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Audio/Video, Web

Internet Radio Will Continue, Thanks to New Agreement With Labels


After years of quibbling with record labels, sweating a 2007 government-proposed royalty hike, and dealing with their increasingly uncertain future, Internet radio stations are finally off the hook, the New York Times reports.

These stations -- among which Pandora and Slacker are probably the best known -- enable users to enjoy custom-tailored streams of music, free of charge. Because the sites receive most of their revenue from advertising, and from quasi-commissions paid by online music retailers like iTunes and Amazon when listeners purchase a song, the formerly proposed royalty increase of $0.19 per song presented financial hurdles widely thought to be insurmountable.

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Audio/Video, Web

Indie Folksters Fleet Foxes Thank Filesharing for Success

No amount of marketing genius or label support has helped Fleet Foxes, says Robin Pecknold, lead singer of the indie-pop band. Instead, he thanks the Internet, which allowed thousands of fans to share 'Fleet Foxes,' the band's wildly critically acclaimed self-titled 2008 album. According to TorrentFreak, Pecknold admitted to the BBC, "I've downloaded hundreds and hundreds of records - why would I care if somebody downloads ours?"

Pecknold, aged 23, found his tastes and sound changing when he was exposed to filesharing, which allowed him to 'steal' most of the music that influences him. "I've discovered so much through that medium," he told the BBC. The singer added. "That will be true of any artist my age."

Of course, recording labels may disagree, but the fact is that more and more artists are realizing that torrents and filesharing (get with it, Metallica) mean more fans, more exposure, and possibly more success -- and that the music industry has changed for good. [From: BBC News and TorrentFreak]

RIAA Once Again Suing File-Sharers


Despite the Recording Industry Association of America's (RIAA) promise to Congress in August 2008 that it would not start any new file-sharing lawsuits, the music industry lobby filed at least three new cases in April.

It's not really a good idea to lie to Congress, so the RIAA is claiming that these new cases are actually settlements of existing cases. Basically, the RIAA has a number of extant John Doe lawsuits that are awaiting identification information subpoenaed from Internet Service Providers. When the info comes in, the RIAA then files a new named lawsuit against the offender. What's so baffling is why the RIAA is choosing to pursue these cases, especially after its public announcement that it is ditching individual suits and moving towards a "three strikes and you're off the Internet" policy.

To us, this is a bonehead move, since the RIAA needs Congress on its side to force Internet providers to cut off paying customers... the RIAA should be making nice with America, not enraging us with more frivolous and hypocritical lawsuits. [From: Ars Technica]

Audio/Video, Web

Music Pirates More Likely to Buy Music, Study Says



In a twist on conventional logic, a new study reported in the Guardian has found that piracy, so often blamed for the continual downturn in music sales, may actually be sustaining the industry.

The surprising report, from the BI Norwegian School of Management, was based on a study of approximately 2,000 online music listeners over the age of 15. Researchers discovered that the people who admitted to downloading free music (legally or illegaly) were actually 10 times more likely than their law-abiding peers to pay good money for downloadable music. For the sake of accuracy, all of those who claimed to have bought music were required to present proofs of purchase. According to the Guardian, these figures -- if accurate -- identify pirates as the largest segment of online music consumers.

We aren't mathematicians, but it would seem that these so-called "pirates" are the ones putting the most "booty" in the music industry's coffers. The gray area in this never-ending dispute just got a little broader. [From: Guardian.co.uk]

Celebrities

Paul McCartney Says Jailed Pirate Bay Founders "Got to Pay"



Last week, the four founders of torrent site Pirate Bay got what they deserved, at least according to Sir Paul McCartney. Of the downloading pioneers' being found guilty of copyright violation in a Swedish court, the songwriter and former Beatle told the BBC's Newsbeat, "If you get on a bus you've got to pay. And I think it's fair, you should pay your ticket."

The Pirate Bay, a Web site on which users are able to exchange music, movies, or software as torrent files, has been only one of the many thorns in the side of the music industry in recent years. The site offers millions of files to users, free of charge, which is the legal issue that has long been questioned (music companies want royalties/money for these sorts of transactions). Those questions of legality have now been answered, apparently; the founders have been slapped with a ruling that demands $4.5 million be paid to corporations like Warner Bros. and Sony Music Entertainment. The four men -- Frederik Neij, Gottfrid Svartholm Warg, Carl Lundstrom and Peter Sunde -- will appeal the decision, according to Newsbeat.

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Audio/Video

Borders to Quit Selling CDs and DVDs?



The book and music retailer Borders may soon be removing CDs and DVDs from its stores' shelves, according to a report in the Consumerist.

Apparently, this past Monday, a Borders employee wrote the Consumerist, claiming that "most Borders [stores]" will remove 75-percent of their CD and DVD inventory over the next couple of months. According to this tipster, whose veracity has not been confirmed, CDs and DVDs will be gradually, and drastically, marked down over the next seven weeks in order to clear the shelves.

Do you still buy CDs?



