MusicDish Network THIS WEEK IN THE MUSIC BIZ 
June 27, 2005 Edition

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THIS WEEK IN THE MUSIC BIZ
June 27, 2005 Edition

* SoundExchange Board Extends Deadline For Artists/Labels
* A Matter Of Substance OMNIMEDIA Unveils P2P Piracy Elimination Platform
* Promo Only MPE Announces Record Numbers In United States
* Artemis Records Announces The Creation Of The Artemis Records Lifestyle Group
* Commissioner Adelstein Applauds New FCC Fact Sheet On Payola Rules
* UK Music Industry Welcomes Government Proposals For A Music Council
* Beethoven Downloads Receive More Than 600,000 Requests
* Pop3 Media Corp. And Roxxy Corporation Sign Letter Of Intent
* One In Three Music Discs Is Illegal
* Digital Music Landscape Shifting, But Slowly

SoundExchange Board Extends Deadline For Artists/Labels To Receive Royalties From First Distribution

On Thursday, June 9, 2005, the SoundExchange Board of Directors met in New York City and decided to extend the deadline for releasing previously undistributed artist and label royalties from July 31, 2005 to December 31, 2005. Under Copyright Office regulations, SoundExchange is permitted to use royalties payable to artists and labels that are unidentified or unable to be located after a period of three years to offset its own costs of operation.

Royalties paid for the years 1996 ­ 2000, were subject to the July 31st deadline. Artists and labels that do not come forward within the next six months to claim these royalties may lose their right to do so under federal regulations.

John L. Simson, Executive Director, commented, "We are feverishly trying to locate unpaid artists and record companies and have implemented a number of strategies to do so. Our Board recognizes that these programs take time to gain momentum and their decision to extend the deadline demonstrates their commitment to pay the creators of the music we love."

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A Matter Of Substance OMNIMEDIA Unveils P2P Piracy Elimination Platform

A Matter of Substance OmniMedia [AMOS] has partnered with Intent MediaWorks to launch its "Piracy Prevention Platform"- a state of the art encryption, tracking, and distribution system, built to stop the theft of music and films through the Internet.

AMOS/INTENT announced it has developed and implemented the solution to the piracy problem; which the critical supreme-court ruling of MGM vs. Grokster pulls to the headlines- Making P2P the place where all eyes are pointed at for the future of the entertainment business.

The new AMOS/INTENT platform encrypts music and film files, launches it into the P2P jungle attached to a sponsor-ad, essentially making the track a Ofree gift¹ from advertiser to consumer.

The same encryption can alternatively, completely block the spread of the file into the P2P stream. ³To address these issues and be the solution AMOS has partnered with Intent MediaWorks and employed a new consumer friendly business-model for protection and distribution for all forms of media content on the Web² said, Eytan Rockaway, AMOS Co-Founder and CEO.

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Promo Only MPE Announces Record Numbers In United States

In the continued effort to bring digital delivery to the music industry, Promo Only MPE has made a huge impression. As the only digital distribution system used exclusively by a major United States label and the only distribution service that has delivered over 1,200 tracks to US radio, the Promo Only MPE System has solidified its position as the first choice for digital distribution for radio.

Promo Only MPE in partnership with Destiny Media Technologies announced today that the Promo Only MPE System has distributed over six-hundred tracks exclusively for Universal Music Group (UMG) since its launch in October of 2004 and roughly 1,200 tracks for all labels on the system. UMG tracks make up over 50% of the top 25 tracks on radio charts, including the top three tracks at the time of this release, and were sent through the Promo Only MPE System exclusively. Promo Only MPE also announced with technology partner, Destiny Media Technologies that the system has delivered in total over 1,200 tracks to over 575,000 users in the United States.

Promo Only MPE, which has delivered more than five times the tracks of any competitor in the US and has delivered more than 50% of charted singles, distributes to all formats of radio. This widespread acceptance of the system, made easier by the revolutionary addition of Promo Only MPE to Mediabase 24/7, the industry's most commonly used tracking system, has helped establish Promo Only MPE as the leader in digital distribution.

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Artemis Records Announces The Creation Of The Artemis Records Lifestyle Group

Daniel Glass, CEO/President of Artemis Records, is proud to announce the creation of the Artemis Records Lifestyle Group. This newly created branch will sign artists and market existing artists signed to Artemis Records from the Vanguard Classics classical and Triloka world music rosters, as well as other Artemis Records signings in additional genres.

Leading the new division will be Greg Barbero, currently President of Artemis Classics/Vanguard Classics. The A & R for this new group will be overseen by Mitchell Markus, who will remain President, Triloka Records. Joining Artemis Records as Director of Marketing for the Lifestyle Group will be Rob Plotz, formerly of Arista Records, the RCA Victor Group and BMG Classics.

Upcoming new releases through the Lifestyle Group include a poetry and music project from world-famous Afropean chanteuses Les Nubians, classical pianist Leon Fleisher, heritage rocker Jesse Colin Young, yoga chantmaster Krishna Das, the Boston Pops Orchestra, the American string quartet Miro Quartet, and the composer Steven Mercurio. This team will also market the Vanguard Classics, Royal Philharmonic and Pro Arte classical library, as well as the Triloka Records catalogue.

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Commissioner Adelstein Applauds New FCC Fact Sheet On Payola Rules

Commissioner Adelstein applauded the issuance by the FCC of a Fact Sheet on "FCC's Payola Rules" that provides critical information about "What the Payola Rules Say" and "What You Can Do if You Think the Rules Have Been Violated."

