Universal has announced that it will test the market for DRM-free, high-quality downloads offering them through digital retailers including Rhapsody, Amazon.com, Best Buy, Wal-Mart, Real Networks, Transworld, and PureTracks —but not the iTunes Music Store.
Universal will be selling the DRM-free downloads for 99 cents on other retail outlets instead of the $1.29 price for EMI’s high-quality, DRM-free music on iTunes.
According to sources, the label wanted to compare DRM-free sales from other outlets against protected sales from iTunes. Other sources conclude this is just simple a face off and that Universal wants to take away the iTunes monopoly by building more retail outlets for consumers. Universal refused to enter into any long-term licensing deals with iTunes, and opted for a month-to-month arrangement.
UMG says the test is designed to measure various factors such as consumer demand, price sensitivity and piracy effects of selling unprotected files versus those locked by DRM.
This is unknown territory — Will removing copyright protection increase sales? No one knows. I also believe consumers will typically gravitate to one site like iTunes when purchasing music. Regardless, this is just another step into the future.
 
AT&T censored portions of Pearl Jam’s live concert cybercast on Sunday.
Pearl Jam performed a portion of Pink Floyd’s “Another Brick in the Wall,” during which frontman Eddie Vedder sang, “George Bush, leave this world alone” and “George Bush, find yourself another home.” Those lyrics were missing from the broadcast.
Vedder also ranted against oil giant BP during the set, and later, brought a disabled Iraq War veteran onstage to call for an end to the conflict. Neither of these segments were edited.
AT&T attributed the bleeping to “a mistake by a Webcast vendor”. According to AT&T they do not censor performances, but they do consider editing excessive profanity.
The company also said it was “working with the band to post the song in its entirety,” a sentiment echoed by Pearl Jam on its official Web site (http://www.pearljam.com).
The incident has garnered hundreds of posts on Pearl Jam’s web forum as well as a response from the Future of Music Coalition, a strong advocate for “net neutrality” laws that ensure free speech online.
Lastly, Pearl Jam rants against the issue of censorship and the increasingly consolidated control of the media….
Major music labels who have taken a blow from shrinking CD sales are diversifying their business portfolio hoping to boost profits.
Typically Major Corporations focus on the core business. The Core business for major music labels is the CD. But since the CD has fallen, major labels like Universal Music and Warner Music Group announced investments in companies specializing in artist management or Web networking.
Major record companies have traditionally acted like venture capital firms by seeking out unknown talent, taking a risk in developing artists. If an artist has a HIT album, the record company can usually make a profit through CD sales. If the artist flops — no dice.
Although the record company cultivates the artist they make no money from the artist’s touring, personal appearances, advertising and merchandising.
With that said — Warner Music has invested around $110 million in the artist management company Front Line Management, whose clients include Jimmy Buffet, Neil Diamond and Christina Aguilera. Warner also has formed a joint venture called Brand Asset Group with Violator Management whose clients include rapper 50 Cent.
Universal Music has taken a stake in Loud.com, a hip-hop social networking site which offers competitions to win cash and recording contracts. The deal follows an $88 million deal by Universal to buy British management and merchandising firm Sanctuary, whose artists include James Blunt and Elton John.
There is no doubt that major music labels need to broaden their business to offset the decline in CD sales. But major corporations who choose to stray beyond their CORE business must be cautious.
Are labels familiar with artist personal management? How will they work with NEW and OLD talent? what will the percentages look like?
Although the road map in question, at least the future of music is in progress.(Reuters)
The first leg of the Police reunion tour has grossed $107,592,002 from 38 shows that drew 929,941 people.
Is a blurb and a link on a well-read mp3 blog is more valuable to small indie band than modest airplay on a small- or mid-size college station? Read full article here, via coolfer.
Shares of Warner Music surged as much as 21 percent after a newspaper reported that it may be taken private and an analyst upgraded his rating. Warner’s owners may take the company private, the New York Post reported today.Top Current Records…….
Korn
Untitled
TW 123,142
White Stripes
Icky Thump
TW 24,784
Total 499,426
Starting Line
Direction
TW 20,207
Paramore
Riot!
TW 15,555
Total 144,767
Flyleaf
TW 10,181
Total 663,549
The Used
Lies for the Liars
TW 6,207
Total 216,650
The Almost
Southern Weather
TW 6,255
Total 144,909
Overall, album sales are down 14% and Digital tracks are up 48%.
According to sources Britney Spears has hired former Kelly Clarkson manager Jeff Kwatinez in attempt to help resurrect her career. (TMZ)
CLICK HERE to view the list of nominees for the 2007 MTV Video Music Awards.
Korns new ‘unititled’ disc is expected to sell 125-150k first week. I didn’t see much promotion on the new record. The record was produced by British programmer/remixer Atticus Ross with The Matrix.
Sirius CEO Mel Karmazin announced a plan to offer a la carte programming for the post-XM-merger. NAB calls the pricing scheme a SHAM. According to the NAB’s results, under every programming package offered with a la carte pricing, consumers will pay out a higher per-channel price.
Newsletter