Music Business News Articles

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November 2006 News Updates

RUTH BROWN - SINGER, DIVA, MOTHER AND CHAMPION OF ARTIST ROYALTY REFORMS 23/11/06
Ruth Brown, who had a varied and successful career as a R&B diva, has died aged 78. Among Brown's successes over a ten year spell with Atlantic Records were the chart topper Tears From My Eyes, Mama He Treats Your Daughter Mean and Mambo Baby (Oh What A Love). Brown was also well known for championing the cause of exploited and underpaid artists - especially black artists. Her own label was nickednamed 'the house that Ruth Built' but Brown was critical of some of Atlantic owner Ahmet Ertegun's business practices and called one offer of a $1,000 gift offered 'crumbs from a rich man's table'. After her successful but financially flawed first singing career, Brown raised a family and worked as a cleaner and school bus driving. She returned to the industry in 1975 and went on to more success with a 1989 Broadway revue, Black & Blue,  which won a Tony. She won a Grammy in 1990.With her new success and a lawyer at her side, Atlantic agreed to wipe out some $30,000 allegedly owned by Brown to the label and indeed paid her some $20,000 more as royalty payment systems were reformed by the labels. Brown was instrumental in getting Atlantic/Warners to donate $1.5 million to the Rhythm & Blues Foundation which helps needy black artists to this day. Famous for saying 'I can pick a good song but I sure couldnt pick a good man'  Brown hads three failed marriages but is survived by two sons.

COACHELLA GOES TO THREE DAYS & ADDS COUNTRY FEST 23/11/06
The Coachella Valley Music & Arts Festival will expand to a three-day event for the first time in 2007 between April 27-29. The following weekend (May 5-6), Coachella promoters Goldenvoice will launch an as-yet-unnamed country music festival at the Coachella venue, The Empire Polo Field, featuring George Strait, Kenny Chesney, Sugarland and Willie Nelson. The new event will sport four performance stages: the main stage, an "outlaw" stage, a bluegrass stage and a "storytelling" area. The expansion comes eight years into Coachella's existence, during which time the event has become the premiere yearly musical destination for thousands of fans around the world. The lineup for the 2007 edition of Coachella will not be announced until late January or early February. Source  Billboard

EMI PROFITS DROP AND MERGER GOSSIP DOESNT GO AWAY 18/11/06
EMI's half year financial figures showed a decline in both revenue and profit for the first half of the current financial year. Revenues for the period were £867.9 million, down 4.1% on the same period last year. Profit was also down, from £86.7 million to £62.7 million. The company's fortunes were hit most by a 5.2% slide in revenues in its recorded music division. This was partly because of the nature of the release schedule, with a number of key releases coming in the second half of the year. But overall figures were also affected by that previously reported "one off" accounting fraud in the company's Brazilian record company, which was discovered only recently, and which resulted in a previous overstatement of revenue of £12 million. But EMI is upbeat with second half albums and releases from Robbie Williams, Norah Jones, Keith Urban, Joss Stone and the Beatles 'Love' album all in the pipeline. But a question mark hangs over the departure of EMI publishing chief Martijn Bandier who is leaving the company earlier than expected especially against the background of a possible EMI-Warners label tie-up. The oft-touted merger of two major labels will be subject to US and EC competion (anti-trust) regulators and may mean a re-structuring of any new group's publishing arm - and perhaps both companies are awaiting the EC's decision on the potential Vivendi purchase of BMG Music before making a bid for the other.    

UNIVERSAL TO SUE MYSPACE 18/11/06
Universal Universal Music Group may have reached an agreement with Google, YouTube and now Microsoft's Zunes about legal content use but has now (18/11) filed a lawsuit against popular social networking site MySpace for infringing copyrights of thousands of its artists' works. Universal, owned by Vivendi, filed the suit at the US District Court Central District of California, Western Division. The lawsuit accuses MySpace of allowing users to upload videos illegally and taking part in the infringement by re-formatting the videos to be played back or sent to others. At the same time MySpace unveiled an enhanced copyright protection tool to make it easier for content owners to remove unauthorized material. MySpace later described Universal's action as "meritless litigation," saying in a statement its procedures for removing illegal downloads lived up to laws protecting digital rights. last month Universal Music sued two smaller video sharing sites, Sony Pictures Entertainment's Grouper and independent site Bolt.com.

