Music Business News Articles

News archive items listed by month below.

December 2005 News Updates

 

SPITZER TO INVESTIGATE DOWNLOAD PRICING IN THE USA 27/12/05
No New Year's cheers for the record industry as New York attorney-general Eliot Spitzer announces that he has launched an industry wide investigation into the pricing of digital music downloads to see whether or not the current structure breaches American anti-trust (anti-competition) laws, in particular Section 1 of the Sherman Act. The Times (24/12/05) reports that Warner Music has received a subpoena from Spizer's office and it is presumed that the other majors will also be targeted. The European Commission announced in March 2005 that it would investigate download pricing. In 2002 the (then) five majors have been targeted before for price fixing: Sony, BMG, EMI, Warners and Universal and three major record retailers reached a settlement resulting in a US £143 million. US District Judge D Brock Hornby sitting in the federal court approved the settlement of a lawsuit filed on behalf of millions of record club members who alleged they had been overcharged in a CD price-fixing conspiracy.  
See www.musiclawupdates.com

 

BRITTNEY TO SUE OVER SEX TAPE CLAIMS  22/12/05
Brittney Spears is to sue over claims in a magazine that she made a sex tape with husband Kevin Federline. The claims in celebrity gossip magazine US Weekly are fiercly contested by Spears. She is asking for $10 million in damages as well as punitive damages.

 

DARKNESS HEADLINE CONCERT TO FIGHT CLIMATE CHANGE 22/12/05
The Darkness, The Strokes and The Super Furry  Animals have been lined up to headline a concert at Cardiff's Millennium Stadium to pursuade people to fight back against climate change. The One Earth Concert will be on January 28th and will urge peole to switch to renewable energy sources. The US Government has recently announced that it expects carbon dioxide emmissions to increasxe by 45% in the next 20 years. The US is not a signatory to the Kyoto treaty which was designed to slow climate change.

 

PEOPLE AND PLACES  22/12/05
The UK's  Daily Telegraph names Guy Ruddle as its first 'Podcast editor'. Chris Evans is confirmed as the host for the 2006 BRIT Awards on 15th February and Chrysalis names Michael Connole as its new Finance Director replacing Nigel Butterfield. And good news in the Stefani-Rossdale camp. No Doubt's Gwen and ex-Bush frontman Gavin are expecting their nfirst sproglet. Now thats a lovely bit of Christmas cheer! 36 year old Gwen is due to give birth in June.

 

 

 

CRAZY FROG GETS £40,000 FINE

The Independent Committee for the Supervision of Standards of Telephone Information Services (Icstis is the UK regulator for the premium rate telecoms sector) has fined service provider MBlox £40,000 over the Crazy Frog ringtone. Some 338 customers complained to Icstis over the 'excessive' bills they received when they signed up for the mad-eyed amphibian's phone-tone. On securing the tone, they then found themselves signed up to a series of premium-rate reverse charge texts from Jamba that cost them up to £5 a week. Icstis argued that insufficient information was included in the adverts although agreed that there was no malicious or fraudulent intent. The 338 people who formally complained will be refunded and it is expected that thousands of others will follow their lead and seek their money back. The ringtone has generated an estimated £10M for MBlox and Jamba and the single of the tone reached number one in the UK singles charts, stopping Coldplay reaching the top of the charts. Britons now send 93 million texts each day according to the Mobile Data Association.

 

