Music Business News Articles

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August 2007 News Updates

MAMA BUY MEAN FIDDLER VENUES 15/08/07
MAMA Group , which runs the Barfly chain as well as handling management for acts such as Franz Ferdinand and Kaiser Chiefs, has acquired a number of UK venues from the Mean Fiddler Music Group (MFMG). The venues include the Jazz Cafe, the Borderline, the Garage (currently closed) and the long closed  Mean Fiddler. In a deal estimated at £6-8M, MAMA will also acquire the Mean Fiddler name and MFMG will be renamed Festival Republic. MAMA also takes a 75% stake in G-A-Y, London's leadinng gay club operator. MAMA is listed n the UK's AIM market.

UNIVERSAL LOOKS TO BUY V2 15/08/07
After recently securing approval to acquire Sanctuary, Five Eight Magazine reports that Universal Music Group is moving to acquire UK indie V2. Suggestions are that the asking price could be £7M, but it will be subject to regulatory approval. Morgan Stanley (which provided financing for the label) currently owns 95% of the indie which Richard Branson set up in 1996 after selling the Virgin label to EMI. V2 sold off its North American arm to Sheridan Square at the end of 2005. Universal's parent company Vivendi was given approval to acquire BMG Music Publishing by the European Commission back in May.

MADCHESTER'S TONY WILSON DIES 11/08/07
Anthony (Tony) Wilson has lost his battle against cancer and has died aged 57. The Salford born music entrepeneur had been a broadcaster, writer, guru, boss of Factory Records the label behind New Order and The Happy Mondays, co-founder of In The City and famed for the Hacienda Club in Manchester recently immortalised in the film 24 Hour Party People where he was played by Steve Coogan. Tony underwent emergency surgery in January to remove a kidney. He died on Friday evening at the Christie Hospital surrounded by family . As tributes poured in, Phil Saxe, who used to work at Factory Records with Wilson, said: "Part of me, part of Manchester, part of modern British music has died tonight.

FIRST MILLION SELLING MOBILE TRACK ANNOUNCED 07/08/07
An anonymous group of Japanese medical students called Greeeen have become the first to have sold a million copies of a track via mobile phones. The track is called 'Aiuta' - meaning Love Song. The group have sold around 3 million copies across all digital formats. Greeeen have racked-up over half a million album sales, making them one of Japan's most successful new bands

NO BAGHDAD FOR SPICE GIRLS 07/08/07
Despite being a clear winner in an online poll designed to produce a lucky city, the Spice Girls have declined to visit Baghdad as part of their reunion world tour and will visit Toronto instead, Other cities to be visited in December 2007 and January 2008 include Vancouver, San Jose, Los Angeles, Las Vegas, New York, London, Cologne. Madrid, Shanghai, Beijing, Hong Kong,  Sydney, Cape Town and Buenos Aires

EMI WOE WITH CD SALES 07/08/07
Following hot on the heels of  BPI figures showing a 10% drop in CD sales for the first half of 2007,  EMI saw revenues from CD sales in the three months to the end of June drop by 19.8%. Digital revenues, however, rose by 26% in the period meaning that overall revenues at EMI Group dropped 5.1%. EMI Music Publishing grew 12%, helped significantly by litigation settlements.

BPI INDEPENDENTS DIRECTOR JOINS MMF AND HOPFGARTNER JOINS MTV 07/08/07
Jon 'Webbo' Webster , Director Of Independent Services for UK record industry trade body the BPI, has announced he will leave the organisation to take up the newly created job of CEO at the UK's Music Managers' Forum which is chaired by Jazz Summers.  Jurgen Hopfgartner has been appointed as MTV Network's Director Of Digital Media for Germany, Switzerland and Austria. Hopfgartner was formerly Head of Business Development at Metaversum GmbH, the Swiss digital-entertainment service developer:

MPA JOINS YOUTUBE BATTLE 07/08/07
The US's  National Music Publishers Association (NMPA) and a number of other music groups (including Cherry Lane Music Publishing and X-Ray Dog Music) have issued lawsuits against YouTube and parent company Google over copyright infringement. Viacom is currently suing YouTube to the tune of $1B over "massive intentional copyright infringement".  JASRAC, the Japanese collection society had already taken action against YouTube and has criticised the site for failing to implement proper copyrigHt protection technology.

