At this point, most industry experts agree to the fact that EMI and Warner will pair up.

EMI recently raised the bid for Warner and rejected the counteroffer. EMI said it had increased its bid for Warner to $4.6 billion, from $4.2 billion in May, and also said Warner had turned the tables and bid about $4.6 billion for EMI on Tuesday. Neither company is welcoming the other’s bid. EMI said today that Warner’s proposal is “wholly unacceptable.” If these 2 companies combined “it” would own 25% of the global music business.

Analysts estimate there are several hundred million dollars in costs that could saved if the groups combined. If this happens, expect major lay-offs. Remember, that “mergers” don’t exist. “Mergers” are a myth. A merger is a dressed up word for takeover. Read the full article in the NY Times.

NBC who told YouTube to take “Saturday Night Live” clips off its site has made friends with the free video site YouTube. NBC cut a deal with YouTube to preview and promote it’s Fall broadcast line-up.

“The distinction between television and video is becoming murkier and murkier,” John Miller, chief marketing officer for the NBC Universal Television Group told AP. “Rather than putting our heads in the sand and saying this doesn’t exist, we’re trying to jump in and embrace it.”

As the record labels are currently removing their content on YouTube, NBC is embracing it. Good Move! (Lefsetz)

Every week KOAR will bring you an in-depth article by veteran music attorney and digital music expert Christian Castle. Enjoy!

There are many legal and business problems that have slowed development of digital music services. One of them is clearing the rights for songs for music subscription services that permit on-demand streaming of sound files.Â

  The same problem exists for permanent downloads. However, record companies have agreed to take responsibility for mechanical licenses for permanent downloads on U.S. based online services, the so-called “pass through� license that is so despised in publisher and songwriter circles.

  Record companies have not, however, agreed to assume responsibility for the payment of royalties for on-demand streaming as their lawyers don’t believe their rights under mechanical licenses and the Copyright Act extend that far. CONTINUE READING

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Switchfoot will head back into the studio in November to record a new record. The last record “Nothing is Sound” sold a disappointing 526,000 while its predecessor “The Beautiful Letdown” sold 2.6 million. Some say The album got off to a rough start when it was one of 15 titles recalled by Sony BMG because software on the CDs behaved like spyware. C’mon!…The new record was mediocre and the lead off single failed to react which was probably the main culprit rather than the spyware program.

Digital downloads are beginning to level off according to 2 new reports. This isn’t great news for the music industry which depended on the growth of digital downloads to offset a major decline in compact disc sales which were down 25 percent from a peak of 942 million in 2000. Read the full article here.

Island Def Jam has laid off several employees including sales people and A&R’s. The label will also continue to slash underperforming acts from their roster.

According to Reuters EMI is seeking private equity backing to mount a bid for Bertelsmann’s music publishing holdings. This would allow EMI to retain the resources to bid separately for Warner Music.

British consumers are rewarded being the first in the world able to purchase songs instantly as they listen to them on digital radio by utilizing a new download service from UBC Media.

Koch Distribution has announced exclusive North American agreements with three independent record labels. Koch will handle releases from HBD Label Group which focuses on urban and electronic, gospel label Worldwide Music, Inc. and reggae label Taxi Records.

KOAR Higher Learning artist Fermata will be playing a sold out show at the Whiskey tonight (June 27), open to industry. Sony, Hollywood and TakeOver confirmed for attendance. Fermata has also picked up a slot on The Warped Tour, playing the Ventura, CA date on July 11.