The Orchard Brings Its Extensive Independent Music Catalogue to MySpace Music MySpace Music Launches First Wave of New Product Offerings with All 4 Major Record Companies, 4 Major Publishing Companies, and a Global Leader in Independent Digital Music Amazon MP3 to Power Integrated E-Commerce Solution Enabling Purchases of MP3 Downloads McDonald's, Sony Pictures, State Farm, and Toyota Are Inaugural Brand Advertisers

Lyor Cohen and Michael Fleisher Each Promoted to Vice Chairman; Steven Macri Named Chief Financial Officer

Agreement Builds Upon Existing Relationship in India, the Middle East and North Africa

EMI is planning to launch its own consumer-facing portal to market its artists’ music directly to fans online, reports FT.com. EMI.com will launch before Christmas, and will let users buy music and download it. It will offer both video and audio content, as well as “unique content.” Some parts of the site will also be free. The portal has apparently been “carefully monitored” by Guy Hands, head of PE group Terra Firma which bought the label for £2.4 billion last year with the record label keen on using the portal as a “learning lab” where people can discover new music. Will the site be able to compete with the likes of iTunes or MySpace in marketing directly to fans? The FT quotes an unnamed music industry exec who said, “Research has shown that when consumers are looking for music they want it all in one place. They want to buy Beyoncé when they are buying Rihanna. I am not quite sure what EMI will get for the money they have spent on it.” Staci adds: Sources familiar with the project tell us it is not meant to compete with EMI’s digital retailers like iTunes but to serve more as a test bed with free and paid content. It doesn’t seem to be stopping new retail relationships: EMI is one of the featured content providers in YouTube’s new e-commerce initiative. In other music news, Sweden-based digital music streaming service Spotify has launched what’s being seen as a serious contender to iTunes. It’s signed on Universal Music Group, Sony (NYSE: SNE) BMG, EMI Music, Warner Music Group (NYSE: WMG), Merlin and The Orchard (NSDQ: ORCD) and has rolled out first in the UK, Germany, France, Italy, Spain, Finland, Norway and Sweden with more countries to follow later this year. The service, which was rumored to have recently raised €15.3 million (£11.95 million) from Nordic VC’s Northzone Venture Partners, offers users a choice of paid subscription service, a day pass, or an ad-funded version. Only the paid-for service has launched, with the ad-funded service available by invitation only (release).

EMI is planning to launch its own consumer-facing portal to market its artists’ music directly to fans online, reports FT.com. EMI.com will launch before Christmas, and will let users buy music and download it. It will offer both video and audio content, as well as “unique content.” Some parts of the site will also be free. The portal has apparently been “carefully monitored” by Guy Hands, head of PE group Terra Firma which bought the label for £2.4 billion last year with the record label keen on using the portal as a “learning lab” where people can discover new music. Will the site be able to compete with the likes of iTunes or MySpace in marketing directly to fans? The FT quotes an unnamed music industry exec who said, “Research has shown that when consumers are looking for music they want it all in one place. They want to buy Beyoncé when they are buying Rihanna. I am not quite sure what EMI will get for the money they have spent on it.” In other music news, Sweden-based digital music streaming service Spotify has launched what’s being seen as a serious contender to iTunes. It’s signed on Universal Music Group, Sony (NYSE: SNE) BMG, EMI Music, Warner Music Group (NYSE: WMG), Merlin and The Orchard (NSDQ: ORCD) and has rolled out first in the UK, Germany, France, Italy, Spain, Finland, Norway and Sweden with more countries to follow later this year. The service, which was rumored to have recently raised €15.3 million (£11.95 million) from Nordic VC’s Northzone Venture Partners, offers users a choice of paid subscription service, a day pass, or an ad-funded version. Only the paid-for service has launched, with the ad-funded service available by invitation only (release).

The media giant digs a deeper trench in its war on video-sharing.

