hypebot

Music 2.0 Week In Review: EMI, eMusic, Starbucks & More

> UK may have legal P2P by end of '08

> EMI NEWS -

• A former Proctor & Gamble exec may be EMI's new CEO
• The promised massive layoffs have begun
• Coldplay had a big first week

> A Critique Of eMusic's Payments To Labels and How The Company Can Save Its Soul...And Help Indie Music

> Top 10 Indie Music Marketing Tools

> Starbucks is dropping most music from stores

> RealNetworks reorganized its structure

> What is Yahoo's Ian Rogers Up To Now? Topsin

> Facebook Passes MySpace Worldwide

NEXT WEEK: A look inside artist services provider Topspin, Where Have All The Good Manager's Gone?, The Music Industry's Dirty Little Secrets, Hypebot Gets Interactive & Much More.

Hypebot Updates & A Request

As you may have noticed, I continue to tweak Hypebots' design and format. I'm now just using only Hypebot.com for all url's instead of some from my provider Typepad. This means that many of you who had linked to Hypebot in your blogrolls, etc. in the past are not longer showing up on our stats and reports. (It may not matter to you, but this is the stuff that attracts advertisers and keeps things going.) Please take a minute to update your blog roll to link only to http:www.hypebot.com directly.

I also want to thank those who have been recommending more posts to Digg and Stumble, as well as sharing links and trackbacks.  Please also keep those great on and off the record news tips coming!

If you have problems with links or suggestions to improve Hyoebot, please share them. Our community has grown significantly and I want to make it even better.

Ex-Proctor & Gamble Exec May Head EMI

Guy Hands is reportedly negotiating with Elio Leoni Sceti, the head of home and heath product manufacturer Reckitt Benckiser in the EU to run EMI’s struggling record division.

Formerly with Proctor & Gamble, Sceti now watches over such brands as Airwick, Finish and Veet and is the leader among a half-dozen potential candidates who Terra Firma is talking to. “He is probably currently in the lead if he wants to take it,” a source told the Financial Times. Hands is also said to have approached both film and newspaper industries executives.

It's a fitting choice for Hands, who made his mark turning around highway gas stations in part by offering cleaner restrooms.

CIMS Indie Store Charts for Week Ending 6/22

Top 200

TW LW Artist  TITLE
1 D COLDPLAY VIVA LA VIDA
2 1 MY MORNING JACKET EVIL URGES
3 D FROM AUTUMN TO ASHES LIVE AT LOONEY TUNES
4 2 LIL WAYNE THA CARTER III
5 D WOLF PARADE AT MOUNT ZOOMER
6 3 FLEET FOXES FLEET FOXES
7 8 DEATH CAB FOR CUTIE NARROW STAIRS
8 D JUDAS PRIEST NOSTRADAMUS
9 6 WEEZER WEEZER (RED ALBUM)
10 4 HARRIS,EMMYLOU ALL I INTENDED TO BE

Read the rest of the CIMS Top 200 and the vinyl chart after the jump.

This Week's Top Stories

DID YOU MISS ANYTHING?

• EMI & Capital Begin Deep Staff Cuts

• Starbucks Dumping Most Music

• What Is Yahoo's Ian Rogers Up To Now?

• My Problem With eMusic

• Top 10 Indie Music Marketing Tools

I Really Don't Hate eMusic...Really.

If you question that people are still passionate about music, just take  look at the comments sections of my posts this week My Problem With eMusic and How eMusic Can Save Its Soul.  Many are well thought out arguments, but others are down right vicious.  In some kind of masochistic display of journalistic integrity ,I've left them all up for the world to see.

But despite my misgiving about how they pay labels and its use and accounting of free giveaway tracks, I do not hate eMusic...

UK May Have Legal P2P By Year's End

The UK may have legal music via P2P licensed at the broadband ISP level by the end of the year, according to the Register. The British government apparently pushed for talks between ISP's and the music industry as a preferred solution to legislation. South Korea is close to a similar solution.

It is a radical shift and many hurdles remain to be overcome including wholesale agreement from fractured recording and publishing industries. But all sides seem to agree that something must be done to re-monetize music and no other plan seems to offer similar upside.

COMMENTARY: It could take much longer for a broad experiment...

Friday's Music Briefing: MySpace Opens, Death Row Sells, XM Settles & More

HYPEBOT FEATURES -

• UK May Have Legal P2P By Year's End
• Radio Performance Rights Act Passes Committee
• I Really Don't Hate eMusic...Really
• Amazon Adds IODA Video and Films

> MySpace opens its walled platform further and allows 3rd party date sharing. (ars)

> Suge Knight's Death Row Records was sold for $24M to Global Music Group. (SOHH)

> XM has settled with EMI Publishing in the Pioneer Inno lawsuit. (press release)

> Napster faces a proxy battle from three shareholders saying that current management has not been aggressive enough against iTunes and in fighting piracy. (Reuters) The proxy battle may be a silly distraction for Napster's board brought by minor shareholders, but the three are right that Napster was slow to go mp3 as well as take other moves to compete.

