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Have Music Sales Finally Hit Bottom?


Though U.S. album sales were down last year for the third year in a row – the longest stretch in 20 years – Nielsen SoundScan numbers still contain some bright spots for 2003. For the full year, album sales declined 3.6% to 667.9 million units from the 693.1 scanned in 2002. But when looking at the fourth quarter, album sales rose 4.7% from the October-December period in 2002. That has caused some executives to proclaim that the industry has hit bottom. Indeed, at mid-year, sales were down 8.6%. That gap was closed by the fourth-quarter surge. What’s more, 2004 is… Read more »

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Brands to Use 'Free' Music to Lure Teens


The great digital music giveaway is about to begin. In the new year, some of the world’s biggest brands will promote their products and services by doling out millions of free downloads through alliances with digital music services. “You’re going to see lots of free music given out via third-party companies,” buymusic.com founder Scott Blum says. “It’s not going to be Apple and iTunes driving the business. It’s going to be companies like Pepsi and other third parties that are promoting digital music on bottle caps and on labels.” Indeed, Apple Computer has inked a deal with Pepsi to give… Read more »

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Apple Says Online Store Sales Top 25 Million Songs


Apple Computer Inc. said on Monday that consumers had bought and downloaded more than 25 million songs from the iconic computer maker’s iTunes online music store. Apple, based in Cupertino, California, also said that more than $1 million worth of iTunes online gift certificates – sold in denominations of $20 to $200 – and allowances have been bought since those features were added in October. “The fact that we’ve done over $1 million in allowances and gift certificates shows a lot of interest on both Mac and Windows,” said Chris Bell, director of iTunes product marketing, in a telephone interview.… Read more »

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How much is digital music worth?


As the early buzz over new music services such as Apple Computer’s iTunes fades, record labels and technology companies are struggling to turn the services into profitable businesses. Speaking at the iHollywood Forum’s Music 2.0 conference in Los Angeles Monday, executives on both sides focused on the 99-cent price tag that has become the market’s standard for downloadable music. Critics say that that price needs to come down if mainstream consumers are to start buying in large numbers, making the Internet a serious factor in the record industry’s bottom line. Record labels say they can’t afford to go lower. “There’s… Read more »

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Sony Music Sings New Copy-Protection Tune


Sony Music, home to such artists as Beyonce Knowles and Bruce Springsteen, on Monday said it plans to introduce new CD technology in Germany that prevents users from copying songs to file-sharing sites, but allows them to make copies for their personal use. The record industry blames its recent sales slump on file-sharing services like KaZaa, which it says are havens for piracy. Last year, major labels issued “copy-protected” CDs that prevent them from being played on computers. The copy-protected discs faced a backlash from customers and music fans, and several lawsuits emerged from some customers that complained these CDs… Read more »

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Napster, Penn State Unveil Online Music Deal


In a move aimed at stemming wide-scale online piracy on college campuses, Penn State University on Thursday reached a deal to offer thousands of students free access to the Napster music service. Penn State President Graham Spanier said the school will offer students access to digital music and limited downloading from Napster’s newly relaunched music service at no cost. Students can also buy permanent downloads that can be burned to CDs or transferred to portable devices for 99 cents each, he said. Napster, the song-swap pioneer that revolutionized online music and turned the music industry upside down, was bought last… Read more »

News

Government, Microsoft Fight Over Online Music


Nearly a year after Microsoft Corp. agreed to end its anticompetitive conduct, the government is raising concerns the world’s largest software maker is trying to use its dominant Windows operating system to influence where customers buy their music online. If the dispute isn’t resolved by week’s end, it could become the first test of Microsoft’s landmark antitrust settlement that was approved by a federal court in October 2002. Lawyers for the Justice Department and 19 state attorneys general have formally complained to a federal judge about a design feature of Windows that compels consumers who buy music online to use… Read more »

News

Apple Set to Unveil iTunes for Windows This Week


Coming soon to a Windows PC near you: Apple Computer Inc.’s. popular iTunes online music store, which analysts say will join an already crowded market that could mute its chances of repeating the success of the Macintosh-only version. The computer maker is set to unveil this week the long-promised Windows-compatible version of its online music service. Last week, it sent invitations to reporters for an event on Thursday in San Francisco proclaiming, “The year’s biggest music story is about to get even bigger.” An Apple spokesman declined further comment. Yet now, some analysts say that while iTunes for Windows may… Read more »

News

Thrice head out with Thursday, Play Apple Store


THRICE and THURSDAY will perform at grand openings for Apple retail stores in Santa Monica, California, and New York City, respectively, on October 15th. The music performed will be made available for exclusive purchase at the iTunes Music Store and the sets will also be videotaped and placed for download at apple.com. The two bands will begin a joint tour on October 17th in Pittston, Pennsylvania..

News

EMusic to Discontinue Unlimited Download Service


Online music company EMusic plans to discontinue its unlimited download service and replace it with a more limited offering, the company said on its Web site this week. Vivendi Universal’s VUNet USA recently signed a deal to sell EMusic.com Inc. to Dimensional Associates LLC, a privately held venture capital firm based in New York, for undisclosed terms. The deal is scheduled to close at the end of October. EMusic said that as of Nov. 8, it will replace its unlimited service offering with two subscription plans. The basic plan offers up to 40 downloads for $9.99 per month, and the… Read more »

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