This Week in News: Monday, August 13, 2007

DRM

Study: Consumers Prefer DRM-Free Tracks
A survey conducted by law firm Olswang Entertainment and Media Research of over 300,000 UK music fans reveals that DRM-free music is preferred by consumers, as well as a willingness to pay more for DRM-free tracks.
By Anthony Bruno, Billboard.biz, August 6, 2007

UMG Ramps Up DRM-Free Testing
Universal Music Group, following the lead of EMI, will begin selling thousands of DRM-free tracks on various digital music outlets in a test to see how DRM-free tracks affect sales. Itunes is excluded from UMG test in an effort by UMG to protest Apple’s dominance of the digital marketplace.
By Anthony Bruno, Billboard.biz, August 9, 2007

Webcasting

Webcasting Royalties: Indies vs. Majors
Live365 has found that 55% of the music played on its various channels is from independent labels. These numbers contrast the CD sales, 87% of which are from major labesl. This research indicates the importance of internet radio to independent artists and highlights how independent music could be damaged by the potential collapse of internet radio brought on by the increase in webcasting royalties.
By John Healy, LA Times, July 26, 2007

Music Industry

Starbucks Records: Number One With A Latte
USC Music Industry Professor praises Starbucks for finding a new and successful business model for selling CDs and points to live music as the new music business where the growth potential exists.
By Jerry Del Colliano, Inside Music Media, August 9, 2007

Going postal
New postage rates have increased the price of mailing CDs by 34%. Although reviewers and radio stations may prefer receiving promotional CDs rather than promotional mp3 files, the Digital Audio Insider wonders whether the cost of sending CDs is proportional to the benefits reaped.
Digital Audio Insider, August 6, 2007

Large Webcasters And SoundExchange to Continue Negotiating Soon
Negotiations between large webcasters and SoundExchange over the CRB ruling are tentatively scheduled to resume in two weeks.
By Eliot Van Buskirk, Wired blog, August 8, 2007

Other

Who has to pay if music plays?
Following ASCAP’s lawsuit against a Seattle restaurant owner for failing to pay royalties to play music inside its venue, the Seattle Times asks intellectual property lawyer Matt Geyman to explain the workings of public performance right.
By Kristi Heim, Seattle Times, August 8, 2007

RIAA Lobbying Expenses Cross $650,000 During First Half
According to documents uncovered by the Associated Press, the RIAA has already spent $650,000 during the first half of 2007 on lobbying expenses alone. These documents provide insight on the RIAA’s budget, which focuses on file-sharing lawsuits and piracy among other issues.
By Paul Reskinoff, DigitalMusicNews, August 7, 2007