AUSTRALIAN CLUBS GO TO COURT OVER COST OF MUSIC 07/08/07
The hotel and nightclub industries in Australia have launched a Federal Court challenge against The Phonographic Performance Company of Australia, the group that represents Australia's largest record labels, following a recent decision to increase the cost of music in dance venues by 15 times. Last month the Australian Copyright Tribunal lifted the rate for music played in nightclubs from seven cents per person a night to $1.05. The PPC, which represents more than 600 record companies, hailed the decision as a victory for musicians who had been exploited by nightclubs for years.

IRAN ARRESTS ROCK FANS 06/08/07
The Jerusalem Post (http://www.jpost.com) and the Guardian reports that authorities in Karaj, Iran have arrested more than 200 music fans, some from the UK and Sweden, attending a rock concert on grounds they were breaking the country's strict Islamic Sharia law, local media and witnesses said Sunday. Charges involved women singing and inappropriate clothing as well as unauthorised filming of the performances. A witness said police raided the concert as it was going to end late Wednesday some 50 kilometers west of the capital of Terhan.  "Police detained the young people who had gathered to enjoy music in a private orchard," said one witness. The public prosecutor in Karaj, Ali Farhadi , said Saturday that about 230 people were arrested during the underground concert, which he described as "satanic."

RIP LEE HAZLEWOOD 06/08/07
Lee Hazlewood , the US producer, singer and songwriter famed for writing ' These Boots are Made for Walking' has died of cancer aged 78. Hazlewood was born in Oklahoma and his father was wildcat oil driller and dance promoter. During the second world war he worked as an armed services DJ and during his career he championed an early Elvis Presley and  worked with legends such as Duane Eddy  and, of course, Nancy Sinatra, as well as father Frank (on 'Something Stupid') . In 2003 Primal Scream covered his classic Some Velvet Morning . He is survived by his third wife, Jeanne Kelly  and three children.

READING FESTIVAL WILL OVERCOME THE FLOODS BUT FFLAM SINKS 05/08/07
The Reading Festival has vowed their event will go ahead, despite damage to parts of their site from all those recent floods. Organiser Melvin Benn told NME: "I'd guess about 25 per cent of the campsite is under water and before long someone will say the festival in danger, so I just wanted to say that the festival will definitely take place. The water levels are going down but we've got loads of plans in place to move the campsites and parking if necessary". But Welsh festival Fflam has been cancelled completely due to bad weather and then a lack availability of bands. Originally sustained heavy rainfall was blamed on the postponment of the Swansea event on the 13th - 15th July but organisers said in a statement today: "It is with great regret that we confirm the cancellation of the Fflam Festival for 2007. After the initial postponement ... we have made every possible effort to try and secure a new date for the festival this summer. Unfortunately, we cannot find a date that suits all parties".

UNIVERSAL SNAPS UP SANCTUARY 05/08/07
Universal Music Group yesterday announced that they had now secured commitments to buy 90% of the shares in the Sanctuary Music Group which alongside th news of EMI purcase by Terra Firma means that two of London's biggest music firms will now fall back into private hands. Centenary Music Holdings, the Universal division buying Sanctuary, announced its recommended cash offer had been declared unconditional. Sanctuary has terninated a option distribution agreement with  Warners (Warners are paid certain sums for this termination).

EMI SOLD 02/08/07
Terra Firma has finally sealed its £2.4B take-over bid for EMI. Some 90.3% of EMI shareholders backed the proposed buy-out, paving the way for Guy Hands and his private equity firm to take the UK's only major record label over. It remains to be sen what might happen with the comany with speculation that the recorded music division could be sold to Warners or that the profitable music publishing arm sold off as a stand alone going concern.

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