Music Business News Articles

News archive items listed by month below (click here).

August 2006 News Updates

ANOTHER TICKET SWAP SITE LAUNCHES 29/08/06
Hot on the heels of Viagogo which launched last week for sports fans to officially swap tickets, comes news of another new swap site, stoptout.com which was launched by fan Gary Taylor at the end of July. Mr Taylor had problems trying to get hold of a Radiohead ticket at face value. Sellers sell their tickets at face value for free on stoptout, the buyer pays 10% admin charge which is capped at £5.00 and includes VAT and this is used to keep the site going and pays for security on the site which is regularly checked to prevent multiple membership and blocks touts from entering the system. More than 1000 people have signed up for the site which will initially feature sports tickets, firstly for cricket, The Department of Culture Media and Sport said they 'welcomed' the initiatives. The re-sale of any ticket with a premium (except for a football ticket) is not a criminal offence in the UK although the UK Government has said it will introduce legislation if an industry solution to touting is not forthcoming. The UK's Concert Promoters Association has also said it will set up an official swapping site for pop concert tickets and of course www.scarletmist.com has been doing this 'ethically' for some time! For details on Stoptout contact info@stoptout.com

ILLEGAL RAVE ENDS IN VIOLENCE 29/08/06
In scenes which harked back to the Acid House raves of ten years ago in the UK, over 200 police were needed to break up an illegal party on farmland in Essex. Initial attempts by Essex Police to peacefully disperse the crowd met with what police say was 'unprecedented and ferocious violence' and a police car was set ablaze. However revellers also complained of police violence and 'batterings'. It took police six hours to clear the site and nine police officers were injured. At one stage the police blocked a half mile stretch of the M11 motorway to prevent further revellers joining the gathering. 35 people were arrested. The rave allegedly had a number of music stages powered by generatorsd, several tents and a central dome. UK police now have extensive powers under the Criminal Justice and Public Order Act  (CJPOA) of 1994 which the Conservative government passed after perceive problems with raves in the eraly ninties. This gave the police extended powers to remove people from raves, prevent travel to suspected raves and also the power to seize vehicles and equipment. Until recently the Act had hardly been used as the illegal party secene seemed to have died a natural death. in light of recent press comments that a numb er of UK Festivals (particulalry the V Festival ) were 'profiteering' and overcharging fans it will be interesting to see if the illegal rave culture regains a foothold in the UK. On the same weekend as the Essex rave, two police officers were injured in Gloucestershire and a number of people arrested when police broke up a small illegal party in a private business park and in Heston, Cornwall, police took preventative measures to prevent a planned rave on farmland. It was the CJPOA which made the re-sale of football tickets (but no other tickets) illegal in the UK.

BPI SAYS THAT PHYSICAL PIRACY IS ON THE UP 29/08/06
The wide availability of CD burners means that it bseems physical piracy is on the up accoring to research carried out by Ipsos for the British Phonographic Industry. the BPI says that physical piracy cost the UK music industry around £165M (in retail value terms) last year; this is equal to around 10% of legal sales. This is on top of the estimated £414 million in illgal downloads in 2005.  Some 37M pirate albums were sold last year - around 33%  of pirated CDs are sold at markets/car boot sales, around 25% are bought from friends and a fith are bought through work colleagues. The BPI is calling for the police to put music piracy higher on their agenda and to make it easier to prosecute those selling them. CD burners have resulted in the emergence of a 'cottage piracy industry' that is more dispersed and, therefore, much harder to track fully and successfully prosecute against than old style illgal pressing plants.

LOST PROPHETS SURPRISE WINNERS AT KERRANG! AWARDS 25/08/06
Whilst Muse were the hotly touted favourites for multiple gongs, it was the Lost Prophets who walked away with Best Album and Best British Band at the Kerrang! Awards in London on the 24th August.  whilst Muse had to be happy with Best Live Band. Best Band On The Planet went to My Chemical Romance, Best Single went to Bullet For My Valentine (Tears Don't Fall), Best Video was for Fall Out Boy (Sugar, We're Going Down), Best British Newcomer was Bring Me The Horizon, Best International Newcomer was Aiden and the Classic Songwriter went to Placebo. The Prodigy won the award for "Spirit Of Independence". The Kerrang! Hall Of Fame went to Slayer and the Kerrang! Legend went to AC/DC guitarist Angus Young.

