ANALYSTS: WMG A 'BUY'
-- Needham & Company analysts have reiterated their buy rating on Warner Music Group and have a target price of $8.50. Shares of Warner closed at $4.57 on Friday and were down 11.3% in the last five days of trading. The analysts lowered their estimate for Warner's Fiscal Q3 2010 earnings per share to a loss of $0.50 from a loss of $0.12. For the full fiscal year, Needham lowered the estimate to a loss of $0.86 per share from a loss of $0.43. Needham is an investment banking and asset management firm that focuses only on growth companies. (American Banking News)
CONTENT VS. DISTRO
-- If you read Billboard's Q&A with Jonathan Knee, co-author of "Curse of the Mogul," you know he believes there is value in the "pipes" that deliver content to consumers. He does not believe there is long term value in companies that create the content that will be delivered by those pipes. John Malone of Liberty Media is excited about cable companies. "Cable has come through technologically in great shape relative to its competitors. The telcos, unless they're willing to spend a massive amount of capital-like [Verizon Communications Inc.'s] Fios has-have run out of steam in terms of the speed of their Internet capabilities." (Wall Street Journal)
KNITTING FACTORY HEADED TO SACRAMENTO?
-- Downtown Sacramento may get a Knitting Factory music venue if city council members vote for a plan by four developers to remake a stretch of K Street. The 700 block of K Street would house a residential units, shops and a 2,000-capacity Knitting Factory. Knitting Factory venues now reside in Reno, NV; Spokane, WA; and Boise, ID in addition to the original New York and Los Angeles venues. (Sacramento Bee)
RIAA KEEPING AFTER LIMEWIRE
The RIAA is keeping after LimeWire founder Mark Gordon, asking the court involved in the ongoing copyright lawsuit to freeze both their assets. The RIAA wants the court to freeze the assets of both Gordon and the company so he can't hide LimeWire assets in personal accounts in an attempt to avoid paying any potential damages. (CNET) - Antony Bruno
NEW ROYALTY RATES INTRODUCED
-- Canada's Copyright Board introduced two new rates to the royalties owed by radio stations to copyright holders. Both royalties are related to the right to make copies of a sound recording. The first is a rate of 1.2% of gross income for AVLA/SOPROQ, which represent owners of sound recordings. The second is 0.02% for ArtistI, the collective society that represents mainly French-speaking performers from Quebec. The other two artist collectives, ACTRA PRS and AFM Canada, did not file for a tariff. Both rates apply to gross incomes above the $1.25 million threshold. (FYI Music, PDF of Board's Decision)
THE TRADE ORGS: CEO SALARY COMPARISONS
-- As Digital Music News reported on Saturday, RIAA CEO Mitch Bainwol made $2.03 million in compensation in the 2008 tax year. Is that high or low? It's hard to say without the proper context. So it helps to know that Daniel Glickman, the chairman and CEO of the Motion Picture Association of America, made $1.36 million in 2008. