More from Dive Into Media: Vevo, Spotify & Neil Young
Neil Young addresses labels, piracy & more
Vevo CEO Rio Caraeff, made the first public statements regarding the video site’s profitability at the digital media conference this week, putting it plainly, “We are making money, yes,” with a reported $150 million in revenue last year. In terms of the future, Caraeff predicted that the joint-venture, which includes Sony Music, Universal Music and EMI, could be a billion dollar business in a “short period of time”… Meanwhile, Edgar Bronfman Jr. lauded Spotify as being artist-friendly and not detrimental to download sales, during his interview, and called Google Music an oxymoron, explaining that there’s no “beef” between Warner Music and Google, but they need to decide if they want to be a content platform… And Neil Young addressed a number of topics including audio quality, record labels, piracy and how he and the late Steve Jobs has discussed how to reconcile the current issues facing the digital music era by combining all three.
01.20.12Digital Round Up: Grooveshark legal spat takes interesting turns; Will Vevo swap YouTube for Facebook?; Megaupload action & more
If you’ve been following the story of Grooveshark’s most recent legal fray with major labels, spearheaded by Universal Music Group, you know that the federal lawsuit charges that executives at the digital music company personally uploaded illegal content. In an odd twist to the case, an incriminating anonymous post on Digital Music News from a supposed employee, lead to Grooveshark’s parent company serving the industry blog with a subpoena last weekend, which DMN responded to today. And in the midst of all the activity surrounding the lawsuits, Grooveshark released a new iPhone app this week, and also pulled the plug on its service in Germany citing too high of licensing costs from GEMA… Elsewhere this week, Ticketmaster launched its new robust Facbook app, which allows fans to see what shows or events their friends are attending as well as buy tickets within the Facebook platform, among a number of other social aspects, and it also features an integration with Spotify… Other Facebook news includes reports that major label-backed video site Vevo has been in talks with Facebook about moving the service over to the social network’s platform upon the conclusion of its current deal with Google-owned Youtube. Such a deal would be a considerable boon for Facebook’s music component, and while Vevo has grown to the second largest online video destination, its quick rise to popularity did come on the back of Youtube’s dominant position as the #1 online video destination… The bizarre saga of Megaupload (remember the song and promotional video featuring Will.i.am and other celebrities that was pulled offline recently?) may be coming to a close with major federal action being taken against the internet ‘locker’ service and its executives yesterday. The arrests and seizures were followed by retaliations from Anonymous hackers who targeted multiple websites including those of the DOJ, MPAA, Universal Music Group and others… Meanwhile, an interview this week on Fast Company tries to pin-down Slacker Radio’s CEO Jim Cady on the hotly-debated issue of whether or not streaming-music rates create a sustainable source of income for artists.
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Round Up: Grooveshark bites itself, Spotify announces apps, major label moves & more…
Grooveshark emails have bite
Catching up after a turkey hangover, some of what’s happening around the biz… Things are looking messy for Grooveshark, who is facing aggressive legal action from Universal Music Group, with the surfacing of some incriminating internal emails… After teasing a big announcement and “new direction” for Spotify, the streaming-music service unveiled the news in New York City yesterday of a new platform with integrated apps from a variety of third party developers including Rolling Stone, Songkick, Pitchfork and others… According to CNET, it seems the rift between Vevo and MTV may soon be ending, with word that the two parties are negotiating a deal which would give MTV’s online properties access to Vevo’s music videos… Prior to the holiday weekend, Warner Bros. Records announced a three-year global partnership with Vice Music. Those keeping score note that the deal was originally spear-headed by now departed Warner Bros. A&R executive Steve McDonald, who also currently plays in OFF!, one of the bands on Vice’s roster… Dizzee Rascal is taking his label Dirtee Stank to Universal in a deal that will see the major distributing and marketing releases from the UK indie… Elsewhere, more changes within the ranks of Sony Music emerged this week, with further reporting of Sony’s top digital executive Thomas Hesse departing for Bertelsmann, while Tricky Stewart and Mark Shimmel are expected to be announced as part of the continuing executive selections at Epic Records under L.A. Reid… Meanwhile, the New York Posts‘ Page Six reports today that Drake has parted ways with both his management firm, Hip Hop Since 1978 and his agency, ICM, in favor of William Morris Endeavor… And top-notch writer/producer and former member of Whiskeytown, Mike Daly, has taken a new position doing A&R at Walt Disney Records.