DUTCH COURT ORDERS ONLINE PIRATE TO BE UNMASKED 25/08/06
A court in Holland has ruled in favour of the country's anti-piracy group BREIN and has ordered Dutch internet service provider (ISP) UPC to reveal the identity of a suspected illegal file sharer. Dutch courts had previously been reticent to make suh orders because of privacy concerns and less than robust record company legal procedures meaning that record labels could not find out the identity of illegal uploaders, downloaders and file sawppers. Now the courts have held that it is acceptable to order UPC to reveal identities of individuals providing the content owners can prove, beyond reasonable doubt, that a copyright infringement has taken place, and that the alleged infringer is a "registered customer" with the ISP.

MADONNA CRUCIFIX ROUTINE PROVOCATIVE BUT NOT ILLEGAL IN GERMANY 22/08/06
The worry that Madonna might be prosecuted in Germany over her crucifix routine have been allayed after officials agreed that whilst Christian groups may have been "hurt" by the "provocative" image of Madonna on a cross, the singer was protected by laws that protect artistic freedom. A spokesman for the city of Dusseldorf, who said they would be monitoring Madonna's concert there last weekend, told reporters yesterday that no action would be taken against the singer.

KEANE FRONTMAN IN REHAB AS US TOUR CANCELLED 22/08/06
After cancelling three shows because of band "exhaustion", Keane have now said that frontman Tom Chaplin is going into rehab for drink and drugs problems. Chaplin has admitted to his fans that he is checking himself into rehab. On the band's website he writes: "I've been having to deal with an increasing problem with drink and drugs, and the time has come to get the professional help I need to sort myself out. I feel desperately disappointed to be letting down our fans, but I want to get myself right now so that I can be back on the road for the rest of the year." The cancelled gigs included Ibiza Rocks, T-on-the-Fringe and a Vodafone sponsored event in Ireland and Chaplin will join Babyshambles frontman Pete Doherty in the Priory clinic - Babyshambles also cancelled their Ibiza  performance after Doherty was ordered to remain in rehab by a court. Keane's US tour was due to start on September 7th.

BRIT AWARDS TO BE BROADCAST LIVE 22/08/06
After falling ratings in recent years, the Brit Awards organisers the BPI are hoping to rekindle viewer interest broadcasting the whole event live. The last time this happened was the infamous Mick Fleetwood/Sam Fox presented fiasco in 1989 which kept viewer attention only by the fact that it was so extraordinarily dire. The 2007 awards will take place on Valentines Day and ITV will remain as the event's broadcast partner. BPI boss Peter Jamieson told reporters: ''If Valentines celebrates love and the BRITs stands for great
music, what better way to celebrate Britain's love for great music than to put the two of them together? British music is in one of its most exciting phases with new British talent shining both at home and abroad, so what better time to take the show live."

TOWER RECORDS FILES FOR CHAPTER 11 PROTECTION 22/08/06
After weeks of speculation and after having had their credit lines pulled by the major record labels US music retailer Tower Records has filed for Chapter 11 bankruptcy protection, for the second time in two years. The music chain has been up for sale since the start of the year and current owners hope Chapter 11 court protection will enable them to complete a sale without fear of creditors forcing a liquidation.

PARADIGM BUY LITTLE BIG MAN 22/08/06
CMU reports that US agency Paradigm which represents Andy Garcia, Laurence Fishburne and Philip Seymour Hoffman, has bought the New York based music agency Little Big Man, which represents the likes of British bands Coldplay and Arctic Monkeys in the US. This is the sewcond major foray into music for Paradigm in recent years] who in  2004 brought music bookers Monterey Peninsula Artists whose roster includes Aerosmith, Black Eyed Peas and the Dave Matthews Band. 

GERMANY'S CTS TO ENTER SECONDARY TICKET MARKET 22/08/06
Billboard.com
reports that CTS Eventim, the Bremen-based ticket marketer and promoter, is planning to launch a Web-based secondary-market platform for live-entertainment tickets. Logistics company DHL will collect the ticket directly from the seller, while CTS Eventim will handle online payments and fulfilment by dispatching the tickets to the secondary buyer. The platform will be accessible to ticket buyers in the European countries where CTS Eventim is operating, including major markets such as Germany, Austria, Switzerland, and the Netherlands, plus Croatia, Hungary, Bulgaria, Slovakia, Poland, Slovenia, Bosnia-Herzegovina, Serbia, Montenegro and Romania in Eastern Europe.