IFPI KNOCKED BACK BY CHINESE DOWNLOAD DECISION 18/11/06
Following on from a Spanish Court's decisionj that private downloading for personal use wasn't illegal, The Chinese Internet search leader Baidu.com has been cleared of helping users to download music illegally in a case brought by the International Federation of the Phonographic Industry on behalf of some of the world's largest music companies. The IFPI which estimates that about 85 percent of all music consumed in China is pirated, said it would appeal against the ruling by the No. 1 Intermediate Court of Beijing and was confident it would be overturned. I am amazed by this inexplicable judgment that is totally out of step with Chinese law," IFPI chairman John Kennedy said in a statement.

NEW DOWNLOAD LAWS FOR GERMANY 18/11/06
In Germany, Justice Minister  Brigitte Zypries has introduced draft legislation limiting fines for private downloading to a cap of 50 euros ($64) per case in Germany. Zypries said that ''the limitation for the first warning letter from a lawyer ensures that we don't exaggerate in punishing copyright breaches".  The maximum applies only to those who download without intending to resell it.  To fine the downloaders, the music industry has been using a provision of German law that allows lawyers to force wrongdoers to write apologies, and then to pay the law firm's entire bill.  In future, the law firms would only be able to charge members of the public 50 euros per incident for this service. Zypries also said that the darft legislation would also increase powers to prevent product piracy, enabling German customs agents to rapidly destroy counterfeit goods that imitate famous brands.

CAREY SUES OVER CANCELLED HONG KONG GIG 16/11/06
Mariah Carey
is suing Promoter ONE, the Asia-based promoters who she claims cancelled a show just two days before she was due to play in Hong Kong on 28th October.
Carey's lawsuit says the company "breached its contractual obligations" and owes the singer unpaid fees and reimbursements for expenses. Carey's management firm Handprint Entertainment and the Hong Kong promotersare both blaming the other for the gig cancellation. ONE says that while poor ticket sales played a role in its decision, it was ultimately last minute "wholly unreasonable" demands made by Handprint that forced them to axe the concert. But, at the time, Handprint blamed ONE for failing to pay outstanding production and artists' fees. A ONE spokeman said he was glad of the opportunity to settle this dispute in court. He told reporters: "We received no reply to get our money back and we would love for the matter to go to court and the facts to come out and clearly she had savings by not coming. We would not presume to tell the court an outcome. This is a matter for the court, not arrogant assumptions... ONE Group is confident that we would prevail and they would be ordered to return money paid".

BLOC PARTY CANCEL US TOUR 16/11/06
A collasped lung suffered by drummere Matt Tong has meant that Bloc Party confirmed yesterday that they were going to have to cancel the remainder of their US tour with Panic At The Disco. The band announced last week that four gigs would not go ahead because of Tong's condition, but following medical advice to not travel or perform while he fully recovers the whole tour, which was due to run until the 9th December, has now been cancelled.

JACKSON BAFFLES THE WORLD 16/11/06
As if tempting fate (well the fate of a fresh exhibition of Jarvis Cocker's posterior), Michael Jackson didn't perform the much vaunted live version of 'Thriller' but sang about three lines of his infamous 'We Are The World' before wandering around the Earl's Court stage waving at fans and assembled children at last night's World Music Awards. A spokeman for the WMA, Julius Just, explained that the singer stopped singing as the the venue 'cut the sound' at 11pm due to curfew restrictions  - just as the singervwent onstage - although it seems a strange explanation as the backing track with built in backing vocals kept pounding on.

UK MUSIC HALL OF FAME 16/11/06
A performance of classic Beatles' songs performed by a 31 piece Orchestra, a gospel choir and conducted by Sir George Martin and featuring Roger Taylor on drums, Corrinne Bailey Rae on vocals and Razorlight's Jonny Borrell on guitar was the highlight of a star studded UK Music Hall of Fame awards show at London's Alexandra Palace. Prince, James Brown, Brian Wilson and Bon Jovi all performed at the annual awards ceremony at Alexandra Palace last night, with Led Zeppelin, Rod Stewart and Dusty Springfield all also inducted as inductees.  

TICKETRUSH STAGE MOBILE TICKETED KASABIAN GIG 16/11/06
Nokia Ticketrush are staging a special Kasabian gig at Leeds University on the 10th December - the event will be completely mobile ticketed. Commenting on the latest mobile tickets event, Nokia marketing chief Simon Lloyd told the CMU Daily "We are delighted that Nokia ticketrush.co.uk is continuing to offer mobile ticketed gigs. Mobile tickets have a huge impact on everyone who loves live music with faster and easier access to venues".