> US and UK concert recommendation site SongKick has closed a $1.1 million funding round. (PaidContent)

> MTV continues to combine web and TV offerings with several new shows. (Reuters)

Radio Performance Rights Act Passes Committee

The U.S. House of Representatives Subcommittee on the Courts, the Internet and Intellectual Property today approved the Performance Rights Act (H.R. 4789).  While considering the bill, several members commented on further additions that may be considered including a “platform parity” amendment that would extend the legislation to digital broadcasting.

If enacted the Performance Rights Act amends federal copyright law to:

Amazon Adds IODA Video & Films

IODA has announced that Amazon will now carry their independent film and music-related video content. IODA’s filma and video catalog will now be available through Amazon’s Unbox digital video download service and CreateSpace, Amazon's on demand platform IODA already distributes a catalog of more than one million independent music tracks Amazon MP3 and  a network of music distribution channels.

How eMusic Can Save Its Soul...

I wrote this week about My Problem With eMusic, their payment structure and a lack of free track accounting. An industry insider agreed, but reactions from readers and across the net have been mixed.  Just in case I've got anyone's attention, here's how I think eMusic can save it's soul and help indie music by building on top of its strengths and existing infrastructure and business model.

MAKE eMUSIC THE #1 DESTINATION FOR INDIE MUSIC

• Make all blogs, music discovery features and forums public
• Aggregate top niche music bloggers
• Include all indie culture: film, art, books, fashion, sports
  • Build a community
  • Link with hip vendors
• Launch an "INDIE ONLY" MP3 download store
  • No major label product
  • No subscription required
  • Deep catalog
  • Variable pricing
• Create a home for D.I.Y. artists
• Keep selling subscriptions
  
  • Subscribers become V.I.P's
    • Similar tracks per month
    • Add discounts & privileges
  • Fewer free tracks
  • Full accounting transparency

Live Nation Adds Free Fast Lane Entrance

Top concert promoter Live Nation says that starting 6/25, ticket holders that bought direct via Live Nation Tickets at LiveNation.com can, at no extra charge, enter shows in Live Nation owned and operated venues ahead of other ticketholders. After buying the ticket, fans are told how to beat the crowd using a special "Fast Lane" entrance.

Live Nation is ending its relationship with Ticketmaster in the coming months and Fast Lane is part of a larger campaign to improve the live music experience and promote LiveNation.com as a hub for concert goers.  Live Nation venues range from small clubs to outdoor ampitheatres and include all Hose Of Blues and Filmores nationally.

Thursday's Music Briefing: RIAA, Indie Day '08, AimieStreet & More

> Judge upholds $107K in attorney's fees against RIAA. (ars)

> eMusic gears up to support indie music's Independence Day '08 July 4-14. The campaign includes an indie compilation and aggressive marketing. (press release)

> The Orchard's catalog of 1M+ songs will be available via AmieStreet.com's variable pricing model. Labels can opt in or out of participation, but the partnership is a significant validation AmieStreet's model. (press release)

> The blogger who streamed the un-released Guns & Roses album got a visit from the FBI. (Wired)

> Digital music entrepreneur Bruce Warila postulates "Digital music can't be marketed; it can only be found." (Music Think Tank) I don't agree, but Bruce is a smart guy and its worth the short read. 

An Industry Insider's View Of eMusic

Reaction to my piece yesterday "My Problem With eMusic" questioning payout formulas and  the use of free music has been strong on both side of the debate. In an effort to learn trying to learn more, I spoke to an industry veteran who told me that every other digital retailer pays 70% of retail gross at a minimum and gets special permission for each free track. eMusic pays 60% of net after deducting about 25% for expenses. In essence, they pay about 42% of gross (or 60% of 75%).

Some sources have said they believe that eMusic gives away and does not report...

Starbucks Dumping Most Music

Starbucks who recently turned its record label over to partner Concord, is about to scale back its music ambitions further. According to Silicon Alley Insider, by September the chain will cut virtually all of its music retail offerings. Gone will be racks of CD's, gift cards and promotional giveaways for iTunes. Only four retail CD slots...

Amidst Layoffs Some Good EMI News

The promised massive layoffs have begun in earnest; and although no one may be in the mood to celebrate, this week EMI's Coldplay debuted at #1 on the US album chart with "Viva La Vida," selling 721,000 units. The album is in its second week at #1 in the UK.