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Bits & Pieces: BMG Sets Sights on WMG & EMI Publishing Assets, MySpace + Vevo & Twenty First Republic
Eyeing Warners & EMI publishing arms
Outside of the explosive announcement from Amazon this week that left a music-cloud hanging over the industry, other developments include the news of KKR-backed BMG Rights Management being back in the bidding action for Warner Music Group, after recent reports of the JV being on the outs in the sale. CEO Hartwig Masuch denied such rumors, saying “I can state that we are in the second round of bidding and are on very friendly terms with the main shareholders,” while executives at BMG RM’s other backer Bertelsmann claimed this week that the company is “ready to invest into the right business, at right price, and at the right time,” with the right business apparently being publishing, as Warner/Chappell and EMI Publishing are key in their sights. More reporting can be found at The Guardian, The Telegraph and Music Week… As News Corp. continues to look for a way to unload struggling MySpace, word that the parent company is in talks with online video hub Vevo began to surface. The accuracy of such claims continues to be debated, while a piece in the WSJ yesterday points out that the complex ownership anatomy of both companies might make a deal difficult. For now it seems an unlikely scenario… And a new partnership that links Universal Republic Records, Universal-owned Twenty First Artists and producer management firm Worlds End, forming Twenty First Republic, was announced yesterday. Primaries in the deal include Uni/Republic executives Monte and Avery Lipman, Twenty First Artists CEO Colin Lester and Sandy Roberton, CEO of Worlds End.
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Wednesday Bits & Pieces: Google’s War Chest is Key to Music Service, mSpot Goes Mobile & more…
App Approved
In case anyone had forgotten about Google’s plans to unleash a music service, a reminder comes in the form of new reports that the company is still in the process of negotiating with the labels for a launch next year, and their biggest, and most obvious bargaining chip, is lots of money, tens of millions in fact according to recent speculation. While it was originally thought that Google would first unveil a paid download type of service by the end of this year, similar to iTunes, ahead of moving toward the primary goal of a online music locker, indications now are that they’ll bypass a download store in favor of cloud-based streaming right out of the gate. Reasons for the delay in launch may include infighting over control of the music project, and failure to acquire an already built infrastructure in the form of Spotify or Rhapsody, rather than building something completely new. Matt Rosoff has the scuttlebutt at SAI… Speaking of music streaming, start up mSpot has gotten approval for their free iPhone app, which essentially provides the same desktop-to-mobile music synching feature that everyone is waiting for Apple or Google to launch, though as MediaMemo points out, the company currently has no licenses with the labels. A situation that seems to leave the company in a position to either be targeted for legal action or acquisition… The crux of the digital music dilemma is most often that technology innovators and content holders find themselves at an impasse, with the new distribution system, telecommunication companies, keeping their distance from the wrangle. Looking to the future, comments this week from Jean-Bernard Lévy, CEO of Vivendi, parent company of Universal Music Group among many others, could be seen as revealing. In discussing the company’s expanding umbrella and concentration on new businesses, Lévy said, ”The worlds of telecoms networks and content are merging,” – “And we are in the middle.”… Elsewhere, Yahoo has confirmed the already well documented layoffs, that total 600 staff members, or roughly 4% of its workforce… NBC is planning to launch their own American Idol rival, The Voice of America, which will start airing next spring, well ahead of the planned fall launch of Fox’s other Idolesque series, The X Factor… And MTV in partnership with The Echo Nest has launched a new algorithm-based music discovery site called MTV Music Meter, which puts focus on emerging artists alongside those already established, and is being seen as another step to maintaining the recently achieved online music dominance over Vevo…
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Wednesday Bits & Pieces: Tip of the UMG Change-Over, Yahoo Music Head Departs, MTV Funding Videos & More
Changes afoot @ UMG
The departure of longtime Universal Music Group vice chairman and CFO Nick Henny was announced this week, the first high-level executive to exit under new UMG ruler Lucian Grainge. Seen as only the tip of what will be a massive restructuring at the largest of the four major music groups, chatter continues about the fate of executives and the labels themselves including Island Def Jam, Mercury and both Motown and Republic labels. Stay tuned… After a relationship lasting almost four decades, Queen has officially parted ways with EMI, signing with UMG in a deal that will see the release of remastered albums next year… In more exits, Yahoo Music chief Jeff Bronikowski is reportedly leaving to join AOL Music - AOL has also been named among those recently interested in acquiring Yahoo, other names on the list include BMG Rights Management backer KKR… Though no longer “Music Television” in name, MTV has announced the launch of a new series of videos called Supervideos, that will see the company funding the videos themselves – a move spawned by the return of music video popularity online, and possibly the rise of a new rival in Vevo. The first video project is for the LCD Soundsystem song “Pow Pow”… Elsewhere, Warner Music is launching an archival project dubbed Sight of Sound, which will focus on the integral role that visuals played in the pre-Internet age, and to document the rich history of the label… And after two years of running as an ad-funded streaming service, the UK company We7 is refocusing as an online radio service similar to Last.fm and Pandora.