CHRISTMAS MUZAK DRIVES SHOP STAFF TO DISTRACTION 20/12/05
Shppers may find the odd rendition of White Christmas or Sir Cliff's 'Misteltoe and Wine' or even Slade's Merry Christmas uplifting and just the thing to get them into the 'Christmas spirit' but workers in shops and stores can find the endless looped music 'acoustic torture'. In the UK the RNID (Royal National Institute for the Deaf) estimates that some shops play Jingle Bells up to 300 in the runup to Christmas, reducing unfortunate staff to gibbering wrecks admindst claims that the repetitive plays amount to psychological torture . Two years ago in an effort to fight back the Austrian shopworkers union threatended stores with legal action under health and safety legislation. But faced with unyielding store-owners, union lawyers agreed to a voluntary code of practice limiting festive music to peak shopping hours... with limited success. Now Pipedown, a new pressure group, is campaigning for the UK government to legislate against unwanted muzak, be it in stores, hospitals, airports or swimming pools, claiming it raises the blood pressure and depresses the immune system. Bah, humbug. Talking of muzak - the race is on for the UK's christmas number one which looks like a run off between the quirky folky 'JCB song' from Nizlopi which hit number one this week, The Pussycat Dolls, Westlife with Diana Ross and ex-Shoe Shop Salesman Shayne Ward who won the X-factor. Who will win? Does anyone really care - except JCB drivers? Bah Humbug again.  But in a moment of rare audience sanity, VH1 viewers have voted the Pogues and Kirsty MacColl's 'Fairytale In New York'  as their favourite ever christmas song. But what about after the 300th play ....... will even this Fairytail turn sour? Well the sage and considered advice from the experts at the ILMC has to be  - all things in moderation - and if you believe that you will believe anything!! Happy Christmas!

 

DOHERTY ARRESTED AGAIN 20/12/05
Babyshambles and ex-Libertine Pete Doherty has been arrested again, this time in the early hours of Sunday morning. The car he was driving was stopped by police and BBC Radio 1 reported that Doherty and three other occupants then tried to leave the area but were followed and Doherty was arrested by police on suspicion of driving whilst over the prescribed limit (of alcohol) or driving under the influence of drugs. Substances found in the car were siezed and sent for examination. Doherty was bailed until February 2006

 

CALLS FOR CHAIRMAN TO RESIGN AT THE ENGLISH NATIONAL OPERA 17/12/05
Leading lights of the arts world have put their names to an open letter criticisng the chairman of the English National Opera, Martin Smith and calling for his resignation. Smith, an investment banker, has presided over the ENO in a period when it has lost its Chief Executive (Sean Doran who has just resigned), music director (Paul Daniel who left in June 2005) and artistic director (Nicholas Payne who left in 2002). The Times (17 December 2005) reports that the ENO is now facing a strike over working hours and pay alongside a slump in tickets ales.. The ENO has appointed internal candidates to the roles of CEO and artistic director without externally advertising the jobs to further outcry. Members of the House of Commons Culture Select Committee including MPs Adrain Sanders (LD), Nigel Evans (Con) and Derek Wayatt (Lab) have called for an enquiry. The ENO has received more than £150 million (E210 million) in state funding in the last decade.

 

FINE IMPOSED AS IGGY BREACHES SWISS NOISE LIMITS  17/12/05
Lucerne's Blue Balls Festivals have been fined £670 approx (US$1,150) after the headline peformance of Iggy & The Stooges exceeded the noise limit of 100 decibels. The level had been raised for the Festival from the usual city limit of 93 decibels. Officials in the Swiss city of Lucerne claim the band exceeded the maximum volume of 100 decibels by playing at 102.5 decibels.

 

TV SHOW SETS RECORD BUSINESS A CHALLENGE 17/12/05
The UK's leading TV talent show the X-factor has set SonyBMG a challenge by agreeing to allow the release of the winning act immediately after the 18th December live final. 750,000 pre-orders are believed to have been received. Each of the three finalists (Shayne Ward, Journey South and Andy Abraham) have recorded a version of Thats My Goal and the winner will pick up a £1 million (E1.4 million) record deal with Sony BMG. Sony will then have to rush the winning version of the single with CD pressing plants beginning the manufacturing process just one minute after the result of the final is announced at 22.00. Downloads of the winning version will be available from 22.15 that night. Sample discs will be at SonyBMG by 0.600 on Sunday 18th ZDecember, physical product should be at distribution centres by Monday 19th December, in shops by Tuesday 20th December and on sale in the shops by Wednesday 21st December. The Christmas number one will be annunced on the 25th December on BBC Radio 1

 

GUBBAY OFFERED MONEY IN 2003 TO CLOSE SAVOY OPERA 17/12/05
Raymond Gubbay has said to the Times that he was offered £250,000 (E350,000) in October 2003 to abort his plans to set up his Savoy Opera as a stand alone private company operating in London (at the Savoy Theatre) in competition to state subsidised companies such as the ENO at the London Coliseum and the Royal Opera House. The approach, from an unidentified man, came to nothing. Gubbay later closed the Savoy for financial reaons.

