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Business News Week In Five
The music business week in five – 6 Jan 2012
By Chris Cooke | Published on Friday 6 January 2012
So that was Christmas. Did you enjoy it? It all seems an awfully long time ago now, doesn’t it? In fact, I’m starting to suspect it never actually happened. But I can confirm some shit did go down in the music business in the two weeks since the CMU Daily last popped up in your inbox, and in case you’ve taken your eye off the ball over the festive break, here’s the five biggest things that occured.
01: Beyond Oblivion bit the dust, before even launching. The ambitious and well financed digital start-up, which hoped to combine a scan-and-match locker with an all-you-can-eat download offer and personalised radio platform, funded by a one-off charge attached to the software than enabled it all, or any device with the technology pre-installed, announced it was shutting down last weekend. The New York-based digital firm had already started scaling down its operations after the already delayed spring 2012 launch date started to look less and less likely. The challenge for Beyond Oblivion, or Boinc as it was to be known, was persuading both labels to license the all-you-can-eat offer, and tech firms to bundle the technology. It’s thought there were problems on both sides. CMU report | FT report
02: EMI joined the Grooveshark litigation party, because, well, why not? Universal, Sony and Warner are already suing the controversial streaming platform over allegations that Grooveshark staff, as well as users, routinely upload unlicensed music to the platform. EMI has a licensing deal in place with the digital firm, and is suing for breach of contract in relation to that deal, claiming it is owed royalties and data from the company. Grooveshark said the lawsuit was a contractual dispute it hoped to clear up in the near future. CMU report | New York Times report
03: Peter Frampton joined the digital royalties squabble, because, well, why not? The British musician reckons he should be earning a higher royalty on the digital sales of his Universal-owned catalogue because they should be treated as licensing rather than record sales income, which would pay out a higher share to the artist under his pre-internet record contract. Frampton joins Rob Zombie, Chuck D and the estate of Rick James in suing Universal over digital royalties. They all hope a ruling in a similar dispute over digital revenue between Universal and Eminem producers FBT Productions, which went in the producers’ favour, will provide a precedent that will force labels to reclassify their digital revenues. Universal’s lawyers insist no such general precedent has been set. BBC report
04: Bidding began for the MAMA Group. HMV confirmed it was considering selling its live division last month, and it’s thought at least two equity groups and AEG Live have expressed an interest in acquiring the venue owner and festival promoter. MAMA co-founder and current CEO Dean James is also expected to attempt a management buy out. HMV needs the cash to reduce its debts, and faces a tricky month, with figures due to be released next week expected to show another decline in sales during the all-important pre-Christmas quarter. CMU report | FT report
05: The BPI confirmed record sales were down overall in the UK last year, despite another record breaking year for singles sales, and significant growth in digital album sales. CD sales continued to slump though, meaning the overall recorded music market was down. Though some have pointed out the BPI/Official Charts Company data does not include revenue from streaming services, or other revenue streams labels may now have a share of via 360 degree style deals with artists. Nevertheless, the BPI called on government to get its arse into gear over the as-yet-un-actioned provisions of the Digital Economy Act designed to combat illegal file-sharing. CMU report | Music Ally commentary
And that’s your lot. Except to say a big bold Happy New Year one and all.
Chris Cooke
Business Editor, CMU