Adelstein said, "We are enlisting everyone who watches and listens to the media in the effort to catch violations of our payola rules. Like a Neighborhood Watch program, putting viewers on alert will help us enforce the law and deter future abuses. It serves as another reminder that there is an unequivocal, legal obligation -- up and down the chain of production and distribution -- to disclose all forms of payola."

"Broadcasters and cable operators really need to take these rules seriously. There are major penalties involved that can include up to a year in jail. But even beyond the penalties, it is the longstanding policy of this country that the American people have a right to know who is promoting a product, policy or message to them," said Adelstein.

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UK Music Industry Welcomes Government Proposals For A Music Council

The British Music industry welcomed the Government's announcement to help fund a study to assess the viability and possible shape of a dedicated Music Council to unite the music sector on key issues and be a partner to government in developing music policies.

Speaking at the IPPR conference on 'Creative Britannia: Turning Ideas into Business', James Purnell, Minister for Creative Industries and Tourism announced that the Government wanted "to make Britain the world's creative hub." And as part of this drive to support Britain's creative industries, he added that "DCMS and the music industry will carry out a feasibility study to examine the case for setting up a Music Council, how it might operate and how it might be funded".

The idea of music having a counterpart to the Film and Design Councils has gained currency over recent months, as the established Music Business Forum (MBF) - an informal grouping of 21 organisations across the music sector - has examined how better to work with Government. A Music Council would help join up and build on the existing government initiatives such as the Live Music Forum, the Music Manifesto and the IP Forum for the Creative Industries in which the music industry has been enthusiastically engaged.

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Beethoven Downloads Receive More Than 600,000 Requests

Live performances of Beethoven's first five symphonies, broadcast as part of The Beethoven Experience on BBC Radio 3, have amassed an incredible 657,399 download requests during a week long trial.

The downloads ­ launched on 6 June - offered complete Radio 3 programmes containing live performances of the symphonies by the BBC Philharmonic in Manchester, conducted by Gianandrea Noseda.

They were available free of charge and therefore not eligible for the Official UK Download or Top 40 Singles charts, although the public's enthusiasm for the programmes is evident from the individual totals:

Symphony 1 (6 to 13 June) - 164,662
Symphony 2 (7 to 14 June) - 154,496
Symphony 3 (6 to 13 June) - 89,318
Symphony 4 (7 to 14 June) - 108,958
Symphony 5 (7 to 14 June) - 139,905

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Pop3 Media Corp. And Roxxy Corporation Sign Letter Of Intent To Create A Revolutionary New Music Company

Pop3 Media Corp. and Roxxy Corporation announced that the companies have entered into a letter of intent whereby Roxxy Corporation will acquire a 66% interest in Pop3's wholly owned subsidiary, Viastar Distribution Group, Inc. "VDG," forming a revolutionary new music company, Controversial Entertainment Corporation. The transaction, consisting of stock and cash, when completed, will provide Pop3's shareholders with a 33% stake in the new company.

Roxxy's management will operate the company from headquarters in Los Angeles and will change its corporate name to Controversial Entertainment Corporation in the coming weeks. The Companies intend to complete and execute the definitive agreement by July 8th, 2005, and seek shareholder approval immediately thereafter.

Pop3's CEO, John D. Aquilino, stated, "This alliance will allow Pop3 to achieve its strategic vision of creating a new paradigm in the music industry. One that is focused on supporting the artist and the music they create while embracing emerging technologies and giving consumers access to a variety of artists through a variety of media."

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One In Three Music Discs Is Illegal But Fight Back Starts To Show Results

One in three music discs sold worldwide is an illegal copy, creating a US$4.6 billion music pirate market that destroys jobs, kills investment and funds organized crime.

Despite the huge scale of the problem, some governments have taken encouraging steps to address music piracy in the last 18 months, according to the recording industry Commercial Piracy Report 2005, which is published by IFPI.

A total of 1.2 billion pirate music discs were sold in 2004 - 34% of all discs sold worldwide. But growth in disc piracy has slowed to its lowest level in five years, partly thanks to stepped up enforcement efforts in countries including Mexico, Brazil, Hong Kong, Paraguay and Spain.

Industry and government enforcement efforts are also reaping results. The past year saw record levels of pirate production taken out of action, while seizures of commercial CD burning equipment in 2004 were twice the levels of 2003.

Sales of pirate music exceed the legitimate market in a record 31 countries in 2004 - including, for the first time, Chile, Czech Republic, Greece, India and Turkey.

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Digital Music Landscape Shifting, But Slowly

With a Supreme Court decision looming in the MGM vs. Grokster case, a case poised to dramatically alter the digital landscape as we know it, The NPD Group released its latest data on the state of the digital music marketplace vis-à-vis peer-to- peer (P2P) file sharing.

According to NPD, although the paid download digital music marketplace continues to grow and demonstrates the potential for more growth in the future, downloading free digital content from P2P services continues to draw the vast majority of downloads in the United States. NPD noted that in March 2005, 243 million songs were downloaded from P2P services. By comparison, 26 million songs were purchased from digital music stores during that same month.

Two years ago there were nearly 20 P2P music downloading households in the U.S. for every household in which a member paid to download music files. By March 2005 that gap had narrowed to almost two to one. Though paid digital music download services have hurdles to overcome, they are making progress as an alternative for many digital music consumers.

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Provided by the MusicDish Network. Copyright © Tag It 2005 - Republished with Permission