The Silicon Valley article discusses the downfall of Warner stock and retailers cutting back on floorspace for CD’s. Some think big boxes may cut more than 30% of dedicated music space.

If you look at the history of CD sales physical outlets have changed throughout the years. The record biz has never been in the situation of figuring out where to sell music.

The record industry is making 1/10 of what they could be making. They are selling songs rather than an album. Music is in the digital age, the outlets will be digital.

We have two people fighting. The label wants to sell at retail and Apple wants to sell digitally.

The body of work from an artist is not judged anymore. Its all about the song and the song sales. Until the psychology of consumer is more concerned about the body of work, you will see dramatic changes in retail space.

It’s no wonder the record biz is in the situation because the last couple of years the album content has been de-valued. Even prior to entering the digital age, columnists and reviewers would write that only one or two great songs were on an album setting the stage for a singles world.

EMI removes Radiohead Ad: The saga between Radiohead and EMI continue when the band’s former label removed a misleading ad for the group’s back catalogue from the internet.

Anyone typing in Radiohead into Google would see an ad at the top of the search results reading: “Radiohead – New Album ‘Rainbow’ now available as boxset”.

The ad was not directed the “discbox” edition of In Rainbows but to a website where EMI subsidiary Parlophone is selling a box-set of the seven albums Radiohead recorded while they were still signed to the label.

Its been said that EMI is trying to compete with its former charges’ independent release. While EMI has denied this, the ad (visible in a screengrab from Friday, above) raises new questions about the label’s
motives. (The Guardian)

Are Games More Relevant Than Radio? Guitar Hero III sold over $115 million in its first week, making it the best launch in the company’s history. Not only is Guitar Hero popular among gamers but it also exposes new music. For instance, Roadrunner Records said that sales of Dragon Force’s album “Inhuman Rampage” increased 126% week-on-week in the wake of Guitar Hero III’s release. Slipknot, another Roadrunner artist featured in the game, also saw its album sales increase. EA’s Steve Schnur asserted that games were now more relevant than radio when it comes to promoting new music.

According the NY Post, Terra Firma CEO Guy Hands is telling prospective partners that they can nearly quadruple their money in the struggling major label and cash out within five years.

Terra Firma plans to improve its EMI investment by cutting costs…

The cost cutting includes reducing A&R and marketing costs by 58 million by using social networks and user generated web sites like Myspace to discover and promote talent, cut $31 million in sales and distribution, and improve the recorded music businesses’ cash flow by driving over $700 million in from
online and mobile music. Terra Firma also has $100 million set aside for purchases of small indie labels. (NY Post)

360 Deals: Major music companies are offering the highly debated 360 deals to new artists. Artists will share touring and merchandising profits in return for more career support from the label. Check out the New York Times article ‘The New Deal: Band as Brand’. Jeff Leeds discusses the success of Paramore.

The Saga continues between Prince and his Fans: Last week Prince and his lawyers sent out legal letters to ‘Prince’ fan sites asking them for compensation for using photos without permission. Now the pop diva has posted a funk jam in retaliation to his fans that set up ‘Prince Fans United‘. Prince proclaims in his jingle ‘ “I don’t care what people may say, I ain’t gonna let it ruin my day.” American Idol judge Simon Cowell called Prince selfish and disrespectful. I couldn’t agree more, also, the dude seems bored.

We don’t particularly care, but you can view the original choreography for Britney Spears’ performance of Gimme More” that has founds its place on the blogosphere.

New Music: You can stream a new track from indie rock band Hello Vegas. Also listen to the track ‘My Tongue is Tied‘.

The new Duran Duran album ‘Red Carpet Massacre’ can now be streamed. Duran Duran frontman Simon Le Bon wanted a hit record and top 40 radio play. ‘We wanted to get played on U.S. Top 40 radio, and it seemed that the most direct route was to exercise our funk muscle. So we said, “Right, let’s get Timbaland.” What passionless statement. My goodness! Many artists today have no shame. Duran Duran should have took a vacation on a remote island and wrote a real record because the new stuff isn’t nearly as good as Rio and save a Prayer. The hardwork and effort was all done in vain!

Signings: Republic Universal rock artist Fair to Midland have signed a co-publishing agreement with Warner Chappell Music. Sounds Under Radio who appeared on Spiderman 3 sountrack signed to Epic Records.

Google in Talks with Simon Fuller: More people are watching TV on-line since new technology is allowing users to download video footage. PCs will eventually merge with TV sets, and the biggest companies, including Microsoft, Apple and Google will enter the market. Google is already talking to Simon Fuller the creator of Pop Idol and American Idol about a joint venture that could change the way TV is watched over the internet. (Guardian)

Myspace has been inflicted with the biggest and most damaging virus to date. This new viral scam targets the younger users, and promises victims a free $500 Macy’s gift card. The headlines include “Hey dude, check it out! You ain’t gunna believe this!” or “i’m just hittin you up, as a friend, to fill you in on this exclusive deal to get a FREE $500 Macy’s Gift Card, yes, FREE!

The viral scam, which targets the site’s younger users, promises victims a free $500 Macy’s gift card. The spam scam steals the user MySpace identity and friends e-mails and posts comments on their profiles.

“It is an epidemic on MySpace,” PC Magazine Executive Editor Jeremy Kaplan . “It is a big problem particularly because of the pervasiveness of MySpace. Kaplan says he doesn’t think MySpace has done much to help solve the problem.

Alicia Keys’ Myspace page was recently hacked. Check out this video that shows how these viral spams incorporate malicious codes.

The Bottom Line: More and more artists are frustrated over Myspace and its ability to perform simple tasks. Updating the touring schedule, writing blogs, and communicating with fans can be a headache. Attacks on Myspace are rising as well as programs invented by thieves that allows users to steal songs on the Myspace music player. The techs at Myspace will be busy for a long time…