News Bytes: BigChampagne acquired by Live Nation, Rara-who?, Sony & Warner join Grooveshark fray & more
Yesterday evening our Twitter feed was filling up with congratulations for BigChampagne, and founders Eric Garland and Joe Fleischer, following the announcement that Live Nation had acquired the pioneering media measurement operation. While not well known outside of entertainment biz circles, the company is anything but a flash-in-the-pan tech start up – having celebrated its 10th anniversary this year and launching the Ultimate Chart last year, not to mention having their analysis frequently cited and quoted by The New York Times, The Wall Street Journal, USA Today and many other publications. Tip of the cap indeed. For more information about how BigChampagne began and an overall interesting read, check our Q&A with Eric Garland from 2009, here… A new streaming music service surfaced this week from the founder of Omnifone. The service is called Rara and it appears to be targeting the segment of online music consumers who want to use a streaming service, but find Spotify, Rdio, MOG and others… too complicated? The service is launching with the help of some built-in links on select HP computers and a discounted 3-month trial price of $0.99 per month… Meanwhile, Sony and Warner Music are reportedly joining Universal Music Group in taking legal action against online music service Grooveshark… The bizarre story of the Megaupload song and video that featured Will.I.Am and a number of other celebrities and artists lauding the file-transfering service, takes another strange turn, Hollywood Esq. has the details… Check marked in the ‘plus’ column for Spotify this week, it was revealed that Arcade Fire’s catalog would now be available on the service in all its current territories. This follows headlines that the new Black Keys album is not being made available on any streaming music services, for now… And for an streaming availability scorecard, Wired published a side-by-side comparison of content exclusive to either Spotify or Rdio.
Digital Round Up: More Spotify, Rhapsody + Napster, Rdio goes free & more…
There seems to be quite a bit of optimism lately in the realm of digital music and what the future holds for subscription services. So far 2011’s album sales are already up from the previous year, with a big bump from digital, and at least one major label is claiming that they’ve finally figured out “free”. Glassnote artist Mumford & Sons became the third artist ever to sell 1 million digital albums, and even MTV has announced a second O Music Awards show, celebrating music and technology, which is set for October 31st… Spotify was quick to release new user data within only a couple months of launching its service in the U.S., and while they are clearing unclear in terms of paying versus free and how many are U.S.-only as opposed the world-wide, the overall statement is that a lot of people are trying out the service. The announcements in the music arena made during Facebook’s recent f8 conference also helped boost the outlook of not only Spotify, but a number of other digital music services including MOG, Rdio and iHeartRadio that were also included in the social networks big changes. And while most eyes remain on the Swedish-start up, the competition continues to counter with new moves of their own. Rdio announced this week that it will be launching a free on-demand streaming service, that has no ads, and an unspecified limit on free-listening, which follows a similar move by MOG… Meanwhile, Rhapsody has acquired Napster from Best Buy, in a purchase that will raise the longtime streaming service’s plateauing numbers… Elsewhere, Apple revealed during their press event on Tuesday that its new iCloud service will be extended to Europe, following recent reports that the company was seeking worldwide music rights from labels and publishers… And after only a few months as the new owners of MySpace, Specific Media held presentations for top-level advertisers at Radio City Music Hall on Monday, trying to generate excitement for the site, which will be focused primarily on music and video content. Creative partner and investor, Justin Timberlake (who has also been tapped to play Neil Bogart in an upcoming biopic of the Casablanca Records co-founder) was on hand for the presentations as well.
