Wednesday Bits & Pieces: Playlist.com, Elevation Partners + Pandora & More…
News of Playlist.com’s bankruptcy filing this week did not come as a shock to those following the start-up, who is now headed down a similar path of other online music services in recent times. Following Chapter 11 filing, which was spun by the company as a “breathing spell” – presumably from litigation (3 of the 4 major label groups had filed lawsuits) – further reports revealed just how much Playlist owes in royalty costs to its top creditors, who include Universal Music Group, Warner Music Group, Sony Music, EMI Music as well as indie label network Merlin and ASCAP. And that “breathing spell” apparently includes funding a restructuring effort with cash from its biggest, and sole secure creditor, UMG, who is not on the same page… Elsewhere, it appears in talks with television companies, Apple is nearing an agreement with Disney for 99-cent TV show rentals via iTunes… Yesterday it was tipped by TechCrunch that private-equity firm Elevation Partners, who counts Bono among its directors, would be investing in Pandora in the range of $100 million, though both sides are remaining quiet at the moment… And check out a profile of Jason Hirschhorn on Silicon Alley Insider, where he discusses his time at MTV, MySpace and what’s next…
More Google Music Clues Surface
More clues are surfacing as to what form the impending Google Music service will take, as Epicenter reports that in addition to a paid on-demand streaming service, there will also be a free option similar in style to Pandora. The free option would include audio advertisements intermixed with streaming music, and it may be available via YouTube as well. This is the latest in a string of information about the new music initiative from Google that has come to light in the last week. Here’s a recap of what is known so far… Last week TechCrunch reports that Google has hired former Davis Shapiro Lewit & Hayes attorney Elizabeth Moody to assist in its industry negotiations… The following day Moody’s hiring is confirmed in a Billboard Q&A… And on Monday the New York Post reported that Google is in the midst of accelerated talks with the Harry Fox Agency. Stay tuned…
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In Case You Missed It: Reading Recap
Buzzmedia Adds New Music Sites to Network
If issuing a press-release on a holiday can be considered an attempt to downplay a story, that wasn’t the case with the announcement on Monday of Buzzmedia’s addition of a handful of music sites to their growing stable. The new site additions including PureVolume, Popmatters, RCRDLBL, Gorilla vs. Bear and other highly-trafficked music properties got extra coverage because of the fairly confusing details. Are they acquisitions, ad-partnerships, lease with an option-to-buy, or a mixture of all three? It appears to be the latter… The New York Post was the first to report that publisher Bug Music is being shopped by JPMorgan for $300-million, and that those in the hunt include Sony/ATV, Universal Music, Warner Music and new (old) player KKR/BMG. Billboard chimed-in to include Evergreen Copyrights, Chrysalis Music and an unnamed financial firm as other possible suitors… As AT&T revealed that they would be popping a cap on customers unlimited internet, some were raising concerns about services like Pandora being seriously affected by the change, though further reporting showed the percentage of current users who would take a streaming hit was negligible… The founders of Kazaa and Skype unleashed their latest service Rdio Wednesday night at midnight. The cloud music service operates like a music-only Twitter and currently is only available via invite… Elsewhere, Vevo and boss Rio Caraeff are celebrating being the top spot online for music-videos… Alan McGee gives his 2-cents on the state of EMI Music… And is Google naming its still-to-be-unveiled iTunes competitor Google Music? Probably…
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In Case You Missed It: Reading Recap
Zimbalam enters U.S. market - What will it mean for Tunecore?
The New York Times‘ recent profile on Pandora examines how the internet radio company avoided the start-up graveyard, became profitable and whether an IPO is imminent… A report commissioned by trade group BPI on behalf of Universal Music Group says that bundled digital music services could earn U.K. ISP’s roughly $155 million in extra earnings… New IFPI report breaks down the cost to record label’s for investing in music talent; total reaches roughly $5 billion annually – $1 million is the average price-tag to “break” a new artist… EMI Music CEO Elio Leoni-Sceti is out as of March 31st. Charles Allen, the former CEO of British broadcaster ITV, is set to take over the position… Europe’s Zimbalam, a flat fee digital distribution service backed by Believe Digital, is entering the U.S. market and will use upcoming SXSW for promotional offer.
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In Case You Missed It: Reading Recap
Sellaband Gets New Owners
A lot of talk recently about Sellaband, the music startup that allows fans to fund projects, first with the revelation that Public Enemy had fallen severely short of their proposed $250K goal for their next album and was even losing fan investors. That was quickly followed by speculation that Sellaband itself was out of cash and on the brink of bankruptcy, which was soon confirmed, but quickly reversed as German investors stepped in to buy the company… At the Digital Music Forum East, an analyst with the NPD group said “We’re eating our young” – claiming that services like Spotify don’t generate music sales while a company like Pandora does. Spotify was quick to respond stating there is evidence that proves the opposite… Music video site Vevo continues to show strong numbers, a quarter of them apparently owed just to Lady Gaga… The BBC announced that among a broad range of changes, it was closing alternative music station 6 Music, though it looks like Absolute Radio (formerly Virgin Radio) will make a bid on the station… Elsewhere Music Mastermind the virtual music creation startup co-founded by Matt Serletic announced $4.85-million in Series A funding… And The Agency Group agent Dave Shapiro in partnership with Rise Records has launched his own label Velocity Records…
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