Also, new EMI solo artist Katy Perry had a strong debut at #9 on the US Album chart with "One of the Boys". Perry also has a #1 digital song and #1 ring tune with "I Kissed a Girl".

EMI & Capital Begin Deep Staff Cuts

The promised cuts have begun at EMI and its labels.  According to various reports:

• 10 are out at Blue Note, mostly in NYC
• Capitol Nashville VP of A&R Larry Willoughby and VP of Sales Bill Kennedy
• Denise Arguijo, a production manager in Nashville
• David Pak and a number of others exit from Caroline
• In house art and design staffs suffering severe cuts
• Anything that can be outsourced will be
• Total layoffs of 1500-2000 expected. Almost 30-40% of the workforce
• Expect more pink slips and details today 
  

Sources: Daily Swarm, Velvet Rope, Billboard, original reporting

RealNetworks Reorganizes

GAMES DIVISION SPIN-OFF NEXT

RealNetworks has promoted three executives and the formed a new operating structure. The changes are designed to bring together the companies portfolio of digital entertainment services to "foster innovation to fuel the next stage of growth" as well as set the stage for Real's spin-off of its games business.

John Giamatteo has been promoted to COO at RealNetworks, and Harold Zeitz has been promoted to COO of the Games S ivision. Mike Lunsford has been appointed executive vice president, strategic ventures. "The promotion of these three executives sets up RealNetworks' next chapter," said Rob Glaser, chairman and CEO of RealNetworks.

Beck Pre-Releases Via TouchTunes Jukes

TouchTunes will preview of Beck’s new album, “Modern Guilt,” via 10,000 US digital jukeboxes. Produced by Danger Mouse and Beck, “Modern Guilt” goes on sale July 8th, but will be playing on TouchTunes July 1st.  The song “Chemtrails” is currently streaming on Beck.com and imeem, but TouchTunes jukeboxes will be one of the first platforms to feature the album in full.

Two Views Of CEO Compensation....

I've written several times about executive compensation at the major labels particularly given their recent performance. After all, if the attitude at the top is "Who cares about the future; just grab the cash now.", that attitude will permeate the entire company.

Of course no one listens to me.  But maybe they'll take the advise of one of the richest men in America and his partner at Berkshire Hathaway.

“If you rise high enough in American business, you have a moral obligation to take less pay." - Warren Buffett

"If you’re in a job you’d pay to have and are an exemplar for the rest of the organization, there is a lot to be said for paying yourself little." - Charles Munger

Wednesday's Music 2.0 Briefing: Coldplay, Amazon UK, & More

HYPEBOT FEATURES:

• Deep staff cuts have begun at EMI and Capital
  
• RealNetworks Reorganizes
• Beck Pre-releases via TouchTunes Jukeboxes
• JOIN THE DISCUSSION: My Problem With eMusic
• Two views of executive compensation. Are you reading this Edgar?

 > Finally, score one for Capital/EMI even as staff cuts accelerate. Coldplay has first week US sales of 720K after it debuted in the UK with 300,000 units.

> Confirmation that Amazon MP3 will be crossing the pond soon and opening in UK. (Telegraph UK)

> Australians are spending $100M per year on digital music. (Smarthouse)

> Arbitron has released its 2008 broadcast radio networks survey. (FMQB)

> WORTHY CLICK: Zoomii returns shopping for books at Amazon back into a more off line experience complete with virtual shelves, etc. Could they do the same thing for records stores?  Maybe make it feel like a trip to Bleeker Bob's complete with that stanky smell?

Join The eMusic Discussion

A Tuesday morning post titled "My Problem With eMusic - Helping Indie Music While Exploiting It" is getting a strong reaction across the blogasphere, in the comments section here on Hypebot and even in eMusic's own forum. 

Read it and out an join the discussion here...

What Is Yahoo's Ian Rogers Up To Now?

TOPSPIN LAUNCHES

When Ian Rogers stepped down from Yahoo Music a few months ago TechCrunch declared that Yahoo! had "lost their music soul".  Lofty praise. But if passion for music and forward thinking count for anything - and they should - it's praise he often deserves. Ian Rogers is that rare bridge between the music industry and tech who understands the past and quite often has a vision of the future.

Rogers left Yahoo to head a semi-stealth start-up called TopSpin and this week the company began to reveal what they've been up to.

My Problem With eMusic

HELPING INDIE MUSIC BY EXPLOITING IT

PLUS: HOW EMUSIC CAN SAVE ITS' SOUL, AN INSIDER'S VIEW

I've written a lot over the last couple of years that has been critical of eMusic.  Some Hypebot readers and of course eMusic's have taken me to task for my comments.

Let me be clear. I think eMusic is a great concept. Indie music needs a place where it's king. Lower track prices often lead to music discovery and eMusic does a better job than most of encouraging discovery with reviews, recommendations and more.