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Bits & Pieces: Live Nation + UMG, Facebook’s f8 Conference & more…
Monday afternoon saw the official news of a major deal that has been in the works for months that unites Live Nation Entertainment and Universal Music Group in a new pact joining UMG’s management properties, including Sanctuary, Twenty First Artist (and presumably the new producer management arm Twenty First Republic that was formed earlier this year with World’s End) and 5B Artist Management, all under LN’s Front Line Management… Apprehension by banks to finance private-equity firms in buyouts and mergers is growing, according to an WSJ article this week, and that might mean the stable of bidders for EMI is shrinking. It might also mean the likelihood of the music group being sold intact is also lessening… Tomorrow is Facebook’s big f8 conference, where they will announce many new features and major redesigns, and music fans are looking forward to the expected integration of new streaming services like Spotify, MOG and Rdio. Some are expecting Pandora to be added to that list as well, given the redesigned and relaunched player from the web radio service today, which includes among other things increased sharing capabilities and the removal of the cap on free-listening hours. Exactly how seamless the integration of media services into the social network is unclear, as MediaMemo points out, FB was originally planing on allowing users to access music and video services without ever leaving the site, however now that has changed. Announced speakers and panelists at the conference will include CEO’s from Spotify and Turntable.fm along with Clear Channel Chairman’s Bob Pittman who has been busy promoting iHeartRadio and manager Troy Carter among many others… Elsewhere, video site Vimeo has launched a Music Store in a new partnership with Audiosocket, that will help video creators easily find and license music… R.E.M. is calling it quits after three decades… Van Halen is reportedly ending their longtime relationship with Warner Bros. Records and heading to Columbia Records… And Jeremy Summers has been named EVP/Chief Marketing Officer at Interscope Geffen A&M.
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Digital Music Round Up: Turntable.fm seeks label deals, MOG & Rdio go free, iHeartRadio vs. Pandora & more…
MOG launches free music service
In addition to revealing more details about investors in the recent funding round, Turntable.fm has also announced that the company is indeed seeking licensing deal with the four major label groups as well as indie labels. This would help the service grow internationally according to CEO Billy Chasen, presumably in addition to offering new and more robust features that licenses would allow for. It appears Turntable is attempting to forge a new kind of licensing deal with labels, something that would fall in between the low-rates that web radio services like Pandora pay and higher ones paid by on-demand services like Spotify… Music streaming service MOG launched a new free ad-supported version of the service called FreePlay yesterday, in a what can be seen as a direct move against Spotify. The concept puts a twist on the freemium model, by giving free-users a “gas tank” of music, which they can refill in perpetuity through various actions like listening, sharing with friends, making playlists, and exploring MOG. A possible leg-up for the new service, will be utilizing its large blog-directory, MOG Music Network, with integrated blogs now able to share songs and playlists with readers via FreePlay tools… Rdio is also releasing a free version of their music service, though details are still few. It’s expected that more information will be disclosed when Facebook reveals its new music-plans next week at its f8 conference; Rdio along with MOG and Spotify are all expected to be partners in the new FB music features – Deezer is also expected to be announced as a Facebook Music partner in Europe… On the heels of all the streaming-music announcements this week, the results of a new study commissioned by mp3-retailer eMusic were released, and they show that 91% of those polled still prefer to own their music, while 76% use streaming services to discover music before buying. More details from the study are here… Meanwhile, Clear Channel has seriously bolstered its online radio service iHeartRadio after recently acquiring Thumbplay, and the company is quickly taking shots at Pandora, who until now has not faced any serious competition in the non-interactive web-radio space. Clear Channel media chief Bob Pittman told Forbes that he doesn’t see Pandora’s business as a “free-standing platform,” and that more functionality will continually be added to iHeartRadio, including possible features similar to Turntable.fm.
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Spotify’s Success in U.S. a Priority for Record Labels [UPDATED]
Multiple reports have Spotify launching in the U.S. this week, with the most recent scuttlebutt claiming the release will be invite-only initially, with members allowed to distribute invites as well – a strategy that has been employed by other notable services such as Gmail. A splash-page that went up last week allows people in the U.S. to signup to receive an invite to use Spotify “soon,” and while there has been no official announcement about a Warner Music licensing deal, it is believed to be as good as done… More details as to what the startup is planning for the U.S. were summarized on AllThingsD from ad pitch materials obtained, which include a target figure of 50 million users in the first year, with an estimated 150 million Facebook users that “will start to see music on their feeds” exposing them to the new service. That is far from an official (or exclusive) deal between the two companies though, and details about how the service will actually integrate with Facebook are still sketchy at best. Meanwhile it appears that other similar services like Rdio and Rhapsody are looking to incorporate functionality with the social network as well. Spotify’s deck also mentions the massive amount of free publicity the startup has already received – now over two years of speculation and coverage about a U.S. version – and will continue to get when the launch is official. Even with all that, and presumably more up their sleeve, many are questioning the lofty first year objective. Using the service’s existing European numbers as the only available measurement, it is indeed difficult to conceive of the target user-base being reached so quickly… However, in addition to Facebook, significant publicity and even telecom carrier tie-ups being rumored, an important aspect being overlooked by many is the record labels themselves. Speaking with label folks familiar with the situation, the once reticent labels are now heavily getting behind the service. While the licensing agreements are the sticking point in just getting off the ground, it’s the additional marketing and promotional programs that can become a major factor in succeeding. There are other new music startups already operating that offer essentially the same major functionality as Spotify, but according to those in the know, there has not been another digital music service that the labels have lined-up behind this much since iTunes…
[UPDATE: The service officially launched the morning of Thursday, July 14, and the invites are for access to the 'free' ad-version only, the 'premium' and 'unlimited' subscription levels are now active.]