WHITER SHADE OF PALE PLAYS AT THE HIGH COURT 16/11/06
Procul Harum
keyboardist Matthew Fisher has been asked  to play the distinctive organ melody from the band's classic 1967 hit 'A Whiter Shade of Pale' in court to support his claim that he should be credited as and be paid as a co-author of the classic song which has generated millions of pounds in songwriting royalties from record sales and radio plays. Fisher claims that he wrote the organ line but frontman Gary Brooker and lyricist Keith Reid, who are currently credited for creating the song, disagree. The trial judge, Mr Justice Blackburne, himself a music and law graduate from Cambridge University, asked officials at the Royal Courts Of Justice in London set up a keyboard in the court room so that Fisher could talk through how, in his eyes, he created the piece of music. He described how he was inspired by Bach when crafting the song, but that he was aware that "this is meant to be a pop record, we didn't want anything too adventurous - too avant garde".

CONTROL ROOM SIGNS DEAL WITH UNIVERSAL 16/11/06
Control Room, Kevin Wall's company prevciously know as Network Live in its then tie-up with AOL and now providing live music content for MSN has signed a deal with the Universal Music Group which will see the filming and streaming live performances by the major's artists, starting with Snoop Dogg. It is expected the label will share in advertising revenues generated from the shows.

BEYOND THE SOUNDBYTES - A RECORD INDUSTRY IN CRISIS? 16/11/06
London's Foriegn Press Association was host to a Music Tank sponsored conference which followed on from Peter Jenner's 'Beyond The Soundbytes' repotr into the future of the recorded music industry (for executive summary see http://www.musictank.co.uk/bts.htm). A strong turn out of delegates from record labels, music publishers, academics, managers, artists and lawyers heard from a range of panels looking at the record industry set against the background of Tower Records recent  insolvency, the Sony ‘Rootkit’ fiasco and rampant online piracy. The Conference, chaired by Keith Harris,  asked questions from the music industry of how (if at all) music and particularly sound recordings could be monetised and copyright law revised. Alison Wenham from AIM announced that  AIM and the other music bodies that launched the ‘Value Recognition Right’ (VRR) back in July have re-branded this the ‘Value Recognition Strategy’ and they are still looking at formulating firm policy on a new right to enable copyright owners to monetise their copyrights, especially with internet service providers (ISPs) and mobile telephone operators.There were some positive signals from the Conference but the end result of the conference was a snapshot of an industry undergoing a profound period of change – with no real answers as yet.  Billy Bragg likened the record industry as a mansion sitting at the top of a crumbling cliff - not listening to the advice that the mansion would soon fall - and other delegates pointed to the outdated busines models and fatally flawed principles now underpinning a struggling industry. The Conference had perhaps a UK centric view of the new issues in monetising copyrights – but delegates did point to the global issues involved and one panellist mentioned that the next wave of piracy would come from a $100 Personal Computer Intel were planning to produce for the developing world piracy. Whilst music was seen to be undervalued there was at least with a willingness to debate new business models. The major label’s new relationship with Youtube and Universal recent deal with Microsoft’s Zunes heralded, perhaps, a new and pragmatic approach by the major labels – but a noticeable absence from the Conference were the British Phonographic Industry (BPI) who declined to attend. However representatives form SonyBMG and the IFPI did attend (and were congratulated for this) and EMI would have attended but could not.   It was also announced that whilst almost all areas of the UK music industry had agreed to the creation of a new Music Council to give the music industry ‘one voice’ with government in the UK and legislators in Europe – the BPI had declined to endorse this leaving the industry in limbo (and with ‘egg on it’s face as the Government had part funded the research leading to this)) - and the idea of 'one industry one voice' shot down in flames.  

MICROSOFT TO PAY UNIVERSAL A CUT ON ZUNE SALES 09/11/06
In a deal which could change the relationship between the music business and the electronics firms making music players, Microsoft has agreed to pay Universal Music Group a fee for each new Zune digital music player it sells. Microsoft's competitor to the iPod launches next week, accompanied by its own iTunes style download platform, the Zune Marketplace. But the new deal means that Universal will benefit from hardware sales as well as any tracks sold via the download platform.

DOHERTY SAYS THE CD IS IN TERMINAL DECLINE 06/11/06
Ged Doherty, chairman of Sony BMG in the UK, has projected that CD sales will halve in the next three years, but growing digital sales will not offset the physical decline. He argues record companies need to radically change their business model and create "genuine joint ventures" with artists in order to benefit from sponsorship and marketing opportunities that they were previously locked out of. The next issue of Five Eight magazine (out next week) looks in detail at the IFPI's half-year numbers and why record companies need to invest in understanding consumers better in order to turn around the decline. Its rumoured Ged also said that DRM protection on digital product was a waste of time ....... If true this seems like an interesting speech!
http://business.guardian.co.uk/story/0,,1940295,00.html

NOBS TO BE MIDEM MAN OF THE YEAR 06/11/06
Claude Nobs, the founder and CEO of the Montreux Jazz Festival, will receive the Personality Of The Year award at next year's MIDEM music convention.

