Global Decline to Continue
Jim Bessman, 06 September 2001
London band ABN-AMRO predicts a worldwide music industry drop to $36.3 billion this year, amounting to 1.7% decline in value from last year. This increases the 1.3% downturn from the preceding year-and nearly triples the bank's initial forecast of a 0.6% decline. Contributing negative factors cited include an anemic economic environment, weak release schedules, CD-R copying, downloads, and competition from other entertainment formats.
At last week's meeting of the California State Senate's select committee on the entertainment industry, EMI Recorded Music, North America's deputy president Roy Lott warned that labels might be forced to move their operations out of the state if the senate repeals the exemption of recording artists from the state's Seven Year Statute, which limits to seven years the time someone can be held to a personal services contract. Artists like Patti Austin and Don Henley countered that the exemption was discriminatory and unfairly binding. Further discussions are expected in January.
The U.S. Congressional Hispanic Caucus, meanwhile, has scheduled a hearing in San Antonio to consider charges of unfair labor practices and discrimination against Tejano and Latin musicians that have been leveled against the major labels. The focus is on Sony Discos and EMI Latin (which produce approximately half of all Latin music sales), which according to the American Federation of Musicians, does not abide by the Phonograph Record Label Agreement, which safeguards the rights of the union's 110,000 members. At issue is equal pay from all labels for equal work, as symbolized by the practice of paying Tejano/Latino musicians by the song, instead of the more lucrative hourly rate typically paid to musicians in other genres. "They've been making big bucks at the Tejano and Latin artists' expense," said Rep. Ciro Rodriguez of Texas, who will chair the hearing. "We are going to hold them accountable."
Over in Dotcom Land, Zomba Music Group, which had sued MP3.com for copyright-infringement over the unauthorized use of its music in the service, has settled and will now license content to MP3.com for use in the MyMP3 locker service. Also at MP3.com, president Robin Richards has been appointed chairman/CEO, replacing Michael Robertson, who stepped down after Vivendi Universal finalized its acquisition of the music portal last week. Robertson, who will stay with MP3.com as an advisor, has also taken a senior position at software developer Lindows.
Cable music channel MuchMusic USA is set to run videos for major label artists produced by customers of Universal Music Group's GetMusic portal. The link is part of GetMusic's push to expand its brand identification into the offline arena, and involves videos created on the web site using the "Videolab" editing application, which allows use of animation and other visual elements. Submitted videos will then be cut to the top 15, which will then be featured and voted on at the channel's mmusa.tv site--with the winner getting regular rotation on the channel for a month.
You'd think that amateur videomakers could only improve on a music video channel's programming. But I wonder why any band would care about, or even allow, fans to remix their recordings. Yet winning remixes of New Order's new single "Crystal" by participants in a contest at Acidplanet.com (audio software developer Sonic Foundry's web site) will be posted on the group's site and considered by the band for future release. But this is just part of a growing album promotional trend: Audio software developer Magix's web site, magixmusic.com, offered a similar re-mix promotion for Depeche Mode, and Universal Music Group's Def Jam is making available audio remixing software along with music from hip-hop recordings that it's pushing.
Speaking of hip-hop, the Beastie Boys have shuttered their debt-ridden Grand Royal Records label after an eight-year run highlighted by hit albums from Luscious Jackson. "Our intentions were always simply to create a home for exciting music and the people who were passionate about it," said Beastie Boys' Mike D. "It really sucks that we can't continue to do that."
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