 

NEW UK IMMIGRATION RULES MAY CAUSE CHAOS 
Musicians wanting to perform in the UK may be hit by government plans to change the work permit system which are pushed through in 2006. Artists' permits are currently processed in the UK within a few days, but under the new plans they will be processed at British consulates abroad. The changes are being proposed in an attempt to clamp down on foreigners working in the UK illegally. While the Home Office insist they are still finalising the details and are "happy" to listen to concerns, some in the music industry fear it is too late. Their major concern is that the new system will make individual musicians responsible for obtaining their permits, rather than something UK-based companies can arrange on their behalf (and as a group) and that the changes and increased cost will put many musicians and record labels off, and may even lead to cancelled tours. The British Phonographic Industry (BPI), which represents the interests of UK record companies, said they are concerned about the plans. The Home Office has said that although the consultation period had closed, they would still listen to the points raised ahead of the publication of their response in February and that the plan was to introduce a simpler, clearer, selective scheme for immigration which will benefit of the UK economy,

 

MTV LAUNCH NEW DOWNLOAD SITE WHILST BRITISH TOP MUSIC USERS CHART
MTV has partnered with Microsoft to launch the Urge music download service. It is expected to debut early next year. Urge will be built into Microsoft's Windows Media Player and have 2M tracks on offer either as a la carte or as part of a subscription package. No details of pricing have been issued so it is not clear if MTV will compete aggressively on price or use its brand values and wide catalogue to break into what is now a very crowded market headed by Apple's iTunes. The service will not be Mac-compatible. And in the week that Apple announced that it had sold 100 million downlaods in Europe Motorola, has announced results of a survey which say that Brits top the chart when it comes to legally down,loading music in Europe. The UK spend an average of 75p per month (or buy approximately one iTune) three times that spent by the Germans, French and Italians. A quarter of Brits surveyed said that they owned a digital music player. And in another survey in the US,the Berkman Center for Internet & Society at Harvard Law School and Gartner Inc. have found that file-sharing encourages people to buy more music. It argues that the ability to make and share recommendations will drive sales and benefit the industry/artists

 

VERTIGO TOP OF THE MOUNTAIN
U2's Vertigo tour was the top-grossing tour of the year according to Boxscore. Across 90 shows, it grossed $260M and attracted 3M fans. Their Croke Park gig in Dublin was the biggest single draw of the year - attracting 247,000 fans and generating $21.1M. The Eagles had the second most successful show ($117M over 77 shows) followed by Neil Diamond ($71M): source www.billboard.com

 

COACHELLA LINES UP DEPECHE MODE AS HEADLINER
The seventh Coachella Valley Music & Arts Festival will return April 29th to 30th at Empire Polo Field in Indio, Calififornia  and the first night will be headlined by legendary electro-pop act Depeche Mode according to Billboard. In the meantime, the festival will be the subject of the two-hour retrospective documentary "Coachella," which will premiere Jan. 19 at Los Angeles' Orpheum Theatre and roll out Jan. 24 to additional U.S. theaters. Coachella" rounds up some of the most iconic performances from throughout the fest's history, stretching back to Morrissey at the inaugural 1999 show up through a 2005 clip of the Arcade Fire. In between is footage of such acts as Bjork, Radiohead, Iggy & the Stooges, the Red Hot Chili Peppers, Kool Keith and Beck, among many others. 

