DIGITAL MUSIC NEWS

Brookings Report: Digital Music Royalty Landscape Must Be Level

The issue of performance royalty fees has dangling over the greater entertainment industry since the Digital Millennium Copyright Act was signed in 1996, and today the payment structure of those fees play a critical role in shaping the digital music broadcasting platform. Essentially, if rates are too high, the ability of digital broadcasters to provide the public with access to music is impeded. If rates are too low, recording artists do not receive a fair return on their endeavors. And if rates are inconsistent across different delivery mechanisms, then some business models are favored over others. That's the position taken by the Brookings Institution, which this week released a "white paper" that examines some "inequities" in the rates that different companies and industries are charged for the rights to deliver the same music. For example, Internet radio companies can be compelled to pay over 60% of their revenue in sound recording performance royalties, while Sirius XM currently pays only 8% of gross revenue. To make matters even more complicated, these rates are evolving over time in complex and sometimes unpredictable ways, making it nearly impossible for digital audio broadcasters to make reliable projections regarding their future content acquisition costs. As the Brookings paper points out, the current copyright royalty landscape creates a significant imbalance among current market participants. "The good news is that these shortcomings can be addressed through simple, focused legislation to provide all non-interactive digital music broadcasters - not just a favored few - with access to statutory royalty rates," the report says. "This would stimulate innovation and growth in a key segment of the broadcasting industry." [Full story: Brookings Institution]

SiriusXM Launches On Demand Service For Web, iOS Devices   As SiriusXM CEO Mel Karmazin predicted on a recent Q2 earnings call, the satellite radio company this week announced a new On Demand subscription option that provides users with access to a number of radio stations to listen to on their own schedule. "On Demand access to SiriusXM programming broadens the availability of our exclusive content," Bob Law, SVP/GM of SiriusXM streaming services and products, said in a statement. As reported by PC Magazine, new content will be updated daily, SiriusXM said, while a regularly updated "Featured" section will provide a space for users to discover more content, including interviews, new shows, "pop-up" channels, and seasonal series. For the first time, Sirius also is pulling selections from its expansive audio archives, including exclusive shows, specials, and series. The On Demand service currently is available to those listening via Sirius' online media player, and well as iOS users. (On Demand access will soon be added for Android devices.) Subscribers also will receive automatic push notifications when favorite programs become available. [Full story: PC Magazine]

Total U.K. Digital Album Sales Pass 100 Million Mark   Total sales of digital albums in the U.K. just passed the 100 million mark, powered in part by the success of such popular singers as Adele and Ed Sheeran. According to figures compiled by the Official Charts Company, digital releases now account for more than a third (34%) of the total album sales in that country. Geoff Taylor, chief executive of the BPI, said, "Sales of digital albums are surging ahead as British consumers embrace the convenience, value, and choice offered by online services. As our athletes compete against the best in the world, British artists have taken the gold and silver positions in the best-selling digital artist albums of all time, and six places in the top ten. With big releases to come from Rita Ora, The Script, Elbow, and Stooshe, digital album sales should continue to grow strongly." Both Adele's hit album "21" and Sheeran's "+" have sold more than 250,000 copies online, and take the top two places in a chart of the best-selling digital albums of all time in the UK. [Full story: Telegraph.co.uk]

Hertz Launches Platform To Offer Free Music Downloads   In yet another sign of the increasing value (and appeal) of music, Hertz this week announced it will be sweetening its car rental deals by offering Gold Plus Rewards members free music downloads. The company's new Hertz Music Store, defined as "the digital dashboard for its Hertz's Movin' with Music program," lets renters acquire music from thousands of artists, and any Gold Plus Rewards member who rents a car through August 31 gets three free song downloads per rental. "For Hertz customers, the connection between the open road and great music runs deep," Hertz Chairman/CEO Mark Frissora commented in a statement. "With the Hertz Music Store, loyal Hertz customers will have a new way to download, for free, the music they love, making their travel experiences even more enjoyable." The Movin' with Music platform follows the "Best Seats Sweepstakes" collaboration with LiveNation Entertainment earlier this summer, a multi-year sponsorship and marketing alliance that announced the 2012 introduction of Hertz Live Radio to be streamed at Hertz facilities, on Hertz buses, and in the Hertz Music Store. "This is promotion and eCommerce at its best - delivering enhanced value to consumers by providing easy access to Hertz and generating sales to our bottom line while defining and building brand affinity," Frissora said. [Full story: Brand Channel]

United Airlines Adds Digital Music Downloads To MileagePlus Program   United Airlines this week announced it was adding a digital download music store to its MileagePlus Program, allowing its frequent flier members to redeem miles by turning them in for music. As reported by Billboard, the store features 7 million tracks and is run by Choose Digital, a company that plans on offering a turnkey solution that will allow other frequent buyer clubs and customer loyalty programs to offer music to their members. The store also will offer movies and is planning to incorporate television programs, books, and video games in the future. Riffing on a tired cliché, Choose Digital CEO Stephen Humphreys notes that "Content has to be the king," and says "the store needs to be able to offer the favorite bands of everyone." So far, Humphreys says he has signed up the four major recorded music companies and some large independent music distributors and labels. He acknowledges that Choose Digital had to give some suppliers advances, in order to sign them up. "Consumers are very savvy and know how much their points are worth," Humphreys continues. "They are more connected than ever, yet the loyalty and incentives business is strangely disconnected. We want them to spend their points on stuff they are buying anyway." [Full story: Billboard]

Amazon's Cloud Player Now Works On Sonos, Roku May Be Next   Just a few short weeks ago Amazon updated its Cloud Player with such new audio features as Scan and Match technology, as well as licensing deals with a number of independent record labels. At that time the company announced that Sonos support would be "coming soon" - a promise that became reality this week, with the Cloud Player now working on the Sonos Wireless HiFi System. Amazon also revealed it will be adding more support for more devices later this year, with Roku likely to be next in line. The Sonos move gives Amazon the ability to draw in add more users to the "millions" it says already are using the Player. "Our goal is to enable customers to enjoy all their music, wherever they are, and on any device," said Steve Boom, Amazon's VP/Digital Music. "Launching on Sonos today is an important part of that strategy, as our customers have been asking us to add Sonos to the list of compatible Cloud Player devices ever since we launched Cloud Player. We will continue to add support for more devices and platforms later this year." [Full story: Tech Crunch]

Al Bell Presents American Soul Music ... And American Soul TV

If you're into classic and contemporary Soul, R&B, Blues, Gospel, Jazz, Hip-Hop Soul, Rap Soul, and Neo-Soul, we invite you to listen to Al Bell Presents American Soul Music. Former Stax Records owner and Motown Records Group President Al Bell personally has programmed this awesome radio station online, presenting your favorites from the 1960s and '70s [and some '80s], a lot of the best new music that's being released today, and some real gems you haven't heard in a long, long time. Come to www.AlBellPresents.Com

 and hear it for yourself!