Universal Music Eyes a Subscription Plan…
Posted October 15, 2007 — in Music News
Universal Music Group to compete with iTunes: The world’s most powerful music executive aims to join forces with other record companies to launch an industry-owned subscription service. Universal CEO Doug Morris is in talks with Sony BMG Music and Warner Music Group as potential partners. Together the three would control about 75% of the music sold in the U.S. The goal is to get hardware makers or cell carriers to absorb the cost of a roughly $5-per-month subscription fee so consumers get a device with all-you-can-eat music that’s free. Music companies would collect the subscription fee, while hardware makers theoretically would move many more players. (Business Week)
‘She’s All Yours’: Warner Music passed along a report from a Bank of America subsidiary explaining why the material girl is no longer worth a nine-digit payday. The big risk it to overpay for an artist that does not seem to be generating the revenue to support the contract being discussed. Madonna will turn 60 years old in the last year of the proposed deal, it is “fantastic” for her but does not “make economic sense” for WMG. Lastly, her loss will not meaningfully impact Warner’s near-term sales. (Variety)
Platinum selling nineties band Sponge has signed with Icon Entertainment.
Los Angeles based indie act The Sound Of Animals Fighting signed to Epitaph
The MySpace for The Sounds Of Animals Fighting says they are on Equal Vision. And they have members of Chiodos and Circa Survive in the band, who are also on EVR.
Hmmm….
Comment by Tim Towner — October 15, 2007 @ 9:00 am
Yeah…not too sure about the epitaph part. I’m not sure how that would work contractually since it is pretty much an indie/emo supergroup
.
Comment by Daniel — October 15, 2007 @ 9:47 am
“indie/emo supergroup”
I love that!
Comment by Carlos — October 15, 2007 @ 10:13 am
“The goal is to get hardware makers or cell carriers to absorb the cost of a roughly $5-per-month subscription fee so consumers get a device with all-you-can-eat music that’s free.”
I guess for the fans.. that would be cool. If I was a device maker.. I wouldn’t be too happy with that.
Comment by Cartel — October 15, 2007 @ 10:21 am
Yeah, I forgot about that part, Daniel.
Doesn’t seem like the EVR bands could be apart of this, contractually.
Comment by Tim Towner — October 15, 2007 @ 2:22 pm
Music Ladies and Gentlemen is slowly but surely becoming a “SIDE DISH”
“Super Size that meal, and get a “Heart Felt” song to wash it down with!”
Comment by Michael Barile — October 20, 2007 @ 10:14 am