ACADEMY PURCHASE REFERRED TO COMPETITION REGULATOR 22/08/06
The propsed purchase of Academy Music Holdings Limited by Hamsard 2786 which itself is controlled by Live Nation and Gaiety Investments Limited has been referred to the Competition Commissin by the Office of Fair Trading in the UK on the grounds that the acquisition might substantially lessen competition in the supply of indoor live music venues in London.  The Commission should report by the 2nd February 2007.

NEW TICKET EXCHANGE LAUNCHES IN EUROPE 19/08/06
Hot on the heels of the Concert Promoters Association's plans in the UK to launch a free ticket exchange website to cut out ticket touts (an official 'scarletmist' site) a new European online ticket-exchange venture called Viagogi, designed to bypass scalpers, officially launched on August 18th in the United Kingdom. Viagogo is the brainchild of CEO Eric Baker, co-founder of the US based StubHub.com ticket-exchange agency, the Web-based platform that allows ticket-holders unable to attend major events to exchange them legitimately with ticket-less fans. In a high profile launch Viagogo said that its first two clients were Chelsea Football Club and Manchester United Football Club, two of the world's biggest and wealthiest soccer clubs. reselling football tickets is specifically restricted the UK under the 1994 Criminal Justice Act. However the exchange of other live-event tickets in the United Kingdom is not illegal. As the secondary market (and indeed the 'eBay' market) have grown in the UK, theatreland, the live music industry and public concerns has led to the UK government to belatedly consider the problem of touting and after lobbying by theatre owners, music promoters and legitimate ticket agents the government has (rather perversely) called on the entertainment industry to 'put its ticketing house in order' or run the risk of being legislate/regulated in the UK . Viagogo expects to open for business in Germany later this year.

MORRISSEY LIVE DOWNLOADS LAUNCHED AT V 19/08/06
Morrissey
fans will be able to download a live performance of the singer's up coming single 'In The Future When All's Well' within minutes of it being performed at the V festival. The special download promotion encourages fans to pre-order the live track via text message while at the festival. If registered they will automatically receive a digital recording  of Morrissey's performance of the new single shortly after he performs it this weekend.  Morrissey is one of the headliners of the two site festival alongside Razorlite, Keane and Radiohead - headlining the main stage at Stafford Weston Park on Saturday 19th and Chelmsford Hylands Park on Sunday 20th August.

DOHERTY FACES SPECTRE OF JAIL 19/08/06
Babyshambles
front man Pete Doherty faces the real prospect of a custodial sentence after being released on conditional bail by Thames Magistrates Court. Ordering than Doherty remain at the Priory rehabilitation clinic until his next appearance, the District Judge made it clear that prison remained an option when sentencing. The singer was arrested and it is alleged that he was in possession of heroin, crack cocaine and cannabis. Dohetry is already serving a Community Order with a drug testing requirement. A numbe of Babyshambles gigs will be cancelled as a result of Doherty's arrest.

GOOGLE EYES 19/08/06
Google
have stepped up their involvement in music with the launch of Music Trends, A new service that track preferences and artist choices of its Google Talk IM client base. Users can opt in to the system which then picks up information from music players including iTunes, Windows Media Player and WinAmp. A chart of results can then be viewed online. The service will also allow Google and users to swap listening ideas with others users with smilar tastes, and, we presume, fro Google to target users with relevant marketing and promotions.

UK GOVERNMENT TO SURVEY LIVE MUSIC SCENE 18/08/06
The UK Government has launched a survey into how the Licensing Act 2003 has affected live music at pubs and other small venues and pollsters Mori will be contacting 2,000 outlets over the next two months. Venues will be asked how they coped with the licensing application process and how they have been affected by the end of the two in a bar rule. They will also be asked about how pubs are using Temporary Events Notices (TENs) to stage live music. The survey is part of the Department of Culture Media and Sport's Live Music Forum activites and findings will be reported to the DCMS as part of the Forum's final report later this year. Some landlords and event organisers have actually found the Act a positive move forward in promoting live music - however not all have and the main criticisms of the 2003 Act seem to be aimed at increased licensing costs and the complex and bureaucratic application process. This has provded to be especially daunting for 'village hall' events - community based entertainment and small local, charity and free events - where event organisers simply cannot cope with new government regulation and are put of by the spectre of draconian penalties when failing to comply with new rules. This hasresulted in a number of small folk and jazz events saying that they will have close down unless the regulatory burden is eased.  With new legislation including the Licensing Act, the Disability Discmination Act and the Private Security Industry Act alongside ever present health & safety regulation, noise regulation and increased insurance costs it seems to becoming clear that many small events and many small venues simply cannot present live music in the current climate despite a clear consumer demand for live music.