With the closings of Circuit City and Tower Records stores, and the upcoming closing of Virgin Megastores, the success of iTunes, and the illegal download boom, we wouldn't at all be surprised if this rumor winds up being true. That being said, we're not in the business of counting chickens, so why not let us check out these supposed mark-downs first? [From: Consumerist Via: Blogging Stocks]


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Audio/Video, Computers, MySpace, Google

Radiohead, Robbie Williams and Others Unite Against YouTube



Some of the most popular musicians in the UK have decided to collectively protest what they see as poor treatment both from online music streaming sites (YouTube, MySpace, etc) and from the record companies that do business with them, according to CNET. Essentially, the artists have joined to create the most creatively inspired group of lobbyists, ever.

The Featured Artists Coalition (FAC) is comprised of, among others, Radiohead, KT Tunstall and Robbie Williams, and was organized by Billy Bragg. Tomorrow will be the coalition's inaugural meeting, and the artists involved are hoping it will result in greater profits for them (they sometimes receive no compensation whatsoever from streamed music) and in a better understanding of how contracts should be structured in an increasingly digitally-dominated era.

The conference, set to take place today at a secret location in London's West End, comes days after YouTube blocked music videos from streaming in the UK. Prior to the decision, YouTube had been in negotiations with Britain's Performance Rights Society (PRS), which collects royalties for the UK's music industry, but found their demands unpalatable. Pandora has already pulled out of the country due to what they view as prohibitive compensation demands, and MySpace is expected to follow suit. The PRS maintains that their demands are fair, considering the massive amount of ad revenue that streaming music generates for Google (who owns YouTube) and other popular sites.

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Audio/Video, Computers, Celebrities

Neil Young Not Happy With YouTube


Yesterday, Neil Young fired a shot at YouTube, claiming that the Google-owned purveyor of online video has unfairly treated artists signed to the Warner Music Group.

According to Young's blog (cleverly titled 'NY Times'), YouTube has underpaid Warner artists, whose peers on other record labels have been getting larger licensing checks. Young points out that, because Warner Reprise was one of the first labels to cooperate with YouTube, its contract did not wind up being as attractive as those signed later on by more cautious labels.

Looking for something in the way of a solution, Young wrote, "If all artists were compensated equally, and the people decided who had the hits and misses by virtue of number of downloads and plays, there would be no grounds for disagreement that would cause the facilitator of the art to break the conduit between an artist and an audience."

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Audio/Video, Home Video, Portable Audio

Digital Music Sales Surpass CD Sales at Atlantic



Yep, it finally happened. One label has come forward and admitted that, for the first time, digital sales of its music have surpassed CDs. While many pundits asserted that loosing tunes via tiny downloadable files would instantaneously cause the deep-pocketed record labels to crumble as piracy ran rampant, the numbers tell a different story. In fact, music sales overall have declined from $14.6 billion in 1999 to $10.1 billion this year, and it's expected to shrink further.

But for Atlantic, moving tracks on the information superhighway has proven quite successful; last quarter, digital sales accounted for 51% of its revenue, while CD sales still make up over two-thirds of all music sales industry-wide. There's no real indication as to why Atlantic seems to have that digital charm while everyone else is still clinging tight to old world business models, but it's sure nice to see this side of the equation thriving.

Now, about those DRM-free downloads across the board...

[Image courtesy of Dexondaz]

Audio/Video, Computers

'Dancing Baby' Lawsuit Turns Tables on Music Industry

It's a sad state of affairs for the music industry these days. It's making far more news for its idiotic statements and unnecessarily huge lawsuits than for discovering and nurturing fresh new talent. This time, though, it's the industry that's on the receiving end of a lawsuit, being taken to court by a mother whose video was removed from YouTube by Universal Music Corp because of the song playing in the background.

Stephanie Lenz of Gallitzin, Pa. posted a 30-second clip of her baby dancing to 'Let's Go Crazy' by Prince, which can be heard playing in the background of the video -- turn your speakers up and listen closely if you want to identify the track yourself. Universal claimed the video violates copyright and YouTube removed the vid, but Lenz (and the Electronic Frontier Foundation (EFF)) are fighting back, claiming the background music is fair use. The lawsuit is now pending and, as you can see above, the video is back on YouTube, for the moment. We'll be following this one closely. [From: NewsVine]

Audio/Video

Starbucks Eliminating CDs and iTunes Gift Cards From Its Shops

Starbucks Feels the Music Industry's PainWith file sharing, the death of independent radio, and out of touch record labels, the music industry hasn't exactly been flourishing lately. CD sales are way down, and while online music sales are way up, they're not exactly filling the gap. Unsurprising, then, that coffee uber-franchise Starbucks is scrapping its foray into the music distribution business, focusing instead on what it does best: coffee.

Starbucks had aspirations of turning into not just a cool place to get hot Venti Lattes in the morning, but also a place to check out new artists and buy a CD or three while you sipped and chatted. Those plans started with a rack of CDs at stores, along with iTunes gift cards, and a new music label. But when it was revealed that each store was selling only two discs per day, it was clear that people were coming for the caffeine kick and little else.

The chain will still continue to sell a few CDs here and there, but its upstart music label has been sold off, leaving fledgling bands with one fewer venue to get their music out there. And thus the cycle continues. [Source: Silicon Alley Insider]

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