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