GRAINGE SHIFTS TO LA
-- Lucian Grainge, the new co-CEO of Universal Music Group, will be based in Los Angeles rather than New York. The chief executives of the other major music groups tend to be based in New York – although Warner Music Group’s Edgar Bronfman Jr. is currently based in London. Grainge will share CEO duties with outgoing CEO Doug Morris until January.
“People close to Universal said Mr. Grainge realized that a disproportionate share of Universal's actual operations—from distribution to music publishing—happen in Los Angeles,” writes Ethan Smith. “He will be down the hall from Jimmy Iovine, chairman of Universal's largest group, Interscope Geffen A&M records.” (Wall Street Journal)
HEDGE FUND GIVES LIVE NATION THUMBS UP
-- Hedge fund Corsair Capital Management thinks Live Nation is a good investment. In its second-quarter letter to investors, Corsair explained that reduced 2010 earnings guidelines (from the July 15 investors presentation) has hurt the company’s stock but argued it has long-term value. “While near term earnings are being depressed by cyclical headwinds,” the company wrote, “the recent stock price puts the company at 10-12x free cash flow during a softer than average year with secular tailwinds at its back. We believe this is an attractive price for an oligopolistic business with modest capital requirements.”
In other words, Corsair believes weak ticket sales are the result of poor economic conditions and is optimistic for the company’s long-term prospects. “So, why should you care what Corsair has to say?” asks Seeking Alpha. “Well, because it has returned an impressive 14.9% annualized since inception in 1991.” (Seeking Alpha)
'I BUY MUSIC. NOT MUSIC T-SHIRTS'
-- “I buy music. Not music T-shirts.” is a new T-shirt created by Bill Rosenblatt, author, founder of GiantSteps Media Technology Strategies and editor of the Copyright & Technology blog. It’s an obvious dissent from the popular – in some circles – idea that music should be (or will eventually be) free and artists should earn a living by selling related items like T-shirts. (Here in Nashville, people often wonder just how mechanical royalties will be attached to T-shirt sales in order to compensate songwriters.)
“Whether or not you are a fan of DRM, rights technologies,” Rosenblatt writes, “ISP subscriber levies, or other means to preserve revenue from copyrights, the point is simple: artists should be able to focus on and make their livings from what they do best: creating content.” (Zazzle, Copyright & Technology)
BAND FIGHTS ALBUM LEAK WITH TWITTER
-- Rock band Les Savy Fav has taken a few steps – one common, one unique – to deal with the leak of its upcoming album. First, the band set up a web page for its “Root for Ruin” album that includes the obligatory PayPal link for people who may have downloaded the album for free. The page also offers special “leaded edition” album artwork.
Then the band created a Twitter account under the user name “u_took_my_music” and is following people believe to have taken a leaked copy without paying (just mentioning the leak in a Twitter post is enough reason to be followed). @u_took_my_music is currently following 58 people and trying to get them to the PayPal donation page. Unfortunately for both band and fans, it appears this particular method has a high probability of false positives. A few innocents were wrongly “accused” of partaking in the leak. “Thanks for assuming that I'd downloaded the leaked album,” one person wrote to @u_took_my_music. “I didn't. Now I don't even want to buy it anymore.” (@utookmymusic, Daily Rind)
- Creative Artists Agency (CAA) will now represent Chris Brown in all areas.
GRAINGE SHIFTS TO LA