who purchased the Exclusive or VIP product packages retain all of the products and services they received, but the Mogul program and Mogul Team Bonuses have been discontinued.

"All existing paid members in BurnLounge become BurnLounge Basic retailers and receive a subscription to our Business Management Software (BMS). In addition, during this transitionBurnlounge we are waiving all renewal and monthly fees for existing retailers until December 31, 2007."

"Currently, our terms and conditions state that complete refunds are not available after 3 days from the purchase date. In light of this transition, we are reviewing our refund policies but we have not made any changes at this time."

Thanks for the clarity Burnlounge, but it appears that if someone doesn't want to participate in your completely new revenue model, so far they're out of luck.

"We Need Wall Street Out Of The Music Business"

Cd_many "...We need Wall Street out of the music business and return to the days of pioneers and believers, people who take measured, calculated risks to support real artists over long periods of time – not a bunch of bean-counters who pressure and bribe artists to put out crappy records to meet goals for the fiscal year."

"These people are already out there – they’re called MANAGERS, and they are the future of our business. It’s no coincidence that the White Stripes and Shins are managed by the same team. It’s no coincidence that the Chili Peppers and Metallica are managed by the same team...even Kobe Bryant needs a Phil Jackson." - Scott Perry, New Music Tip Sheet

That says it all.

iTunes Has Surpassed Amazon As #3 Music Retailer In U.S.


Click on image to enlarge.

Reaching #3 is quite a milestone for iTunes particularly since a year ago the download store was #5 behind target.  And fr many indie labels who are not carried in the big box stores Apple must clearly be #1.

The numbers may be in part do to an uptick in sales caused by new DRM free tracks; and you can expect the rankings to shift again after Amazon adds downloads.

New Music Business Briefing: Gaming To Edge Music, Judge Slaps RIAA, Kork Uncorked & More

>>> A new PriceWaterhouse report says that the video gaming industry will soon surpass the size of the must industry in the US.  (Ars Technica) What does this say about us?
>>> An RIAA request for the identities of downloaders has been denied as a NM judge says that the trade group must do more to respect individual rights. (InfoWeek)

>>> A look at DiscRevolt's program of cards that let bands sell downloads at the merch table. (Reuters)

>>> Could indie rock save the symphony? (NY Times)

Reverbnation_logo >>>ReverbNation has cut a deal with free online publisher Freewebs to include the  ReverbNation Music Player widget in its offerings. (DBlog)

>>> A Billboard interview with the head of the indie booking agency Kork. (Billboard.biz)

Sonific >>> Mashable lists its top 12 Best Music Social Networks. (here) Its an incomplete list Last_fm missing ReverbNation and others. How many of these sites are you and your bands working with?

Hypebot's New Music Business Week In Review

Clearchannel >>> Hypebot revealed that Clear Channel Radio's FCC mandated indie artist program requires artists to waive all rights and royalties.

>>> In reaction to an FTC probe, music download service Burnlounge has dropped is CEO and moved from multi-level marketing for a new affiliate approach.

>>> Study says digital revenue will surpass CD sales in 3 years.

Dayofsilence_07 >>> Hundreds of large and small webcasters will shut down on Tuesday June 26th for a day of silence to protest pending higher royalty rates.

>>> WMG has combined Rykodisc and Cordless digital label. Hypebot hears that next Reprise will be folded into Warners.

>>> V2 Records inks with Peter Gabriel's We7 free ad supported download service.Youtube

>>> YouTube goes international with nine country specific sites.

>>>  XM grabs full Live Earth coverage.

>>> A look at non-refundable ticket fees and how it effects fans when shows are canceled.

Help_wanted >>> Don't miss our new free music industry job board.  Several great new job listing will be posted earlier next week.

ConcertsInYour Home.com Turns One

Acoustic_guitar_4 Concertsinyourhome.com is run by touring artist Fran Snyder promoting house concerts, a growing trend where live music is performed in the living rooms of music fans.

Using the website, which just turned one year old, "hosts" find artists who enjoy the format; and artists seek prospective hosts to schedule dates in areas they intend to tour. Nearly 10,000 people visit the site each month. In it's first year, CIYH signed up more than 200 concert hosts in 48 states and provinces plus two more in the U.K. The site also features more than 300 artists.