hypebot

Coalition of Independent Music Stores Top 200 for Week Ending 02-25-07

Pos. ARTIST  |  TITLE
1 WILLIAMS*LUCIND|WEST
2 EXPLOSIONS IN T|ALL OF A SUDDE
3 ANBERLIN|CITIES
4 SHINS|WINCING THE NIGHT AWAY
5 GRIFFIN*PATTY|CHILDREN RUNNING
6 JONES*NORAH|NOT TOO LATE
7 ALLEN*LILY|ALRIGHT STILL
8 BLOC PARTY|WEEKEND IN THE CITY
9 FALL OUT BOY|INFINITY ON HIGH
10 GOOD THE BAD & |GOOD THE BAD &
11 RAE*CORINNE BAI|CORINNE BAILEY
12 PETER BJORN & J|WRITERS BLOCK
13 FOSTER*RUTHIE|PHENOMENAL RUTHI
14 DIXIE CHICKS|TAKING THE LONG W
15 OF MONTREAL|HISSING FAUNA ARE
16 JESU|CONQUEROR
17 MAYER*JOHN|VILLAGE SESSION EP
18 DROPPING DAYLIG|BRACE YOURSELF
19 MAYER*JOHN|CONTINUUM
20 SPEKTOR*REGINA|BEGIN TO HOPE

Read the entire indie Top 200 after the jump.

New Music Business Briefing For 2/27/07: MP3 Lawsuits Weighed, New Music Cells, Satelitte Shows Gains & More

>>> The industry is beginning to weigh potential fallout from lawsuits over mp3 patents. For now at least is business as usual.

>>> Cell makers are about to deliver a new wave of feature rich cell phones that include more music storage.

>>> Sony BMG withdraws a Deep Purple live release after band's singer complains.

>>> Unlicensed online sheet music may be the next big target of industry lawsuits.

>>> A new Arbitron survey shows that satellite radio accounts for a surprising 3.4% of radio listening. Meanwhile Sirius reported subscriber gains and another quarterly loss of a mere $245 million

New Music Business Briefing For 2/27/07: Changes At eMusic, BitTorrent Gets Legit, Tequila Says No To Labels, & More

RUMOR:  We hear that there were a few layoffs at eMusic last week. Are profits down or are they just trying to make the numbers pretty before looking for a buyer? 

>>> Meanwhile eMusic head David Packman is publicly predicting that DRAM will be dead by 2008.  He may be right but it's interesting that he's leading the charge for a change that could add a lot of competition that would challenge his own business.

>>> BitTorrent has opened a paid movie and TV download store. Music is said to be up next.

>>> Tila Tequila who has almost 1.7 million friends on MySpace claims to have rejected two labels and is releasing her first single exclusively via iTunes. 

>>> Politically themed music scored well at the Oscars.

Broadcast Radio Risking Irrelevance

Media consultant Jerry Del Colliano is calling on broadcast radio to get involved aggressively and creatively in internet broadcasting or risk becoming dinosaurs when universal WiFi becomes available.

"They've lost the next generation as they migrated to their mobile devices and the Internet. So what does that say? Well, when they are not fighting Arbitron's People Meter or when they stubbornly try to sell HD radio as the next big thing, they make excuses." More @  Inside Music Media via R.A.I.N.

KOCH To Get New Owners

The same public market investments that many believe robbed the major labels of their entrepreneurial spirit, creativity and stomach for artist development, is now finding its way into the independent music sector.

Entertainment One, the firm that owns leading North American indie distributor and label KOCH, is being acquired by the UK's Marwyn Investment Management under the moniker Earl Street Capital Ltd.  Earl Street earlier this month entered into a conditional agreement to buy all of Entertainment One for $167 million USD including estimated debt of $58.6 million.  Entertainment One had originally purchased KOCH in 2005 for approximately $80 million.