 

SMITHS LINE UP FOR REUNION
Smiths guitarist Johnny Marr and bassist Andy Rourke will perform together for the first time since the legendary UK act split up in 1987 at the benefit Manchester v. Cancer, to be held January 28th at the Manchester Evening News (MEN) Arena. Rourke is overseeing the lineup for the show, which will also feature New Order, Doves, Badly Drawn BoyStephen Fretwell and other acts to be announced. Rumors have circulated that former Smiths frontman Morrissey will be involved in the show but at present there's no indication he will participate. http://www.manchestervcancer.co.uk/home.asp 

 

QUO TOUR CANCELLED AS PARFITT FACES THROAT CANCER SCARE
Status Quo have cancelled the remainder of their UK tour after singer and guitarist Rick Parfitt was found to have a growth in his larynx. The band called a halt to the tour after the problem was found the day they were due to play to 3,000 fans at Plymouth's Pavilions venue. The decision was taken after Parfitt was seen by doctors at the Plymouths Nuffield Hospital on Thursday. Band manager Simon Porter said that regretfully all nine shows on the current sell-out UK tour have been cancelled. The band were due to appear in: Brighton, Birmingham, Harrogate, Manchester, Telford, Bournemouth, Wembley Arena, Glasgow, Aberdeen and Edinburgh. 

 

PRINCE SIGNS TO UNIVERSAL FOR NEW ALBUM
The Artist first known as Prince, the formerly known as Prince and know known as ... Prince ....  has inked a deal with Universal for the release of his next album, "3121." This album is the follow-up to Prince's 2004 studio set "Musicology," which was issued via a one-off deal with Sony's Columbia label. The album debuted at No. 3 on The Billboard 200.That release was supported by a lavishly praised tour which drew nearly 1.5 million people and grossed $90.2 million, according to Billboard Boxscore. Prince is expected to return to the road sometime next year.

 

QUEEN REACH NO 3 IN UK ALLTIME CHART OF CHARTS
Queen have have overtaken the Beatles to move into third place in thre chart of the most successful UK chart artists ever. Elvis Presley tops the chart with 2574 weeks in the British charts and Sir Cliff Richard is second with 1982 weeks. Queen roll up with 1755 weeks compared to The Beatles 1749. Madonna is fith with 1660 weeks, Big climers include Kylie up 13 places to 42 and the Stereophonics also up 13 places to 71. Eminen and Britney Spears were the only two new entries.

 

ALL TOMMORROW'S PARTIES SCHEDULE IN 'USA' DATES 
All Tommorrow's Parties have scheduled in two 'USA' weekenders which will be held on May 12th -14th and May 19th - 21st 2006, at the ATP festival UK home at Camber Sands in East Sussex, England. A different band will curate each day, with the Shins, Mudhoney, Sleater-Kinney, Devendra Banhart and the Yeah Yeah Yeahs all committed. Dinosaur Jr. is stepping in for Ween, who has pulled out of the festival for undisclosed "personal reasons." Says a post on the band's Web site, "We want to focus on finishing our new album before we do any more touring."  http://www.atpfestival.com/ 

 

ATTENTION KAZAA USERS IN AUSTRALIA - THE USE OF KAZAA IS NOT PERMITTED!!! 08/12/05
The many Australians who woke up this Tuesday morning and wanted to join the network of file sharers using Sharman Networks, Kazaa software were cordially greeted with the message "The download of the Kazaa Media Desktop by users in Australia is not permitted" writes Andrew Evans. At first sight this would appear to represent a triumph for the 30 Australian music labels follwing the Federal Court of Australia ruling in favour of in September finding that, pending an appeal, Kazaa was guilty of encouraging its users to infringe copyright laws. However, such a triumph is yet theirs. The court ordered a revision of the software, by November 5th, so as to encompass a keyword filtering system that would prevent users from accessing copyrighted material through the network. This deadline was extended to December 5th but since this date has now past, it is clear that rather than using such a filter, Sharman Networks has instead shut down the website that Internet users previously obtained the Kazaa software arguing that in doing so they are complying with the courts orders.