RIAA V THE DEAD 18/08/06
Its August, its the silly season, but even the Recording Industry Association of America have surpassed themselves this year and must be front runner for this year's 'Foot In The Mouth' daftness award. So here's what the major labels trade association is up to now .... in the Michigan case of Warner Bros. v. Scantlebury which was about illegal internet downloading of music, the RIAA learnt that the proposed defendant, Larry Scantlebury,  had sadly died. Now this is usually a fairly convincing reason to drop an action. But oh no, with not a thought as to the looming PR disaster, after learning that the defendant was no more, the RIAA made a motion to stay the case for 60 days in order to allow the family time to "grieve", after which time they want to start taking depositions of the late Mr. Scantlebury's children ..... yes, it must be August and it must be the RIAA.

WARNERS LOSSES NARROW 11/08/06
Warner Music has announced that its Q3 losses have narrowed to $14 million (£7.5 million) from net losses of $179 nlast time. The improved figures are based on better revenue figures and shrinking costs.

LIMEWIRE SUED BY RIAA IN USA 11/08/06
No doubt bouyed up by the US Supreme Court's decision against Grokster, the Australian Federal Court's decision against Kazaa and indeed Kazaa's recent global out-of-court $100 million + settlement with the major labels in the USA, the Recording Industry Association of America (RIAA) has filed a lawsuit against Lime Group, LLC., LimeWire, LLC, Mark Gorton (CEO), and Greg Bildson (CTO). Lime Group is the umbrella company which owns the LimeWire development firm. Back last September, LimeWire, along with other P2P developers, were the recipients of RIAA cease and desist letters. The letters instructed P2P developers to "...immediately cease-and-desist from enabling and inducing the infringement of RIAA member sound recordings. If you wish to discuss pre-litigation Resolution of these claims against you, please contact us immediately." BearShare, eDonkey, and WinMX, all ceased operations as a result of the RIAA letter, however, LimeWire's operations continued. At one stage, LimeWire was expected to introduce a "copyright filter" into it's softwarwe but months have passed, and the filter has yet to materialize. The RIAA claims that by failing to implement a filter for unauthorized works and by profiting from an infringing business model, LimeWire actively induces copyright infringement (which would make Limewire illgal post the Grokster decision). Kazaa has promosed to launch a legal service.

MALAYSIAN PROMOTER FINED OVER PUSSYCAT INDECENCY 11/08/06
Authorities in Malaysia have fined the organisers of a recent Pussycat Dolls concert for flouting the country's decency laws. CMU reports that promoters Absolute Entertainment have been fined 10,000 Ringgits (£1436) for allowing the US girl band to perform "sexually suggestive" routines at a concert held in Kuala Lumpur on 26 July.
Malaysia's culture minister Rais Yatim is quoted as saying: "I believe the way the Pussycat Dolls behaved on stage amounted to gross indecency". In 2003 Linkin Park were banned from earing shorts during a live show in Malaysia and in 2004 Mariah Carey was asked to comply to dress regulations imposed by local authorities

NEW DETAILS ON KORN DEATH 11/08/06
US police have now said that new evidence suggests that the fight which left Korn fan Andrew Richardson (30) dead could have started over a baseball cap. Previous reports suggested that the fight started after Richardson tried to protect his pregnant girlfriend and a disabled child.  Atlanta resident Michael Scott Axley (24) has been arrested on suspicion of the murder. Korn have said that they are "appalled" by the "senseless act" and had appealed for witnesses to come forward.

US JUDGE TO HEAR AVRAM - JACKSON 1999 DISPUTE 11/08/06
A Superior Court judge is to make a ruling on a lawsuit filed by Michael Jackson relating to his long running dispute with concert promoter Marcel Avram over two cancelled concerts from New Year's Eve 1999. Jackson claims that Avram has breached a previous agreement relating to this dispute, and is looking for a court resolution that prevents the promoter from taking any further action against him.  Avram originally sued Jackson after the singer
pulled out of the two 1999 concerts. In 2002 the two parties reached an out of court settlement which saw Jackson pay the promoter $6.5 million. The latest dispute is apparently over whether that settlement was final and binding, or whether Avram still has rights to push for third party arbitration in a bid to secure a bigger compensation pay out.