Earl Street proposes to raise equity via a stock offering and that together with debt underwritten by TD Bank will fund the acquisition and provide working capital. It would also be common for lay-offs and cut-backs to follow.

EMI Update: DRM Free Talks Halted. New Buyers Emerge.

Talks between EMI and a number of download providers seeking upfront payments for DRM free catalog offerings have ended according to Bloomberg News. Discussions included Microsoft, Apple, RealNetworks, Yahoo!and Amazon with some deal virtually complete as little as just two weeks ago.

In addition to  a reluctance to make large advance payments a  major stumbling block is the potential sale of EMI to WMG or other investors.  Last week's court rulings involving the licensing of the mp3 technology would also only serve to dampen an further discussions. "It's a setback,'' Harold Vogel, an independent media analyst in New York, said in an interview. "That this industry fights every change tooth-and-nail is not helping reverse the tide."

New Buyers Emerge -
US buyout firm Fortress, which raised $635M earlier this month, is said to be reviewing EMI's numbers in anticipation of an approach  Apollo, One Equity (a private-equity firm linked to JP Morgan) and Permira (which was close to buying EMI late last year) are also reviewing their options as is the Warner Music Group.

New Music Business Briefing For 2/26/07:

>>> Last week's $1.52 billion ruling against Microsoft for use of mp3 technology could have a chilling effect on the entire music industry just as more labels were moving towards the format. Wired.com took an in depth look at the issue and concluded that one or more of the open source digital formats might be the answer.

>>> Internet radio added 26 million new monthly listeners in 2006 proving the viability of the media. 75% of the listening happened at work.

>>> Europe's largest indie Ministry Of Sound is protesting IMPALA's decision to back the WMG bid for EMI.

>>> The EU commission investigating the Sony BMG merger is looking at consolidation's effect on CD pricing.

>>> The FCC commissioners continued their series of public hearings on media consolidation in PA. Commissioners complained about the effect serious news and local content, but did not mention the effect on music or promise any solutions.

Recent Changes Inside The Executive Suites

A review of recent shifts inside the executive suites courtesy of The Music Registry :

• In A&R, Ron Laffite exits Capitol, Brian Postelle exits Virgin, and Cliff Audretch III joins Universal South.
• Caroline Records is reactivated with Jeff Rougvie as GM and Jermaine Dupri joins Island as President/Urban. Former V2 President Andy Gershon has moved to Epic and former Virgin President Matt Serletic has opend a new label.
• In Publishing, industry veteran Steve Smith has formed Anthem Entertainment, EMI Music Publishing names Stephen Dallas, Sr. as Director of Business/Legal Affair
• In Film & Television Music, Paramount TV and CBS TV Music Departments have merged and moved to a new location.

Europe's Largest Indie Protests WMG EMI Bid

Ministry of Sound, Europe's largest indie label best known for it's dance hits and compilations, has left the UK's Association of Independent Music over the trade group's European umbrella organization Impala's endorsement of Warner Music's bid for EMI.  (see previous story)

Ministry of Sound's Lohan Presencer said that he was "shocked" and argued that "...previous mergers of Universal/Polygram and SonyBMG had dramatically affected our level of support at retail, access to media, ability to licence major owned catalogue for our compilations and pricing....If a trade body claims to represent our interests and then does nothing to protect them, we have no choice but to do what's best for our business."  Presencer said that  M.O.S. would directly oppose any EMI and WMG merger before European regulatory bodies.

Various sources say that a number of other indie labels are considering leaving AIM or IMPALA. Earlier in the week EMI informed WMG (who has yet to make a formal bid) that it was concerned over EU approval and was also in talks with several private equity firms who would not face the same anti-trust barriers.

More: Discussion on the Velvet Rope.

New Music Business Briefing For 2/23/07:

>>> A court has ordered Microsoft to pay $1.52 billion in damages for use of two digital msusic patents owned by Acatal-Lucent that convert audio files to mp3's on the PC. That's a lot 'o Zunes.