As expected, Nokia (NYSE: NOK) unveiled details of its Comes With Music unlimited music download service today. Our UK editor Robert Andrews was live in London this morning to cover the event. There’s a ton of details at mocoNews here, but here’s some of the basics: The first market and phone: The U.K. will be the first market to offer Comes With Music with sales planned to start on Oct. 16. The Nokia 5310 XpressMusic Comes With Music edition is expected to cost 129.95 pounds, and people can pre-register their orders at Carphone Warehouse. The service will launch in the U.S. next year, Reuters reports. Release. The first touchscreen phone: Nokia also announced today the Nokia 5800 XpressMusic, which will be the handset maker’s first mass-market touchscreen phone and first attempt at developing a competitior to Apple’s (NSDQ: AAPL) iPhone. The phone will be available worldwide beginning in the fourth quarter for an estimated retail price of 279 EUR before taxes and subsidies. However, the Nokia 5800 XpressMusic, featuring Comes With Music, will not be available until early next year at an undetermined price (most likely more expensive). Release. EMI On Board: Nokia announced today that they have officially signed up EMI, so that they now have all four major record labels on board for the service, counting Universal Music Group, Sony (NYSE: SNE) BMG Music Entertainment and Warner Music Group (NYSE: WMG). There’s also many independent music deals, including: The Orchard (NSDQ: ORCD), Beggars Group, IODA, the Ministry of Sound, PIAS and Pinnacle. 

As expected, Nokia (NYSE: NOK) unveiled details of its Comes With Music unlimited music download service today. Our UK editor Robert Andrews was live in London this morning to cover the event. There’s a ton of details at mocoNews here, but here’s some of the basics: The first market and phone: The U.K. will be the first market to offer Comes With Music with sales planned to start on Oct. 16. The Nokia 5310 XpressMusic Comes With Music edition is expected to cost 129.95 pounds, and people can pre-register their orders at Carphone Warehouse. The service will launch in the U.S. next year, Reuters reports. Release. The first touchscreen phone: Nokia also announced today the Nokia 5800 XpressMusic, which will be the handset maker’s first touchscreen phone and first attempt at developing a competitior to Apple’s (NSDQ: AAPL) iPhone. The phone will be available worldwide beginning in the fourth quarter for an estimated retail price of 279 EUR before taxes and subsidies. However, the Nokia 5800 XpressMusic, featuring Comes With Music, will not be available until early next year at an undetermined price (most likely more expensive). Release. EMI On Board: Nokia announced today that they have officially signed up EMI, so that they now have all four major record labels on board for the service, counting Universal Music Group, Sony (NYSE: SNE) BMG Music Entertainment and Warner Music Group (NYSE: WMG). There’s also many independent music deals, including: The Orchard (NSDQ: ORCD), Beggars Group, IODA, the Ministry of Sound, PIAS and Pinnacle. 

Filed under: Apple Inc (AAPL), Walt Disney (DIS), Viacom (VIA), Electronic Arts (ERTS), Activision Inc (ATVI), Technology

As an Activision Blizzard (NASDAQ: ATVI) shareholder, I'm extremely gratified by the unqualified success of the Guitar Hero franchise. However, I'm none too happy about statements made by Warner Music Group (NYSE: WMG) CEO Edgar Bronfman Jr. who believes that Activision Blizzard should be paying more to license the songs. When I first heard about that, I admit, I became a bit worried. After all, if the publisher has to pony up a higher amount of cash to the music industry, then there could be pressure on the stock.

Well, I'm glad I caught a blog post by Eliot Van Buskirk for Wired over at Portfolio.com. Looks like Activision Blizzard CEO Robert Kotick isn't taking too kindly to those in the music industry who suggest his company needs to share a higher percentage of the spoils. He basically told Bronfman Jr. to chill out, suggesting that the impact of his software platform on music sales for artists that are contained within it almost argues that the publisher shouldn't pay a dime to the music industry.

The shareholder in me says "right on, Bob!" In this digital age, the music industry needs all the help it can get in promoting its artist roster. Gone are the days when consumers opened their wallets for physical CDs. That aspect of the music industry is dying in favor of the iTunes model that powers Apple (NASDAQ: AAPL) and its iPod empire. Therefore, I agree with Buskirk's assertion that the boat shouldn't be rocked here. Music companies should just accept the licensing structure as it exists, look at it as a loss leader if they feel that's what it is, and just be satisfied with the ancillary promotion they receive.

Yet, I'd be less than truthful if I said I didn't understand where Bronfman Jr. was coming from. Indeed, I am a media-sector kind of guy and I do love the idea that content libraries can be leveraged to drive shareholder value. Bronfman Jr. is simply trying to get the most money that he can for his content. He wants to ensure that it is perceived as valuable. After all, if games such as Guitar Hero and Rock Band, the latter of which is produced by Viacom (NYSE: VIA) and distributed by Electronic Arts (NASDAQ: ERTS), becoming increasingly popular, then Warner Music Group needs to act on behalf of its shareholders' best interests.