SMALLWOOD LEAVES SANCTUARY 05/11/06
Santuary co-founder Rob Smallwood has left the struggling media group taking the managment of Iron Maiden with him. The Group said it would maintain an association with the band as they are Maiden's label in the US and will act as agents and merchandisers. Sanctuary shares fell 7.14% on the news to 13p. Sanctuary's remaining management stable includes Elton John and Morrissey.

JENNER CALLS FOR MUSIC LEVY ON ISPS AND MOBILES 05/11/06
International Music Managers Forum (IMMF) General Secretary Pete Jenner has called on the European Union to implement a levy on mobile phone operators and internet service providers to compensate copyright owners for the illegal downloading of music and illegal peer-2-peer file swapping. Music managers were part of the wide based music industry group which called for a 'Value Recognition Right' earlier this year to compensate copyright owners in the same way. That UK based group include the MCPS-PRS Alliance, AIM and the Music Managers Forum. Whilst Europe has traditionally adopted levies on hardware and on recordable devices such as cassette tapes and blank discs the UK has not used this system - many consumers who do not copy copyright material without permission object to a levy saying this is in a reality a subsidy for those who do copy. The European Commission has already unveiled plans to set up streamlined systems for copyright levies across Europe on photocopiers, cassettes, discs, CDRs and MP3 players. The EC's aim is to make levies more consistent, both across different member states and between different technologies.

ITS GONG TIME - TIMBERLAKE TOPS MTV EUROPE AWARDS 03/11/06
Justin Timberlake and Gnarls Barkley each won several trophies at the 13th annual MTV Europe Music Awards, held in Copenhagen on November 2nd.  Timberlake, who also served as host and performer at the event, won for best male and best pop. Gnarls Barkley won best song for their international smash "Crazy", and the Future Sounds award, a new category. The Red Hot Chili Peppers converted one of their leading four nominations, taking best album award for "Stadium Arcadium". Other winners included Depeche Mode for best group, Christina Aguilera for best female and Rihanna for best R&B. Muse won for best alternative and the Killers earned the best rock trophy. www.billbord.biz

UK GOVERNMENT TO SET UP SKILLS SCHOOL FOR THE LIVE MUSIC INDUSTRY 02/11/06
The UK government has earmarked £7 million to establish the country's first ever National Skills Academy for the live sector. The Academy, to be run by the government sponsored body Creative & Cultural Skills says it will work with key players in the live entertainments industry, including The Royal Opera House, Live Nation, Academy Music Group, the National Theatre and the Royal Shakespeare Company, to offer a range of training to those who aspire to work in the live entertainments sector. Some of those companies supporting the initiative will be expected to also provide some funding - the total cost of the scheme is expected to exceed £10 million. Creative & Cultural Skills will now submit a detailed business plan to the government in order to release the pledged funds. However, it is slightly odd that the Government felt that a completely new institution was needed -  and it is surely debatable whether or not we need another 'flagship' academy. Important skills training is already provided in the music industry by institutions such as Buckinghamshire Chilterns University College, The Academy of Contemporary Music, Paul McCartney's Liverpool Institure for the Performing Arts and Westminster University as well as industry groups such as the Music Managers Forum and AIM. BCUC alone provides an undergraduate degree in Music Industry Management with speciality routes including the live music industry and studio production as well as foundation degrees in Crowd Safety Management, Close Protection Security and Dance Tuition.

KURT TOPS ELVIS IN TWILIGHT SALARIES 01/11/06
As The Smith's once sang - 'nothing sells like a dead rock star'. Nirvana frontman Kurt Cobain might committed suicide in 1994 but he still earns a hefty salary and has overtaken Elvis Presley as the highest earning dead celebrity according to US business website Forbes.com.  His earning in 2005 topped £27 million. Presley (£22 million) had headed the list for the last four years. Peanuts cartoon creator Charles Schulz was third (£19 million), followed by John Lennon (£13 million). Other deceased earners in the Top Ten are scientist Albert Einstein, artist Andy Warhol, children's author Dr Seuss (Theodor Geisel), soul star Ray Charles, actress Marilyn Monroe and country singer Johnny Cash. 