>>> A new study says that ad supported video online will be far surpassed by paid video downloads in the next few years.

>>> Universal label Suretone (Weezer) will start seeding P2P's with incomplete music videos that link back to the label's ad supported web site for compete viewing.

>>> UK retailer CD WOW again catches industry flack for selling imported CD's cheaper than price regulated UK product.

>>> (Not Steve)JOBS:  Max Tolkoff leaves FNX Boston for the Indie 101 PD job in LA. Ex-Virgin Andy Gershon is named EVP at Epic. Expect more moves at Epic/Columbia. Justin Neschi gets the top digital VP post at WMG. And Ian Rogers will head Yahoo Music.

>>> Worthy Click:  Southmouth.com - All the news from all the sources on all yourfavorite bands all the time.

Ian Rogers To Head Yahoo! Music

Ian Rogers has been named GM of Yahoo! Music according to Billboard.biz.  He replaces both David Goldberg and Robert Roback who last week announced their resignations. Rogers was most recently VP of product development for Yahoo Music and will report to Vince Broady who heads entertainment for the company. 

Like most download and subscription services other than iTunes and perhaps eMusic, Yahoo has struggled to gain consumer traction. But Rogers has been promoted just as sea of change appears about to take place in the sector.  Some smaller players will probably fall buy the wayside and powerful new competition like Amazon will enter the fray.  But most importantly, more labels seem poised to drop DRM which will not only spark consumer interest but also level the playing field by providing iPod compatibly. 

KCRW Gets $500K To Experiment Online

LA's KCRW-FM has been awarded a $500,000 grant from The Annenberg Foundation to develop business models to sustain webcasting activities and further its innovative online music service.  The station has been a pioneer on the Internet launching three live streams (simulcast, all-news and all-music) in 1999.

KCRW's GM Ruth Seymour believes that “public broadcasting faces unique challenges in the online world. We have spent years educating the audience about the relationship between listener contributions and programming. But that relationship doesn’t appear to resonate online. Many users listening on the Web may not even understand that they are hearing a real radio station. This is especially true for KCRW’s most successful podcast programs.”

Currently, KCRW.com generates more than 1.6 million live streaming hours per month. In January  nearly 1 million podcasts were downloaded.

Coalition of Independent Music Stores Top 200 for Week Ending 02-18-07

Pos.  ARTIST | TITLE
1 WILLIAMS*LUCIND|WEST
2 JONES*NORAH|NOT TOO LATE
3 SHINS|WINCING THE NIGHT AWAY
4 GRIFFIN*PATTY|CHILDREN RUNNING
5 RAE*CORINNE BAI|CORINNE BAILEY
6 DIXIE CHICKS|TAKING THE LONG W
7 BLOC PARTY|WEEKEND IN THE CITY
8 FOSTER*RUTHIE|PHENOMENAL RUTHI
9 ALLEN*LILY|ALRIGHT STILL
10 MAYER*JOHN|CONTINUUM
11 FALL OUT BOY|INFINITY ON HIGH
12 GOOD THE BAD & |GOOD THE BAD &
13 OF MONTREAL|HISSING FAUNA ARE
14 MAYER*JOHN|VILLAGE SESSION EP
15 BEATLES|LOVE   
16 LEVERT*GERALD|IN MY SONGS
17 SPEKTOR*REGINA|BEGIN TO HOPE
18 MORRISON*VAN|VAN MORRISON AT T
19 PETER BJORN & J|WRITERS BLOCK
20 CLAP YOUR HANDS|SOME LOUD THUN

Read the entire CIMS Top 200 after the jump.

Hypebot's Music Industry Week In Review

>>> EMI Is For Sale Again :

• The Warner Music Group is making another attempt at buying a struggling EMI Music. 
• As a preemptive move to gain European regulatory approval , WMG made cut an innovative deal with indie trade group IMPALA to guarantee their support of any merger.  Previously IMPALA had fought merger moves by Sony and BMG.
• Several investment firms are also said to be eying a bid for EMI.