It's like Disney (NYSE: DIS). Disney has gotten into battles before with cable companies over its content, demanding higher fees per subscriber for the right to place its cable channels on a given system's lineup. I am a shareholder of Disney, and although I did see both sides in that case as well, I obviously appreciated that Disney was standing up for me.

At the end of the day, though, the music industry should back off. I'm obviously biased, but I think Warner Music Group and other businesses dependent on the marketing of tunes to the youthful demographics need to allow Activision Blizzard and Viacom to profit as handsomely as possible so that they will continue to pump money into each new iteration of its games and make them as technically advanced as conceivable. It's not like Bronfman Jr. has to shoulder the development costs. Then again, he'd probably argue that he was in fact doing that by essentially giving away his content for less than what he believes it's worth.

Value is in the eye of the beholder, I guess. I hope this doesn't turn into an all-out war. But I'm glad Activision Blizzard's CEO is injecting some cool rhetoric into the skirmish on behalf of shareholders. Hey, Warner Music Group's stock hasn't been as strong as Activision Blizzard's stock the last few years, so I'm sure there's a little bit of ego-clashing going on here as well. At any rate, this should be an interesting one to watch.

Disclosure: I own Activision Blizzard and Disney; positions can change at any time.

 

Read | Permalink | Email this | Linking Blogs | Comments

Filed under: Apple Inc (AAPL), Walt Disney (DIS), Viacom (VIA), Electronic Arts (ERTS), Activision Inc (ATVI), Technology

As an Activision Blizzard (NASDAQ: ATVI) shareholder, I'm extremely gratified by the unqualified success of the Guitar Hero franchise. However, I'm none too happy about statements made by Warner Music Group (NYSE: WMG) CEO Edgar Bronfman Jr. who believes that Activision Blizzard should be paying more to license the songs. When I first heard about that, I admit, I became a bit worried. After all, if the publisher has to pony up a higher amount of cash to the music industry, then there could be pressure on the stock.

Well, I'm glad I caught a blog post by Eliot Van Buskirk for Wired over at Portfolio.com. Looks like Activision Blizzard CEO Robert Kotick isn't taking too kindly to those in the music industry who suggest his company needs to share a higher percentage of the spoils. He basically told Bronfman Jr. to chill out, suggesting that the impact of his software platform on music sales for artists that are contained within it almost argues that the publisher shouldn't pay a dime to the music industry.

The shareholder in me says "right on, Bob!" In this digital age, the music industry needs all the help it can get in promoting its artist roster. Gone are the days when consumers opened their wallets for physical CDs. That aspect of the music industry is dying in favor of the iTunes model that powers Apple (NASDAQ: AAPL) and its iPod empire. Therefore, I agree with Buskirk's assertion that the boat shouldn't be rocked here. Music companies should just accept the licensing structure as it exists, look at it as a loss leader if they feel that's what it is, and just be satisfied with the ancillary promotion they receive.

Continue reading Activision Blizzard is no hero to Warner Music Group

Read | Permalink | Email this | Comments

Strong cash flow and fat profit margins usually insulate the media industry during times of economic stress, but that may not prove to be the case in the current downturn because of secular pressures on traditional media as advertisers move to new platforms, according to Fitch Ratings. In its inaugural “Credit Encyclo-Media” report, Fitch said higher-than-usual debt [...]

Filed under: Products and services, Consumer experience, Marketing and advertising, Walt Disney (DIS), Sony Corp ADR (SNE)

The Associated Press reported on five upcoming albums this fall in an article posted yesterday, raising new questions about the music industry and the success these albums may enjoy. The big news are the number of comeback albums being released in the next few months, notably from Metallica and Australian band AC/DC. Both albums come after lapses of five years or more from the artists, a time period that has seen major upheaval and change in the industry, and the AP cites reports that both return the bands to their roots.

Nevertheless if Metallica and AC/DC are returning with new material, the music industry is simple not a safe place for anyone involved with it: artists, managers, investors, and vital customers. In fact, both Warner Music Group Corp. (NYSE: WMG) and Sony Corporation (NYSE: SNE), which owns Sony Music Entertainment Inc., have seen declining prices throughout the summer. None of this is any different from the declines the industry has been seeing in recent years, but digital sales and excitement over new albums in the summer might have pointed in the opposite direction.