THE UK'S LICENSING ACT RINGS IN THE CHANGES 01/11/06
Members of a historic town band are furious after being told they couldn't play Jingle Bells in their Christmas shows unless they paid for a licence - because the song has no religious content. Callington Town Band in Cornwall, a registered charity, is having to fork out £21 each for seven temporary licences to cover their Christmas programme after Caradon District Council's licensing department told the band it would fall foul of the Licensing Act 2003, which came in to force this April, if it played anything other than religion based carols during its seven Christmas concerts. The council said a temporary entertainment notice (TEN) was needed every time entertainment was provided in venues without public licences. That means festive favourites like Jingle Bells, White Christmas and Rudolph the Red Nose Reindeer need a licence whereas Christmas carols which are considered religious music do not. In London, Lambeth Council has revoked the licence of a Brixton nightclub where police discovered two loaded handguns and drugs during a raid earlier this month. The council’s licensing sub-committee took the decision to revoke the licence for the J-Bar in Stockwell Road, Brixton, at a meeting this week. The meeting was called after police raided the bar on Sunday October 8, discovering drugs and two loaded handguns. Using new powers granted under the Licensing Act 2003, within days the police had made an application to the local magistrates’ court that the club to be closed in the interests of public safety and to prevent crime and disorder.

A FOND FAREWELL 01/11/06
A sad farewell to Lebo Mathosa who died in a car accident in her native South Africa aged only 29. Lebo was lead singer with Boom Shaka who had major success in the post-apartheid 'rainbow nation' under Nelson Mandela. She visited London in 2001 for the Celebrate South Africa concert and also sang at Nelson Madela's 85th birthday party that year. Earlier this year Lebo was nominated for a Mobo Award and was one of MTV Base's most popular performer having performed at the channel's launch in Kenya in 2005. The music industry will also sadly miss Sandy West, drummer with the Runaways, who died following a long battle with lung cancer. Runaways vocalist Cherie Currie spoke about Sandy on the band's official website: "Sandy West was by far, the greatest female drummer in the history of rock and roll. No one could compete or even come close to her, but the most important was her heart. Sandy West loved her fans, her friends and family almost to a fault. She would do absolutely anything for the people she loved. It will never be the same for me again to step on a stage, because Sandy West was the best and I will miss her forever".

JACKO TO APPEAR AT WORLD MUSIC AWARDS 01/11/06
Michael Jackson
is set to peform in the UK for the first time in about nine years when he receives the Diamond Award for his contribution to music at the World Music Awards in London on the 15th November. The ceremony, this year hosted by actress Lindsay Lohan, will see performances from Beyonce, Katie Melua and Mary J Blige. Blige will also be the recipient of a Legend award for her contribution to R&B. Awards are based on worldwide sales.

TICKETMASTER EXPAND INTO CHINA 01/11/06
Ticketmaster
has expanded into China through an alliance with Beijing CSI Ticketing Development. The new joint venture, the catchy titled Beijing Gehua Ticketmaster Ticketing Co, will be the exclusive ticketing provider for the Beijing Olympics.

Q AWARDS HIT LONDON AND HARVEY GETS MIT AWARD 01/11/06
London's Grosvenor House Hotel had a galaxy of celebrity visitors as U2, Kasabian, The Who, The Kooks, Paul Weller, Oasis, Corinne Bailey Rae, Sugababes, Orson, The Feeling, Manic Street Preachers, Peter Gabriel, Embrace, Primal Scream, Take That, Smokey Robinson, Muse, Keane, Jay Kay, Razorlight, A-ha, Gnarls Barkley, Jeff Lynne and Girls Aloud all attended this year's Q Awards ceremony. The big winners of the day were Oasis and U2. Oasis took home the award for Best Act in the World Today along with the Classic Songwriter Award for Noel Gallagher. U2's The Edge collected the Q Innovation in Sound Award, with U2 receiving the special one-time-only Q Award Of Awards: Band of Bands accolade for polling most votes from Q readers through the history of the Q Awards. The same day (and in the same hotel) Harvey Goldsmith CBE accepted the Music Industry Trust Award 2006 for his services to the music industry. Harvey was presented the award by the Who's Roger Daltrey at a ceremony hosted by Awards Chairman David Munns and legendary broadcaster Paul Gambachini. The Awards dinner is a fundraiser for the BRIT Trust and Nordoff Robbins music therapy. Next stop - the UK's Music Hall of Fame at Alexandra Palace on November 14th. Brian Wilson, James Brown and Bon Jovi will all be performing and also will also be inducted into the Hall of Fame.

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