>>> Competing satellite broadcasters Sirius and XM have agreed to merge. Regulatory approval could prove tricky.

>>> Apple has settled it's dispute with Cisco over the iPhone name...they're sharing it.

>>> The RIAA is going after another 15,000 college students from 25 colleges for illegal file sharing.

>>> Part 1 of Hypebot's guide to the upcoming industry confab SXSW including a Torrent of 700+ free mp3's of showcasing bands.

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EMI Seeks Bids Beyond WMG

According to the Financial Times of London, EMI is in talks with several private equity firms including One Equity Partners a US group affiliated with JPMorgan Chase exploring alternatives to Warner Music's reported $6 billion approach.

People familiar with the discussions say that no firm offers have been made yet, as Warner and private equity suitors want to "conduct extensive due diligence on EMI's operations after it issued two profit warnings in quick succession since the start of the year".

Steve Jobs Learns To Share...iPhone Name With Cisco

Steve Jobs got a gold star yesterday for working well with others.

Apple and Cisco have agreed to share the iPhone brand and explore ways their products can work together, according to a joint statement late yesterday. Cisco sued Apple last month for violating a trademark Cisco registered in  2000.

Cisco gets to share Apple's shiney image and what choice did Jobs really have? Somehow iCell just doesn't have much of a ring to it...

The RIAA Smack Down Of 15,000 College Students

15,000 students from 25 US colleges and university have just received complaints from the RIAA alleging illegal music file sharing  The top five offending schools were Ohio, Purdue, the University of Nebraska-Lincoln, University of Tennessee and the University of South Carolina.

This totals nearly triple the number for the previous school year. But the RIAA seems convinced the program is working.  "It's something we feel we have to do," RIAA President Cary Sherman said. "We have to let people know that if they engage in this activity, they are not anonymous." 

"They" and all of their friends and classmates also never ever going to buy CD's from the labels that support such actions. 

SXSW "How To Guide" Part I

SXSW is just a few weeks away and it's time to start figuring out what bands you want to see, how your going to connect with the hundreds in your extended network that are attending and how much time you can spend attending various panels and the trade show. 

Fortunately SXSW has created a "toolbox" to help you navigate this often overwhelming experience:

• SXSW SMS send update to your mobile. Perfect for last minute changes as the convention unfolds.
• An Online Registrant Directory so you can see who else is going and set advance hook-ups.
• A compendium of SXSW reletated podcasts.  (You can add your own cast for free.)
• Most of the above content and more is also accessible via your cell via SXSW.mobi.
• A special SXSW Torrent with mp3's of 739 showcasing bands.

We'll be publishing more info during the run-up to SXSW and provide live coverage with three people on the ground.  It will all be archived under a new SXSW 2007 category. If you've got SXSW news or showcase info you want to share with fellow Hypebot readers please send it in.

Hypebot Adds Industy Stock Quotes

As you may have noticed we've added a stock ticker and news feed to the right hand column featuring music industry related stocks. This will appear daily and is constantly updated throughout the day.

We'd love your feedback at to which 10 U.S. traded industry related stocks you'd like us to track.

Weekly Hip Hop Business News From ProHipHop

From ProHipHop

• Slav Kandyba reports from the MAGIC Fashion Trade Show with varied notes and observations, a summary of a Global Youth Culture panel and the debut of two new hip hop magazines.
• Kim Ellis recently celebrated the one year anniversary of Atlanta's KE Consulting & Marketing Solutions at the Tupac Amaru Shakur Foundation for the Arts.
• Nas partners with 310 Footwear to launch the DISCIPLE Footwear Collection by 310.
• J. Space of tPC: the People's Choice discusses marketing tPC's mixtape to a global audience via MySpace.
• 50 Cent tangles with Cam'ron in a display of beef marketing.
• Rappers and moguls are buying getaways in Alpine, New Jersey.
• The U.S. importers of Cattier champagne recently clarified the true story of Armand de Brignac champagne and revealed that Cattier was placed in two major rap videos.
• The Rockport Company has unveiled its Spring campaign featuring black musicians and actors including Southern rapper Yung Joc.

