Friday, May 16, 2008

snapshot 5/16/08

Rock's New Economy: Making Money When CDs Don't Sell
The reason? CD sales are no longer the yardstick the band uses. While hip-hop and pop artists ranging from Jay-Z to Britney Spears have long used recordings to sell every- thing from perfume to liquor, rockers are only just starting to think of album sales as a component — rather than the sum of — the commercial equation. Spoon have been actively licensing their music for use in films, television shows and a Jaguar commercial, making money, gaining exposure and moving up from clubs to 3,000-seat venues.

Album sales are down 25 percent since 2000, leading to widespread predictions of the record business' demise. But smart artists and managers are finding new ways to reach fans and make money. "For some bands we represent, there's more licensing income than record sales," says Carol Sue Baker, whose Ocean Park Music Group has been connecting independent artists with music supervisors for movies, TV and advertising agencies since the early 1990s.


Music Services Compared
Wal-Mart might still offer only a no-frills service, but it’s come a long way in three years. Then again, although the uber-retailer’s prices are cheap ($0.88/track for WMA format songs, $0.99 for MP3), there’s still a lot working against it for anyone who’s serious about music, including a library that’s pretty much limited to big names and major new releases only. Where family-friendly edits of tracks exist as well, that’s what they’re guaranteed to carry, so be warned, parental advisories definitely do apply! Also, you can’t search for a track in MP3 or WMA format.

Congrats Chris, that’s the most factually inaccurate review to date!


Handleman Negotiates Financial Breathing Room...
Physical music distributor Handleman Company negotiated some financial breathing room this week, instead of facing the default gauntlet. The company renegotiated its recovery loan package downward, while preserving enough liquidity to keep the lights on.
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According to details shared Thursday, the company reduced its financial loans from $223 million to $163 million, based on revised projections and commitments. "The amended credit facility will help ensure that we have sufficient liquidity to operate our business as we continue to take action to address the rapid and dramatic change under way in the music industry," explained Albert A. Koch, president and chief executive of the company.

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