MURDER INVESTIGATION AFTER KORN CONCERT ASSAULT 03/08/06
Police in the US have launched a murder investigation after an assault at a Korn concert in Atlanta resulted in a tragic death. Audience member Andy Richardson was assaulted by two fellow audience members, reportedly after asking them to be careful to not collide with his pregnant girlfriend and a mentally ill child who was accompanying him. Richardson was rushed to a local hospital but was declared brain dead on Tuesday, and yesterday his life support machine was turned off. Local police have said that they have identified what they refer to as "persons of interest" in relation to the case, but as yet they have not made any
arrests. Richardsom was allegedly punched in the head in the mosh pit. Korn have asked that "anyone who witnessed this senseless act or has any information about the attack to please immediately come forward by contacting local authorities".MEAT BEATS BAT TRAP 03/08/06
Meat Loaf has brought his trade mark action against Jim Stienman to a close after it seems the pair made up. The dispute came to a head because Meat Loaf is about to launch a third instalment of the Bat Out Of Hell trilogy without Steinman's involvement - but Stienman's Bat Out of Hell Inc owned almost all of the registered trade marks to the name in the US which would have potentially prevented a global release and touring by the Loafmiester.

UNIVERSAL TO RE-RELEASE COSTELLO 03/08/06
Universal Music Enterprises
has acquired eleven Elvis Costello albums, and has plans to for "definitive reissues" with deluxe editions, compilations and box sets set to be released. The early albums, beginning with 1977's 'My Aim Is True' through to 1986's 'Blood and Chocolate', have already seen expanded re-releases in recent times, with Rykodisc re-issuing them back in 2001.

CONCERTS AND FESTIVALS CANCELLED AS MIDDLE EAST CONFLICT WORSENS 02/08/06
The escalating conflict in the Middle East has almost shut down the live music scene in the Lebanon - promoter Nagi Baz (Buzz Productions) told Audience magazine that he was in the process of refunding 20,000 tickets for his Byblos Festival after only two of the scheduled five concerts took place. The bombing of the airport in Beirut prevented Sean Paul arriving for a sell out show. The Baalbeck Festival has also been cancelled.

CONTROVERSIAL FRENCH COPYRIGHT LAW DECLARED INVALID 02/08/06
The French Constitutional Council has declared major aspects of the recently passed copyright legislation which was bitterly opposed by Apple, unconstitutional, undermining some controversial aspects of the legislation. Released late Thursday, the council's 12-page legal finding made frequent reference to the 1789 Declaration of Human Rights and concluded that the 'iPod' law violated the constitutional protection of property. The Council eliminated reduced fines for file sharing and said companies could not be forced, without compensation, to make music sold online compatible with any music device.

GAIETY AND LIVE MAKE MOVE ON ACADEMY 02/08/06
Dennis Desmond's Gaiety Investments and Live Nation are moving to acquire Academy Music Holdings (which owns 13 concert venues in the UK including the Brixton Academy and Shepherds Bush Empire ). Desmond and is the leading promoter in Ireland through MCD. He also has interests in UK festivals T In The Park, the Isle Of Wight festival and V. Desmond also currently has a 12.5% state in Academy Music Holdings. There is no indication of how much Academy Music Holdings could go for, but the company was valued at £34M two years ago. It reported a turnover of £18M last year and profits of £3.3M. The proposed acquisition has been referred to the Office Of Fair Trading which will look at concentration in ownership in the live sector. Live Nation's USA expansion is also being looked after the announcement that Live Nation was buying House of Blues. The Justice Department will be looking at competition (anti-trust) issues rising out of the purchase of HOB and its eight ampitheatres and chain of ten clubs. Back in the UK, AEG has sold the Manchester Evening News Arena for a reported £62 million. The live music sector has been incredibly buoyant in the UK for the past decade and prices for tickets have risen considerably while the recorded music side of the business has been forced into squeezing prices. In this month's Five Eight magazine the journal looks at how far concert venues can go in what is charged for tickets and how the sector must deliver better value for money.

 

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