However on Tuesday the Music Industry Piracy Investigations (MIPI) pointed out that such a measure would only stop new users from attaining the software and did not deal with the problem of current users continual usage. While Sherman Networks have programmed pop-up warnings to users reading, "To comply with orders of the Federal Court of Australia... If you are Australian you must not use the Kazaa Media Desktop", it seems that the effect is to simply provide the aesthetics of compliance rather than the substance. The Record Labels, represented by the head of the Australian Recording Industry Association (ARIA) Stephen Peach, are said to view this move as skirting the court orders with Peach stating, "They were given the chance to do the right thing and they've ruined it. They cannot be trusted to even take the simplest steps towards complying with the court's orders and again have shown they intend to do nothing about the illegal activities occurring on a massive scale on their system." The Sharman Network appeal is due to start in February.

 

BILLBOARD HONOUR MARIAH, GREEN DAY AND 50 CENT 08/12/05
Green Day and 50 cent were the toast of Las Vegas last night (Dec. 6), as each nabbed six trophies at the 2005 Billboard Music Awards. 50 Cent, who was the top finalist with mentions in eight categories, was honored as artist of the year and took the album of the year prize for "The Massacre," while Green Day earned rock artist of the year and won rock song of the year for "Boulevard of Broken Dreams". Mariah Carey left the show with 5 gongs including femaLe R&B artist and Hot Song of the Year (We Belong Together). Tom Petty won Billboard's century Award whilst Kayne West won Artist Achievement Award.

 

SANCTUARY SEEKS REFINANCE 07/12/05
The UK's Sanctuary Music Group shares tumbled down to just 2.65p as it was announced that the Group is seeking a £100 million plus (E145 million) rights issue. The rights issue will dilute current shareholdings. The share price has collapsed 95% since the start of the year after four profit warnings and a failed takeover bid for the Group. At the end of October the Group admitted gthat its balance sheet showed net liabilities. The Group has instigated cost cutting plans and is selling non core assets.

 

LABELS AIM TO PLEASE WITH PODCASTING 06/12/05
AIM , the UK's Association for Independent Music Record Labels has said it will try and address the problem podcasting is causing. Copyright restrictions mean that almost all podcasts (internet deliveries of radio shows to subscribers) are stripped of the music content. OK if it is a chat show, bizarre if it is a music show. AIM's 900 members are now preparing to issue a licence allowing radio stations to include music in internet podcasts. The deals will still be subject to music publishers agreeing (the MCPS-PRS Alliance need to consent on behalf of songwriters and publishers) but AIM has said that it wants to 'kick start' the process. The BPI which represents the four majors in the UK (Warners, EMI, Universal, Sony BMG) has no firm policy as yet on podcasting.

 

DEADHEADS REGAIN NET ACCESS 06/12/05
For all of their illustrious career the Grateful Dead encouraged 'bootlegging' - the making of recordings of live shows, and even encouraged fans to swap their tapes. But when it came to the internet and downloads, the band seemed a little more conventional, ordering a free download site to stop offering Grateful Dead tracks. In response 5,200 fans signed a petition against the decision and called for all fans to stop buying mercahndise in protest and after what appears to be a heated internal debate the band has now relented and said that the not for profit Live Music Archive can continue its service.

 

BIG IMPROVEMENT IN WARNERS YEAR END FIGURES 05/12/05
Warner Music has issued figures for its first fiscal year under new management (after the Edgar Bronfman led buy out from Time Warner Inc.). The company has closed its losses from $137M to $30M. Part of the turnaround is attributed to big-name releases from the likes of Green Day and Eric Clapton. The company claims that the growth in digital revenues now offsets the decline in physical sales. Digital sales of $53M now make up 6% of the company's business. This is slightly ahead of recent figures from EMI (where digital makes up 4.9% of revenues) and Universal Music (5.3%).

