snapshot 7/9/08

EMI Taking Vinyl Sales Seriously - Reissues Radiohead, Coldplay
EMI Music has announced that it will be launching a vinyl re-issue initiative in August, hoping to generate additional revenue based on the latest upswing in vinyl sales. The reissue series, dubbed “From the Capitol Vaults,” will debut with eight, out-of-print titles including Radiohead, Coldplay, A Perfect Circle, and the Steve Miller Band.


California Can't Resist: Wants To Tax iTunes Downloads Again
There are some states that already include a sales tax on internet downloads for things like iTunes purchases (even if the rationale for the tax doesn't seem to exist beyond "the state needs money"). Every so often various other state politicians start itching to add an iTunes download tax. The latest is California. Some state politicians made a bunch of news back in April for proposing just such a plan, but the resulting publicity and anger from California residents made sure that proposal was quickly shot down. So what did the main sponsor of that proposal do? He waited less than two months and proposed a nearly identical tax on digital downloads. Of course, all this will really do is push more people to look at alternatives, legal or not, because of the greater expense associated with digital downloads (a product that should get cheaper over time, rather than more expensive).


INgrooves Ropes Jimmy Buffett, Paul Wall, Chamillionaire...
Digital distributor and label INgrooves has now secured a fresh stable of artist deals, including those involving Jimmy Buffett, Everlast, John Michael Montgomery, Paul Wall, and Chamillionaire, among others. The relationships closely follow a strategic investment from Universal Music Group, one that allows the major to tap into the proprietary, INgrooves digital distribution platform.

That has raised the profile of the San Francisco-based INgrooves, a longtime player in the space. The artists come through a host of label partnerships, including Mailboat Records (Jimmy Buffett); Stringtown Records (Montgomery); K-Tel International (Chubby Checker, Tina Turner, Little Richard); SMC Recordings (Killer Mike, Pastor Troy); and Paid In Full Entertainment (Paul Wall, Chamillionaire). The Buffett relationship is focused on mobile distribution and content licensing, according INgrooves chief executive Robb McDaniels.


What's next, Google Autos or Google Music?
By scrutinizing the traffic Google searches produce, Internet analysis firm Hitwise in January predicted that Google might launch a virtual world. Lo and behold, Google launched Lively on Tuesday. So what's next?

Google Autos or Google Music are the guesses that Hitwise hazarded Wednesday. "Our thinking was that Google might want to fill natural gaps in its portfolio of offerings based on the interests of its users. We looked at which categories are receiving the most traffic from Google in which Google does not have its own property," said Hitwise's Heather Hopkins in a blog post.


myAWOL: A Music Label For The Digital Age
myAWOL (My Artists Without Labels) is looking to show the big four how it’s done. The site is taking a multi-pronged approach to tackle the music industry with the web: first, it will roll out a professional database to help establish itself as an authority in the space. Then, this Fall, it will introduce a consumer site that will function as a mix between a music community, online television channel, and independent music label.

Lofty goals to be sure, but the people associated with myAWOL may have the backing and experience to pull it off. The site is the brainchild of Andrew Bentley, an entrepreneur with a head-turning resume that includes stints as the CFO of Virgin Media, the CFO of EMI, and the CEO of EMI Music/Asia Pacific (before they went on a lawsuit spree). And you can be sure that during his time as a music executive, he’s made some friends. Within the next month, the site will be rolling out a professional-facing music database (an “imdb for music”). The goal of the site is to become an authoritative resource for everyone in the music industry, from studio musicians and equipment managers to studio execs. Bentley says that while this portion of the site may not have much appeal to consumers, it will help the site gain credibility while offering a much-needed service to the industry.

myAWOL’s consumer-facing site is where the real excitement will lie, and while it won’t be launching until early September, it may well be worth the wait. Unlike many music sites that effectively serve as storefronts for artists (leaving little reason for users to come back), myAWOL is focusing on content creation. The site will produce daily content for what amounts to an online television channel, where it will feature concerts, interviews, and TRL-like daily programming that will be distributed both online and through podcasts. Footage will come from submitted tapes, studio filming, and concerts put on by the site (there’s a myAWOL concert at The Roxy later this month).


Who Needs Music Labels? Last.fm Starts Paying Royalties To Unsigned Artists
Music-streaming service Last.fm is now paying unsigned artists royalties for every song played on its service. Since the company announced the program last January, 170,000 artists and small music labels have signed up for it and uploaded 450,000 tracks.

What Last.fm is doing here is creating an alternative to the official royalty-collecting organization for musicians (i.e., SoundExchange). Last year, the royalty rates for music streamed over the Internet were raised, making it more difficult for ad-supported music startups to stay in business. Last.fm got bought by CBS, so it’s not in danger of going under. And for any song owned by a label or artist who participates in SoundExchange, Last.fm continues to pay the going Internet radio royalty rate. But it is beginning to bypass Sound Exchange by giving new, unsigned artists an alternative.