American Idol was hit with a historic TV upset Tuesday Night after ABC’s ‘Dancing with the Stars’ competition pulled in higher ratings than ‘American Idol’.

Dancing scored a 16.5 rating/25 share to Idol 16.3/25, in what insiders are calling a ‘photo-finish’.

The upset comes as the nations top-rated show experienced viewership erosion late in the season, at one point falling more than 15% from a year ago.

Simon didn’t look the same last night. He seemed bored, going through the motions, as he slightly criticized the karaoke singers.

Looks like Simon checked out a couple of weeks ago along with the rest of audience.

Prince is setting up residencies in Las Vegas and London over the summer…or should I say Prince is taking over? Starting June 15th, he will be playing 7 Fridays in a row at the Hollywood Roosevelt Hotel in Vegas. Shows will have extremely limited seating, a slew of surprise guests, and his private chef will be taking over the kitchen of the Roosevelt’s Dakota restaurant, turning it into a private night club for Prince and his guests, featuring Prince performing with a jazz ensemble.

In August, the pop legend will be taking this spectacle over seas to play a series of London dates, at an astonishingly affordable price! This is what KOAR has been talking about- giving fans MORE for LESS money.

Speaking of London (and less money)….It all trickles down. Watch Def Jam recording artist Lady Sovereign talk about her financial troubles…instead of performing a concert.

[video removed by Google/YouTube…I have no idea why. For those who missed it, Lady Sovereign kind of performed one song and then bitched to the audience for a while about how she is going to get evicted and she hates America. She then leaned against the DJ booth until the promoter told her to leave and the crowd booed her off the stage. While that video is no longer available, you can easily find others of her just ‘quitting’ mid-performance. That’s how she rolls.]

Good news for Internet Radio and webcasters…………..

SoundExchange has offered a deal to small webcasters to lower the royalty rates set by the Copyright Royalty Board’s decision in March

Small webcasters would pay royalties equal to 10% of all gross revenue up to $250,000, and 12% for all gross revenue above that amount. But only those webcasters that generate less than a specified amount of revenue and less than a certain amount of usage will be eligible for this lower rate.

“The net result of this proposal is that small webcasters would be guaranteed no increase in royalty payments for 13 years, from 1998-2010,” says Michael Huppe, general counsel for SoundExchange.

EMI has asked potential bidders to submit firm offers by May 23rd.

Warner believes that EMI’s Nicoli is unwilling to sell to Warners Edgar Bronfman. Sources claim Nicoli is likely to PLAY UP the regulatory uncertainty to the board and champion the best of competing offers.

UPDATE: Private Equity Firm Agrees to Acquire EMI for about 2.4 Billion Pounds

Terra Firma Capital Partners the private equity firm, agreed to buy EMI Group in a transaction valuing the record label for the Beatles and Coldplay at about 2.4 billion pounds ($4.7 billion). (Bloomberg)

EMI Revenue (In Billions)

2002 $4.8
2003 $4.3
2004 $4.2
2005 $3.97
2006 $4.1
2007 $3.5 **

Results are due Wednesday.

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Virgin Megastore will be closing stores in Chicago and Salt Lake City due to the recent woes inflicting the music biz. Both stores will be closing in early July.

A report published in August stated that Virgin Megastores has lost $260m in the past two years