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In Case You Missed It: Vevo – MTV Standoff Continues, Imeem & MOG Founders on Startups & Spotify’s Ballsy Play…
Web TV Means Opportunity for Music
News, commentary and opinions in the tech + music arena were particularly plentiful this week, with many of the current players making headlines… Vevo and MTV are still at an impasse for a deal that would allow the former to sell ads on the latter’s properties and target their viewers, a scenario that MTV is not comfortable with. While publicity battling over who has the #1 spot in views has become common, the heart of the matter is that Vevo continues to capture the majority of the online music video market, with deals in place with all the major labels except Warner Music Group, but its sights are set on bigger targets in the form of deals like the recent Google TV partnership. AdAge has more on the standoff… And television increasing looks likes the next platform to conquer for digital music, with set-top boxes growing in availability and increased features, mainly apps. As smartphones multiply and the user base for those who get their music delivered via web and mobile apps increases, TV is quickly becoming a big part of the equation. More on why this is at Evolver.fm… The founder of the now deceased Imeem, Dalton Caldwell, gave some cautionary words to those looking to enter the music startup world this week, pointing to the difficulty to innovate in the current landscape… Though MOG CEO and founder David Hyman, was quick to share his opposing opinion via TechCrunch, saying, “digital music seems to be a game that every 20-something wants to try and play, and it’s almost as if creating a digital music product is a rite of passage for millions of young buck programmers. It’s unfortunate that because it’s a sexy space, and because there are tons of entrants into the field, all of the noise creates an impression that winning can’t be done. It certainly can”... [Update: Rhapsody weighs in on opportunity for music startups via SAI]… Former young buck behind Napster, Sean Parker, is feeling confident about Spotify in spite of continued roadblocks in the U.S., saying of the company’s model, which is creating most of the hesitation from labels in the states, “You have no choice. We’ve got you by the balls, you’ll have to become a subscriber.” Parker, who was speaking at a DailyBeast event, also claimed a launch of the service in the states will still happen before the year ends … Elsewhere, Google has launched its music service… In India… Viacom has tapped a new big gun lawyer to lead its next round in court against YouTube… The L.A. Times catches up with Tim Westergren on what’s next for Pandora… And Chamillionaire schools tech entrepreneurs and talks to ThisWeekIn…
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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
Twitter Announces Deals with Google & Microsoft
Three Letter Circus > It was reported on Sunday that Citigroup was “lining up” buyers (including WMG) for EMI in an attempt to pressure owner Terra Firma into selling the music company (Guardian)… However the next day a statement to the contrary was released by the bank claiming that they were not seeking buyers, implying they couldn’t do so being a debt holder not an equity owner (Reuters)…
Tweet Deal > Twitter’s seeming indifference to being labeled “profitable” ends with the micro-blogging service’s announcement of two content-search deals with Google and Microsoft (specifically Bing). The deals, worth a combined $25 million, will allow tweets to appear in both service’s search engine results (BW)…
It’s All Good > UK regulators approved the proposed merger of Ticketmaster and Live Nation, an about-face for the Competition Commission who previously expressed serious concerns over the deal (NYTimes)…
Freedom of Choice > Hulu makes further inroads in the music video arena by adding content from Warner Music Group, who is also the only major music group yet to make a deal with the label-backed video service Vevo. A similar arrangement between Hulu and EMI was announced last month (MediaMemo)…
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In Case You Missed It: Reading Recap
Apple buys streaming-music service Lala
A week ago today the news broke that Apple was buying music service, and new Google Music search partner, Lala, lighting up the tech and music world (cnet). How much Apple actually paid to acquire the streaming-music service has been a matter for continued speculation (TechCrunch)… EMI made an 11th hour content licensing deal with the new major label-backed video site Vevo, which officially launched on Tuesday (Epicenter). True to industry form there was a celebrity-filled gala to commemorate the occasion (Billboard)… MySpace formally acknowledged it has bought struggling Imeem and promptly shuttered the streaming service (VentureBeat)… And as expected, The Hollywood Reporter, Billboard and a handful of other Nielsen Media publications were officially sold to a consortium of investors (LATimes).
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