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More Bits & Pieces: Rdio Taps WBR Chief Rob Cavallo, AEG Launching Ticketing Venture & more…
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?
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Wednesday Bits & Pieces: Idol & UMG, eMusic’s new CEO and Chart Highlights
Idol's New Deal with UMG
The big news coming out yesterday was 19 Entertainment’s decision to align American Idol with Universal Music Group for a new distribution and marketing deal, letting their previous deal with Sony Music lapse after 9 seasons. While the move is being portrayed as “dropping a bomb” by many media outlets, the decision comes as much less of a surprise within the industry. The show itself is undergoing many transitions heading into the 10th season, not to mention that creator Simon Fuller’s relationship with new UMG co-CEO Lucian Grainge is well known, performance of Idol finalist releases have been in decline, and uncertainty about what lies ahead for some of Sony’s top brass all pointed to a likely change – as was rumored in past weeks… eMusic has announced a new CEO in Adam Klein, who has previously held positions at MTV and EMI; a new upcoming cloud-based “locker” system has also been tipped. Klein replaces JDS Capital Management/Dimensional Associates head Danny Stein who was running the music service temporarily after the exit of eMusic’s former CEO David Pakman. JDS/Dimensional also recently finalized their acquisition of The Orchard… Elsewhere, Avenged Sevenfold sees their first No. 1 on the Billboard 200 Charts with their new release Nightmare, bumping Eminem’s Recovery from the top spot. Another impressive chart story comes from L.A. locals Best Coast, whose new release Crazy For You debuted at #36 selling over 10K in its first week… And will Spotify move into the shadows of the new digital music era, at least in the U.S., with the public launch of Rdio this week?
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In Case You Missed It: Reading Recap
The Best Things in Life Aren't Free?
Not to be left out of the growing media preoccupation with new music services from industry giants like Google and Apple, not to mention the handful of new players who have emerged ahead of the curve like mspot, MOG, Spotify and Rdio, MySpace Music is back in the mix with renewed reports this week of a looming subscription service. The company is said to be in talks with labels about moving away from their current free streaming model to a paid service… Simultaneously MySpace parent News Corp. was quick to deny rumors that the company is in talks to sell the once supreme social network that has been facing a tough transition and revolving door of executives over the last year… An article in the WSJ today examines the increasingly tough road for the live music business – and for those keeping score, Rihanna’s “Last Girl on Earth” tour appears to be the latest summer outing to announce cancellations… Elsewhere, Wilco is planning to start their own label and will be leaving Warner Music after a 15-year relationship, having released albums on both Reprise and then Nonesuch… And CAA + “The Decision” x Kanye West = LeBron to The Heat…
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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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Meet Me in the Cloud: Rdio Launches
Twelve hours ago at the strike of midnight, the new digital music service from the founders of Kazaa and Skype was launched. Called Rdio, the service has deals with all the major labels and some indies, and is the latest to join an arena occupied by other similar services like MOG and mspot. It looks like they have tried to differentiate the site by creating a Twitter-like environment focused on music, in which users can follow what and who other users are listening to in real-time, along with other unique listening data and rankings. Right now the service is invite-only (ala Gmail), an indication that Rdio is in no hurry and intends to create a strong base built on serious music fans… This new service comes ahead of any announcement from juggernauts Apple or Google who many expect will soon unleash their own cloud music services. Meanwhile Spotify continues to be quiet on any U.S. launch, though there’s been recent speculation about one major label holdout in particular and that there is already a small segment of users in the states…
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