Who Needs Broadcast Radio? Microsoft To Unveil Sync

Both General Motors and Ford will unveil a deal with Microsoft in the coming months that will put the software company's technology into some automobiles, The Wall Street Journal reported on Friday. The system, known as Sync, is designed to allow hands-free mobile phone communication and other wireless information transfers in the car, including email and music streaming and downloads sources told the WSJ.

With free unlimited streaming via the internet; who needs broadcast or satellite radio?

WMG Buys Euro Indie Backing Of Bid For EMI

More details are emerging as the dance between EMI and suitor Warner Music continues.

One of the major road blocks to any hookup between WMG and EMI has always been obtaining anti-trust approval of European Commission.  European indie music trade group IMPALA has already successfully forced the Sony BMG merger back for re-approval.  Today WMG announced that it has cut a deal with IMPALA that would have the indie label group actually endorsing the merger.

Warner Music has promised that if a deal to buy EMI is closed it will:

• provide specified but unnamed funding for but take no equity participation in the recently announced Merlin initiative, the new global digital rights licensing platform established by the independent music labels to represent the world's independent music sector
• ensure the divestiture of certain unspecified "recorded music assets to reinforce the market power of the independent sector"
• pursue "various other behavioral commitments which have the aim of benefiting the recorded music market as a whole and, in particular, the independent music sector"

EMI today acknowledged that WMG has again approached them but says that so far no specific offer has been made. Lawyers on both sides are already lining up for their piece of the action.

COMMENTARY -
WMG gets points for overcoming this hurdle prior to making a new offer EMI. But...

IMPALA what are you thinking?

Do you believe that even by banding together indies can't compete with the big bad majors? The poor little Indies even need Uncle Edgar's money to fund their own new licensing organization Merlin.  Too bad you think so little of yourselves.  We thought you were our last best hope to save the industry.

New Music Business Briefing For 2/20/07: WMG Wants EMI, Sirius Buys XM, Sony BMG Layoffs Loom & Much More

Yesterday may have been a holiday for some, but there was still plenty of major new music business news:

>>> A struggling EMI is being approached by WMG again about a takeover or merger. The news caused EMI's battered stock to jump but any deal faces EU regulatory hurdles.

>>> Rival sattelite networks Sirius and XM have agreed to merge with Sirius offering XM stock holders a a premium price.  But major regulatory hurdles loom with both the FCC who would have to overturn a previous ruling and the Department of Justice over potential antitrust issues.

>>> Rumors are growing that there will be big layoffs soon at Sony BMG. Most are centered around a combining of the Columbia and Epic labels much like the recent Virgin Capital coupling.

>>> Ringtone pioneers like Zingy and Dwango are scrambling to make the transition from a dieing polyphonic ringtone market to master ringtones and full song downloads. (Reuters)

>>> A YouTube plan to offer filtering software only to companies that have content deals with the company is drawing industry fire.

>>> Apple and Cisco continue discussion over iPhone name. (AP)

>>> David Crosby is ill postponing upcoming Crosby, Stills, and Nash tour.

EMI Music Division Appears For Sale

EMI could sell or spinn off its recorded music division as part of a radical overhaul, according to reports from the UK in an effort  to reverse falling profits. The plan is apparently being given serious consideration by EMI's board.

The goal is to radically cut costs and boost the EMI share price leaving EMI essentially a very profitable music publishing company with a catalog of more than one million songs.

And more details have emerge on efforts by EMI Music to get much needed cash by getting advances from download services to switch to DRM free mp3's as well as Real Networks approach to all labels to drop copy protection. Read more here.