My problem with eMusic is not from the consumer's perspective. It's the artist and the labels that I'm worried about. To keep the math simple...

Ludwig Adds 50 Channels To FM Stations

A new technology that attaches 50 digital channels to an existing FM radio signal could bring an unprecedented level of diversity to the broadcast dial. Ludwig Enterprises says the technology will allow it to acquire the rights to currently issued FM spectrum with minimal regulatory requirements and hit the airwaves in the top 50 markets.

Ludwig's plan is for a...

Tuesday's Music 2.0 Briefing: Ticketmaster, Spain's iPod Tax, Amazon MP3 UK & More

HYPEBOT FEATURES:

• My Problem With eMusic
• Top 10 Indie Music Marketing Tools
• New tech adds 50 channels to every FM broadcast

UPDATED

> Ticketmaster will carry $750M in debt when it is spun off from parent IAC. (paidContent) And its happening just prior to the end of their lucrative Live Nation contract.

> UK's The Verve are going D.I.Y. in the US via Magaforce/R.E.D. with their new release. EMI will put it out it in Europe. (Verve)

> Six major radio groups are complaining to Arbitron about new rating practices. (FMQB)

> As of July 1, Spain will impose a tax on all new devices capable of recording, copying or storing sound and images. (Billboard)

> eMusic is considering adding DRM free TV and video downloads to the mix. (NewTeeVee)

> How US terror policies are wrecking your summer concert season. (Boston Phoenix)

> Amazon MP3's UK will launch in October. (BR) I guess that's what they we're at London Calling last week.

> MTV is bringing the Video Music Awards back to LA. (EW)

WORTHY CLICK: SpitNow.com - an online community of Hip Hop fans. Their free widget enables direct to fan sale of downloads and merch.  They also tell me they'll be expanding the community beyond hip hop soon as well.

Top 10 Indie Music Marketing Tools

Every week brings the launch of another online service to connect musicians and fans.  Beyond spending endless hours on MySpace and Facebook, what are the best affordable online tools to communicate with fans and monetize the relationship? Here are our picks in no particular order:

1. BANDZOOGLE - It all starts with a great web site and these guys give you the tools to build one quickly. If your site doesn't do everything Bandzoogle does, ask your designer why or switch.

2. SONICBIDS - Easily and affordable. Create a robust emailable electronic press kit (EPK) with bio, photos, mp3's, videos and more.

3. CD BABY - The granddaddy of D.I.Y. music empowerment. Sell your CD's and downloads in a large community that supports indie music.

4. NIMBIT- A one stop shop to help you sell CD's, DVD's, downloads, merch. and e-tickets with very fair commissions. Plus great tools to spread the word.

Facebooks Passes MySpace Worldwide

For the first time, Facebook surpassed MySpace in traffic worldwide. In the US, however, MySpace is still ahead of Facebook with 73.7M unique visitors in May vs. 35.6M for Facebook. TechCrunch has more analysis.

11 Billion Videos Viewed Online Monthly

134 million people in the us went online to watch an astounding average of 81 videos for a total of 11 billion videos in April, the latest figures released by comScore.

• 71% the total U.S. Internet audience viewed online video
• The average online viewer watched 228 minutes of video
• 18-34 year olds were the heaviest viewers watching 287 minutes each
• 82.1 million viewers watched 4.1 billion videos on YouTube
  • 49.8 videos per viewer
• 46 million viewers watched 481 million videos on MySpace
  • 10.4 videos per viewer
• The average online video duration was 2.8 minutes

Monday's Music Briefing: Beatles, RIAA & Much More

HYPEBOT FEATURES:

• Live Nation Chairman Michael Cohl is reduced a consultant
• Top 10 Indie Music Marketing Tools
• Facebook roars past MySpace worldwide
• US views 11 billion online videos monthly
• The Orchard bankrupt indie TVT & Analysis
• Did you miss anything? Our Music 2.0 Week In Review

> Representatives are in talks with MTV Games and Activision about a Beatles themed video game. (FT)

> The Electronic Frontier Foundation is attacking the foundation of all RIAA lawsuits. (ars,
pdf of court filing)

> A look at Michael Bandier, head of Sony/ATV music publishing (FT)

> It looks like this week's Billboard  - The Indies Issue including a Q&A with Sub Pop's Jonathan Poneman , 10 Indie Visionaries and The Shins Going D.I.Y. is a good one.  Sadly, as usual, most of it is only online for subscribers.

> Happy Anniversary to Ethan Kaplan on three years as tech guru at Warner Brothers Records. I wonder if he ever got around to reorganizing his desk ?

> France nears a 3 strikes and your out anti-piracy law. (Variety)