Last week saw reports that Apple has signed licensing agreements with EMI Music and Sony Music for its imminent cloud-music service, leaving Universal Music Group the sole holdout, though word seems to be that a deal is on the cusp. While many of those watching are predicting an announcement of the new service at Apple’s annual WWDC event in June, the other remaining issue is having deals in place with the major music publishing companies, which right now they don’t appear to have. According to a report on CNET, despite Apple’s previous stepping out with increased iTunes song-sample lengths without the approval of publishers that created a contentious situation, there isn’t much keeping the two sides apart on a cloud-streaming agreement… Most are already hailing Apple as the fait-accompli winner of the cloud music ‘wars’, though Amazon made a big wave this week by offering Lady Gaga‘s new album Born This Way at a deeply discounted price, a move that the WSJ paints as an offensive on the iTunes digital music dominance, though Amazon is still a long way from making a dent in iTunes stranglehold. According to the article’s sources, Born This Way sold between 250,000 – 350,000 across both online marketplaces in its first day… Over the weekend news surfaced that Access Industries and Len Blavatnik‘s offer for Warner Music was not the highest, a group including Sony Corp., Guggenheim Partners and Ron Perelman offered 3% more at $8.50 a share, though the deal would have been contingent on Sony board and partner approval. How this will effect the multiple shareholder lawsuits Warner is currently facing is yet to be seen… Speaking at e-G8 in Paris this week, Sean Parker made comments, as MediaMemo notes, that may explain his interest in the recent bidding on Warner Music, and could also portend future involvement in bidding on recorded music companies, an excerpt: I think that there is a pretty dramatic change in the way music is monetized that is on the cusp of happening. Back catalogues of record labels are going to become extremely valuable…If you believe this transformation is occurring, if you believe the broken distribution systems are on the verge of being fixed, those recordings are dramatically undervalued… And speaking of labels for sale, Forbes has a profile of EMI group CEO Roger Faxon, framing him as the key in the label’s recent turnaround, including major digital breakthroughs with Beatles and Pink Floyd catalogs, though his future at the company may depend solely on who the new owners will be… And is Facebook Music launching soon and on the back of Spotify?
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Monday Roundup: Sean Parker in on Warner Music Bid, NY Times on Big Machine’s Borchetta, Clear Channel Digital Head Leaves & more…
The latest news coming out of the Warner Music Group sale, is that Napster co-founder, and current Facebook and Spotify investor, Sean Parker is part of a consortium that is planning to make a bid for WMG, a group led by Ron Burkle and Doug Teitelbaum, according to AllThingsD. Burkle’s interest in making a play for the company was recently revealed along with a handful of other leading suitors. Parker’s moves are always of interest to tech and music industry circles, due to his association with such high-profile and influential start ups. Warner is one of two remaining major label groups yet to sign on with Spotify in the U.S. – Universal Music Group being the other… The New York Times profiled Big Machine Records founder Scott Borchetta in a piece over the weekend. Borchetta goes into his early career in Nashville working with his father’s promotion company and various Music City record labels, before starting Big Machine in 2005… On the heels of the recent acquisition of music subscription service Thumbplay by Clear Channel, who is eyeing the online radio space currently dominated by Pandora, the company has announced the departure of its head of digital Evan Harrison… And Superglued, a highly-anticipted location-based Foursquare-like mobile app for concerts, will be unveiled tomorrow during the last day of SXSW Interactive.