Source: Five Eight magazine

 

COWELL AND FULLER SETTLE IN FORMAT WARS 05/12/05
Just as things were getting interesting in the TV format wars between 19 Management's and ex-Spice Girl manager Simon Fuller and record industry heavyweight, X-factor and Pop Idol judge Simon Cowell it has been reported that the parties had settled. In the UK a High Court appearance was eagerly anticipated after Fuller accused Cowell of copying the format of his Pop Idol show to create the X-factor. UK lawyers were wondering whether if Fuller succeeded then would the Australian owners of the first UK popstar talent search Popstars and Popstars the Rivals join the fray? The current law in the UK is based on a 1989 case ( Green v Broadcasting Corporation of New Zealand) which said that on the facts of that case there was no copyright in law in a television gameshow format.

However recent decisions in Holland and Brazil have suugested that this may now need revisiting. Cowell has also agreed to be a judge for the next five years on American Idol after agreeing terms with the Fox network. Still looking at TV formats and for those of you interested in where the next big live touring superstar will come from (only joking) there appear to be three star celebrity singing shows planned for the UK - Cilla Black is hosting a new ITV1 show called Soapstar Superstar - a singing competition for soap stars. Meanwhile a new BBC1 show called Just The Two Of Us will see celebrities learning and performing duets in a week. And back to that man again - Simon Cowell is launching a similar show on ITV called Star Duets.

 

SOUTH AFRICA'S LEADING OPERA STAR SHOT DEAD 01/12/05
Deon van der Walt , South Africa 's leading opera star, has been found shot dead at his home aged 47. His father, Charles (78), was found shot dead in a separate room with a single gunshot would to his temple. Police are investigating what appears to be a family dispute. Deon was the first South African to do the 'grand slam' of performing at all of La Scala in Milan, Covent Garden in London, The New York Met and the Vienna State Opera House.
Deon and his brother Marcel also ran a very successful award winning wine estate, Veenwouden, 35 miles from Cape Town.

 

WORRIES AT WEMBLEY STADIUM AS SUB-CONTRACTOR FORCED INTO ADMINISTRATION 01/12/05
The construction company behind London's new Wembley Stadium, Multiplex, has received notice that pipe work company SGD Engineering has called into the Administrators. The Guardian (01/12/05) says that the Stoke based specialist engineering company blamed Multiplex for the crisis after a contractual dispute allegedly left it £2 million out of pocket - something Multiplex refutes. Multiplex expects to hand over the Stadium on the 31st March 2006. SGD was fitting pipework for the 2618 toilets planned for the Stadium. The FA (football) cup final is scheduled for the 31st May and The Rolling Stones and Bon Jovi have dates booked at the Stadium for live shows.

 

SHADOWS DRUMMER TONY MEEHAN DIES 01/12/05
Tony Meehan has died in hospital aged 62 after an accident at his home. Meehan was the Shadows drummer alongside fellow members Hank Marvin, Bruce Welch and Jet Harris. Meehan contributed to hits like 'Apache' and 'Man of Mystery' before leaving to form his own bands and act as a record producer. he is survived by his wife Sue, five sons and two daughters.

 

STONES UNVEIL EUROPEAN DATES 01/12/05
The Rolling Stones have unveiled a string of 20 UK and European dates in 2006 including dates at the new Wembley Stadium in London (August 20th), in Glasgow (August 25th), Sheffield (August 27th) and Cardiff (August 29th). Tickets in the UK are being handled by Ticketmaster with priority booking for fan club and American Express cardholders.

 

THE REVOLVING DOOR - NEW FACES IN NEW PLACES 01/12/05
Thomas Kaurich is named as Head of EMI Classics UK with effect from January 2006 and at MTV Networks India names Amit Jain as the new MD.
The English National Opera faces a crisis after reports that artistic director and CEO, Sean Doran, has stepped down with immediate effect following reports of a clash with the ENO's vide-chairman, Vernon Ellis. Doran, who has been in the hot seat since 2003.

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November 2005

October 2005

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