17/11/08 Trouble Ahead, Trouble Behind: More Rockiness Awaits
17/11/08 Trouble Ahead, Trouble Behind: More Rockiness Awaits
A difficult rearview is now prelude to more turbulence ahead, and investors are exercising caution. Instead of heady optimism and bottom-scraping scrappiness, most are girding for another rollercoaster week, including those carrying music-related shares.
That includes Warner Music Group (WMG), a company that bottomed an all-time low of $2.74 last week, only to resuscitate to $2.77 by Friday. Sirius XM Radio (SIRI) also tested the trough by landing at 26 cents at the end of the week, a depressed valuation that betrays a host of serious ills.
Those companies have fundamental issues, though broader headwinds remain unfriendly. On Friday, the Dow shed 337.94 points to 8.497.31, a 3.82 percent drop on Friday. Overall, the Dow dropped 4.2 percent on the week, based on a bearish mix of bad earnings, layoffs, tightening consumer confidence, and pending meltdowns of mega-corporations like GM.
Other music-related stocks felt the pressure. Live Nation (LYV) landed at $5.50, a 36.6 percent drop on the week, based on negative analyst projections related to concert attendance. Irving Azoff-helmed Ticketmaster Entertainment (TKTM) also ended sharply down, dropping 24.7 percent to $5.87. The Orchard edged downward 1.9 percent, landing at $2.54; and Apple (AAPL) slipped 5 percent to $90.24.
16/11/08 More Layoffs at Sirius XM Radio...
16/11/08 More Layoffs at Sirius XM Radio...
Sirius XM Radio is continuing to shed staff, a pare down that comes against a troubled company forecast. The latest round involves roughly 30 staffers, according to a tips from All Access, FMQB, and Orbitcast. The move closely follows a freshly consolidated dial, and the eliminations involve a number of program directors from shuttered stations.
Last week, Sirius subscribers were transitioned into the merged dial, a process that created some confusion among listeners. Additionally, the elimination of certain stations - often in favor of a redundant or similar station - created some disappointment among loyal followers. The broader impact on subscription levels remains unclear, though the move towards a simpler, consolidated dial was probably inevitable.
15/11/08 Duke Wants Proof; Pushes Back Against RIAA
15/11/08 Duke Wants Proof; Pushes Back Against RIAA
Duke University now wants proof of infringement before forwarding an RIAA notice, according to the Office of Student Affairs. That replaces an earlier practice of simply passing a pre-litigation notice through to its students, without examining the case. "What we're saying is that in order for us to pass on a settlement letter to a student, we're going to start requiring evidence that someone actually downloaded from that student," vice president for Student Affairs Larry Moneta told Duke newspaper The Chronicle.
The move probably presents a speedbump for the major label trade group, though symbolically, it signals another episode of resistance by a major university. It could also signal the beginning of greater levels of pushback, based on technical definitions of what constitutes infringement. Outside of academia, the RIAA is now defending an infringement methodology that equates "making available" with illegal transfer. An upcoming retrial focuses on whether induced downloads through RIAA partner MediaSentry are a veritable substitute for actual downloads from a third party, a transaction that is far more difficult to prove.
15/11/08 IODA Gets a Bigger Piece of Indie Japan...
15/11/08 IODA Gets a Bigger Piece of Indie Japan...
IODA is now pushing further into the Japanese independent music scene, thanks to a deal involving BounDEE. The San Francisco-based IODA, a top digital distributor for a range of independent labels, is tapping BounDEE to distribute content across a number of online and mobile outlets in the region. BounDEE is also offering physical and marketing solutions for a smaller group of IODA labels and artist.
The BounDEE network includes over 200 stores, a footprint that includes a significant mobile reach. Most importantly, BounDEE offers a relationship with mobile music heavyweight Label Mobile, just one of several important partners. According to figures from the IFPI, 91 percent of music is consumed over mobile devices, a ratio that makes it imperative for IODA to expand beyond outlets like iTunes Japan. "Our relationships in the mobile market will help IODA's labels get access to the number one way digital music is consumed in Japan," said Hideaki Shimizu, chief executive. of BounDEE.
In return, IODA will also distribute BounDEE artists into regions like the United States, part of a recipricol deal.
14/11/08 Lost Beatles Track Surfaces... Now What?
14/11/08 Lost Beatles Track Surfaces... Now What?
Beatles aficionados were recently delighted to find that a 14-minute, "lost track" actually exists. The track, "Carnival of Light," was confirmed by Paul McCartney during a recent BBC interview. "It does exist," McCartney told BBC Radio 4. The song was actually conceived in 1967, and performed only once in public, according to McCartney. "I like it because it's The Beatles free, going off piste," McCartney described. "The time has come for it to get its moment."
The song was rejected for inclusion in the Anthology compilation, according to McCartney, and the fate of the track remains unclear. As described, the song sounds more like a sonic escapade, and less like a tightly-conceived Beatles classic. Perhaps more "Revolution 9," and less "Love Me Do," though the presence of the track could re-energize digital discussions. The Beatles, longtime digital holdouts, have yet to license their content online, though fans have been trading the entire catalog illegally for more than ten years.