The AP's projections for other top albums this fall include material from rapper T.I., still reeling from a weapons charge and punishment, and High School Musical 3 from Disney (NYSE: DIS). It is just too hard to suggest if these projections are reliable in an industry currently in flux and continuously declining. However, they are sure to be successful, in particular the next installment of High School Musical, but they will probably all be paled by an unexpected success. If the summer excitement could continue from the festivals and tours into the fall, then these albums could do well, but whether that will improve the industry or improve investors is just too risky to speculate.

Permalink | Email this | Comments

Filed under: Earnings reports, Cisco Systems (CSCO), Exxon Mobil (XOM), Hansen Natural (HANS), Toyota Motor Corp. (TM), Archer-Daniels-Midland (ADM), General Mills (GIS), Polo Ralph Lauren'A' (RL)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Archer Daniels Midland Co. (NYSE: ADM) said Q4 profit plunged, missing analysts' expectations.
• Berkshire Hathaway Inc. (NYSE: BRK.A) posted yet another solid quarter and topped analysts' expectations.
• Cisco Systems Inc. (NASDAQ: CSCO) reported solid results and reaffirmed its revenue guidance.
• General Mills Inc. (NYSE: GIS) performance despite rising commodities costs impressed Jim Cramer.
• Hansen Natural Corp. (NASDAQ: HANS) Q2 earnings surged on popularity of Monster energy drink.
• Humana Inc. (NYSE: HUM) beat Q2 expectations, sending shares of health insurers higher.
• LeapFrog Enterprises Inc. (NYSE: LF) narrowed its Q2 loss, sending shares up near its 52-week high.
• MGM Mirage (NYSE: MGM) Q2 profit tumbled but revenues topped analysts' expectations.
• NetSuite Inc. (NYSE: N) cut its Q2 loss and revenues surged on 400 new customers.
• Orbitz Worldwide Inc. (NYSE: OWW) narrowed its net loss while revenues inched upward.
• Polo Ralph Lauren Corp. (NYSE: RL) easily topped Q1 expectations and raised its full-year guidance.
• Pzena Investment Management Inc's (NYSE: PZN) CEO admits that its Q2 was "awful, just terrible."
• 3Com Corp. (NASDAQ: COMS) raised its Q1 profit and sales forecasts due to gains in China.
• Toyota Motor Corp. (NYSE: TM) net income fell due to the strong yen and rising materials costs.
• Warner Music Group Corp. (NYSE: WMG) reported a smaller-than-expected Q3 net loss.
• World Wrestling Entertainment Inc. (NYSE: WWE) flat year-over-year earnings fell short of estimtates.

Continue reading Earnings highlights: Toyota, Cisco, ADM, MGM, General Mills, Warner Music and others

Permalink | Email this | Comments

Murdoch Talks Plans: Could WSJ Be Free?, WMG Earnings and Dealing
with Digital (NWS) (WMG) (DJ)

The Hollywood Reporter Reports – Georg Calls From Ca, DJ Inches Closer, WMG Says No Thanks, and Google Takes a Bullet (GOOG) (YHOO) (WMG) (DJ) (NWS)

Sun Valley is host the dozens of media moguls this week where deal making is at a peak for the industry. Murdoch is probably the most visible CEO but listen to the cast for notes on Joost, NING, and Dow Jones. The Buggles sang Video Killed the Radio Star. Life seems to be imitating art these days as YouTube accelerates, Emmis shifts down another gear. The Money and Media podcast, features on StreetIQ, is now a simple application you can add to your Facebook profile. Add Georg and Stephen as your friends http://apps.facebook.com/streetiq (GOOG) (AAPL) (DTV) (WMG) (EMMS) (GMST) (NWS)

The Hollywood Reporter Reports: Mid-Year Stock Update, Movie and a Slurpee?, Media Moguls Group in Sun Valley (SNE) (CBS) (WMG) (BBI) (VMED) (DIS)

The New Price Wars, Dow Jones Update and The Newspaper Effect, Sue Decker Profile... Biker Chick? (YHOO) (DJ) (WMG) (AAPL) (MNI) (BBI) (NFLX) (MOVI) (NWS)