BMG eyeing WMG's pubco

As Citigroup readies EMI for auction, as soon as this month according to reports, KKR-backed BMG Rights Management is already kicking the tires on Warner/Chappell Music according to the New York Post. While a number of suitors are expected to submit bids for all or part of EMI when the music group is taken to auction, if Len Blavatnik’s Access Industries comes out on top again, most expect that regulatory obstacles would see Warner Music’s pubco being sold, though some observers have Citi more likely to favor other interested parties due to fear of such regulatory scrutiny… A Digital Music News story this week revealed that digital music retailer eMusic has had little to no subscriber growth since 2007, even with the addition of catalogs from major labels. The service however, can point to an increase in revenue from its current subscribers, who are opting for higher-paying levels of membership. Also apparently on the horizon for eMusic is a cloud-based service – with CEO Adam Klein telling Billboard that they hope to launch it by the fourth quarter of this year… How many more companies will join those already in the cloud like Apple, Amazon and Google? Apparently Hewlett Packard is in the early stage of discussions with content owners, including major labels, for a service similar to iCloud, offering music, movies and TV shows… Meanwhile, MediaMemo reported today that Universal Music Group has signed on with Spotify in America, and while a deal with Warner Music Group is yet to be reached, sources have the two sides close to a deal as well… Elsewhere, Irving Azoff and Liberty Media boss John Malone are said to be considering taking Live Nation private, in an effort to restructure the company… And while News Corp.’s prospect of completely unloading MySpace don’t look good, according to a new report, the frontrunner among those in talks for a strategic partnership that would leave News Corp. with partial ownership, is an investment group which includes Activision Chairman and CEO Bobby Kotick.

Morris takes his talents to Sony

The big news this morning from within the big four music groups (soon to be three?), is the confirmation that outgoing Universal Music Group CEO Doug Morris will indeed take over the reigns as new chief executive at Sony Music on July 1st, as Rolf Schmidt-Holz departs at the end of this month. Sony Corp. chairman Howard Stringer will fill the role in the meantime. Morris held the role of CEO at UMG since 1995, before announcing a successor in Lucian Grainge at the beginning of last year. On the other side of the coin, RCA/Jive label chief Barry Weiss will also leave the building this week, as he takes a top spot in Grainge’s East Coast Universal label operation… Bloomberg reported this week that Warner Music Group, which recently put itself on the block with help from Goldman Sachs, has received ten offers so far including bids on its publishing division Warner/Chappell Music by Sony/ATV Music and KKR-backed BMG Rights Management, while Russian billionaire Len Blavatnik is seeking to acquire most of the company. UMG did not submit an offer, reportedly due to anti-trust concerns – though they may be interested in acquiring parts of the recorded music business… In what could be seen as a preemptive move as Spotify appears to be gearing up for a U.S. launch (including reportedly making hires), Rhapsody is offering a 60 day free trial for its streaming service… Ringtone company Thumbplay, who transitioned into the music subscription arena earlier than most current players, has been bought by Clear Channel. It appears that the new owners of the service intend to transition the service into online radio, utilizing the Thumbplay technology and talent and integrating it into Clear Channel’s current free iheartradio service… Elsewhere, Live Nation California prexy Rick Mueller is reportedly leaving and heading to rival AEG… MTV and Sony/ATV’s Extreme Music are launching Hype Production Music as the result of a new licensing partnership that will focus on emerging and independent artists… And despite continued turmoil in the digital music landscape, investors are once again starting to dump big cash in the chaotic space.

Rdio taps WBR's Cavallo

Music-streaming start up Rdio has raised $17.5million in new funding with a round led by Mangrove Partners. The company, founded by Janus Friis and Niklas Zennstrom of Skype notoriety, also announced the addition of Warner Bros. Records chief Rob Cavallo to its board of directors.  The addition of Cavallo is said to be an effort to “strengthen” relationships with the music industry. Rdio currently offers a two-tiered paid subscription service, which fits in with Warner Music Group ruler Edgar Bronfman Jr.’s stance on services offering free levels of access, as in they “will not be licensed” by WMG… Yesterday’s News Corp. earnings call has led to more reports of an impending sale of MySpace. Company executives are not really saying anything new from what’s already been reported over the previous weeks, this time it is just more official… Anschutz Entertainment Group has announced a new joint venture called Outbox Enterprises, which sees the promoter entering the ticketing arena. As a result of the regulatory judgement in the Live Nation merger with Ticketmaster, AEG is allowed to compete for ticket sales. The new venture will be headed by former Ticketmaster executive Fred Rosen who will act as CEO. The company plans on beginning to sell tickets through Outbox in the next six to twelve months… Elsewhere, Inc.com checks in the eMusic after last years customer kerfuffle over the addition of more major label catalogues to the once indie-only music service, as well increased prices and the departure of indie stalwart labels Domino, Merge and Beggars Group… And The Fader Fort, a staple of the SXSW music festival for the last decade, has announced a new sponsor this year in Fiat. They’ll also be streaming live performances in conjunction with, err, MySpace Music?

