Mommy and Daddy were right when they told you “Nothing is for Free” — “Free” always comes with a price tag. In this case, its about 12.5 Billion…..

According to a report released by IPI, rampant global piracy of recorded music has cost the U.S. $12.5 billion in economic output and 71,060 jobs annually.

The damaging result of music piracy:

— The U.S. economy loses $12.5 billion

— U.S. workers lose 71,060 jobs

— U.S. workers lose $2.7 billion in earnings, including $1.1 billion in earnings from workers in the sound recording industry or “downstream” retail industries, and $1.6 billion in earnings by workers in other U.S. industries; and

— The U.S. government loses at least $422 million in tax revenues, including $291 million in personal income tax and $131 million in lost corporate income and production taxes.

“Piracy harms not only the owners of intellectual property but also U.S. consumers and taxpayers,” says Stephen E. Siwek, author of the report and principal with Economists, Inc. “Moreover, the impact of music piracy appears to be intensifying.” (YAHOO)

Except for the music business, no other business in history has been seriously inflicted by criminal behavior…

KOAR recently talked about and blasted underground illegal site myspacemp3.org asking authorities and individuals in appropriate positions to sue the creator of the site and remove the site from the web.

Good news here. The illegal hack site myspacemp3.org which allowed users to rip streaming audio off of Myspace sites into MP3’s has been suspended.

The author and creator of the illegal site and code is based in Madrid and his name is Octavio Chango. Madrid-based author Octavio Chango blamed MySpace for shuttering the site and freezing his ISP account, and even offered email documentation to back his claims. “You are no longer welcome on our site, and if you make another site like myspacemp3 we will sue,” a cut-n-pasted email thread from MySpace reads. (DMN)

Separately, a source within Myspace confirmed the shutdown effort, and a representative strongly alluded to the enforcement move.

 

MTV Networks is merging its online digital-music offerings into a joint venture with RealNetworks in order to create a stronger competitor to Apples market-dominating iTunes Store.

This new move also appears to spell the end of MTV’s Urge digital service, launched in partnership with Microsoft. MTV’s Urge fell apart quickly with the lack of focus and few subscribers.

MTV has been investing in digital technology. They plan to invest at least $500 million in games, on top of acquisitions like that of Harmonix Music Systems the developer of the Guitar Hero game series. (WSJ)

Consumers need approximately three dominating digital retailers allowing them a couple of options.

Switchfoot has cut ties with Columbia Records and will release new music on an independent.

Virgin Megastore in NYC could close: Real estate developers have inked a deal to buy Virgin Megastores North America. Industry insiders say the sale would allow the developers Related and Vornado – which are already Virgin’s landlords at their Union Square and Times Square stores, to close the two stores where Virgin has long-term leases well below market rates. (NYPost)

Jordin Sparks will be the first American Idol winner not signed to the RCA/Arista/J Records system, the usual home base for music mogul Clive Davis’ artists. Instead, Sparks was moved to Jive Records.

Alternative act Anberlin have signed to Universal Republic and plan to release a new album mid – 2008.

The Disney Machine: Disney Channel’s “High School Musical 2” broke records Friday night to become the most-watched basic cable television event of all time according to TV Week. The broadcast drew 17.2 million viewers.

Also, Walt Disney Records soundtrack could crack 600k in first-week sales making it the highest debut of the year..

Orange County based alternative pop/rock band and KOAR favorite I Hate Kate have signed to Glassnote Records. The band is repped by Legal Ben McLane and Justin Maximov

50 Cent has blamed his bosses at Interscope Records for leaking the video for his new “Robin Thicke collaboration” on the internet, insisting that their actions have jeopardized his chances of turning the song into a hit single. Regardless, if the song is a real hit, a leak won’t prevent it from becoming a hit. Chill!

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