Music Industry 2.0
A federal court denied a request to shut down Internet song-swapping services Grokster and Morpheus on Friday stating that they should not be shut down because they cannot control what is traded over their systems. Like a videocassette recorder, the software in question could be used for legitimate purposes as well as illicit ones, the judge said (Yahoo/Reuters).
Apple will today (Monday) start its bid to become the leading online music retailer with a fee-based service allowing songs to be downloaded for 99 cents. The new venture is backed by the five majors, and marks the latest industry effort to challenge the loss of revenue from the millions of fans who download music illegally on file-swapping services
(Yahoo/FT).
Owners of KaZaa, Verizon Communications have been ordered to disclose the identity of an alleged peer-to-peer pirate in a legal decision that could make it easier for the music industry to crack down on file swapping. The dispute is not about whether the RIAA will be able to force Verizon to reveal the identity of a suspected copyright infringer, but about what legal mechanism copyright holders may use (CNET).
Why the drop in CD sales? The RIAA points to Internet piracy, citing studies that show CD purchases are lower among file sharers. On the other hand, file-sharing companies deny this and point to studies that prove the opposite. But a more measured analysis reveals a factor that’s as simple as it is obvious: people are buying fewer CDs because they’re buying more DVDs (CNET).
While most acts go on the road in support of new albums, several Def Jam Records artists will launch a tour next month behind the release of a new video game (Sympatico/Billboard).
BMG has created the Global Marketing Group, a worldwide structure to support its labels, repertoire centers and operating companies. The move follows the realignment earlier this year of BMG and the recent integration of Zomba Music Group into the mix. The Global Marketing Group will be he headed by Tim Prescott, BMG’s Executive VP/Chief Marketing Officer, who reports directly to Chairman/CEO Rolf Schmidt-Holtz (Hits Daily Double).
EMI has cleared Europe for downloads, making available for sales online more than 140k tracks from over 3,000 artists. The new program will enable consumers to burn music, copy tracks to portable devices and purchase singles online as soon as songs are serviced to radio in advance of their commercial CD release (Hits Daily Double).
Musicindie have announced a groundbreaking new P2P pilot with the exclusive pre-release of two new tracks from UK independent Cooking Vinyl artist Richard Thompson on Kazaa Media Desktop. The move is part of an initiative by Musicindie, the body that undertakes licensing R&D for UK independent labels, to explore P2P music distribution (Mi2N).
Ric Ocasek has joined the Elektra as Senior VP of A&R, Sylvia Rhone, Chairman/CEO of Elektra has announced. ‘His ear for discovering and nurturing talent and his incredible rapport with artists has resulted in a host of career-making records.’ stated Ms. Rhone (Mi2N).
After great success in Finland, Sweden, Norway and Denmark, The Rasmus’ record company Playground Music Scandinavia has inked a licensing deal with a German Major label – MotorUrbanDefJam (under Universal Music) for the world outside of Scandinavia, Island, Baltic States, Russia and Italy. In Italy, The Rasmus is licensed to Edel Italy and in Russia it is licensed to Soyuz/Dance Paradise (playgroundmusic.com).