Become an Arena Act in the time it will take to get your free iPhone 4 Case

Lots of chatter continued over the weekend on the heels of two high profile presentations last week… Steve Jobs addressed the infamous antenna on Apple’s new iPhone 4 with a range of figures and explanations, including a comparison of other popular smartphones that were shown to be equally or more deficient in the same area that is raising huge concerns over the new iPhone.  The other phones mentioned included the Blackberry Bold, made by Research in Motion, who following the presentation issued a statement declaring, ”Apple’s claims about RIM products appear to be deliberate attempts to distort the public’s understanding of an antenna design issue and to deflect attention from Apple’s difficult situation.”… Elsewhere Live Nation is facing increased derision, adding to an already highly publicized poor summer concert climate, after last week’s investor presentation from Michael Rapino and Irving Azoff.  The presentation included one slide in particular that is getting a lot of industry attention for its illustration of the company’s “new model,” which has an artist’s trajectory going from relative anonymity to arena sell-out in just 3 months…

Interactive Grammy Show Sees Big Ratings

The 52nd annual Grammy Awards show on Sunday night reached its highest ratings since 2004, surely do in part to the show being more interactive than ever before thanks to staff and attendees use of Twitter, Facebook and other crowdsourcing features setup for fans… Terra Firma is back in the news and reportedly looking for its investors to pump additional millions into troubled EMI… In a recent LA Times Q&A with Tim Leiweke, the AEG chief executive  discusses how he sees a place for AEG to compete in the concert business even with the newly approved Ticketmaster – Live Nation merger…  And a new Billboard analysis looks at the potential benefits for ISP companies if they were to offer a music service to customers.

Apple's New Game-Changer?

No question about it, this week saw two stories dominate the headlines and bloglines and pretty much anywhere that covers music and media, and it wasn’t the Grammy’s… First was the announcement that the DOJ had approved the Ticketmaster – Live Nation merger, much quicker than most anticipated, with the result being the formation of Live Nation Entertainment.  As to be expected the reactions were plentiful and varied, including a thumbs up from influential artist manager Jim Guerinot, while Spaceland Productions founder Mitchell Frank and other indie promoters see reason for concern – both stories appearing this week in the L.A. Times music blog Pop & Hiss… The other widely reported and debated news this week was the unveiling of Apple’s new iPad. The announcement of the one-of-a-kind device was greeted with praise and skepticism, as most new Apple products do, including estimations as to what the iPad will mean for the music industry, how it will take down the Kindle, why a rebuilt iTunes is more important and Bob Lefsetz explains why he won’t be buying one.

Linkin Park charity releases digital compilation to benefit Haiti

A lot to stay on top of over this short week, so enjoy this special extended edition of our weekly recap…

More chatter about a possible new iTunes streaming service from Apple continued, fueled by Michael Robertson’s prediction that the service will come in the form of a version update allowing users to access their iTunes media library from anywhere via the proverbial “cloud”… The lineup for Coachella 2010 was announced, and headliners include Jay-Z, Muse, Gorillaz and Thom Yorke… Ad-supported download service Free All Music announced a deal with EMI, who joins Universal Music as the first major music companies to strike agreements with the start-up… Elsewhere, Sony and Warner Music appear to be engaged in an eMusic pricing battle… YouTube launched a new music discovery and playlist experiment… Comcast appears to be taking steps toward an a la carte music streaming service for internet and cable customers… Other ISP news includes a report that Virgin Media’s long delayed “unlimited” subscription service might be called MusicFish, it might not be unlimited and could be arriving this summer… It looks like Live Nation is putting its venues on the block in an effort to ease regulatory concerns over the Ticketmaster merger… And Prince revealed a new song “Purple and Gold” that he penned for his beloved Vikings - sorry Purple One, we’ll be rooting for the Saints…

** If you haven’t yet, make sure to visit www.musicforrelief.org, where Linkin Park took the “pay what you want” model to their charity’s digital album that benefits the crisis in Haiti. The band quickly assembled a compilation of unreleased songs from Peter Gabriel, Alanis Morissette, All-American Rejects and many others.  The effort saw a quick and impressive collaboration of artists, labels and publishers who all granted full gratis rights for the compilation, and over a holiday weekend no less.

Does Voyeurism have a taste?

Not So Fast > An article on Thedeal.com revealed that U.S. regulators were prepared to approve the merger of Ticketmaster and Live Nation, but other sources quickly dispelled the report saying both sides are prepared for litigation… (Reuters)

Sleeping Giant > New court documents reveal that after nearly 3 years Viacom’s $1 Billion copyright lawsuit against Google may soon see a conclusion… (CNET)

New Diggs > Style Section L.A. takes a tour of Dangerbird Records new Barbara Bestor-designed compound… (StyleSection)

Status Update> VitaminWater will soon be releasing a Facebook inspired new flavor called “Connect”… (TechCrunch)

On the Block > Philadelphia’s longtime bar and music venue the Khyber is up for sale… (PW)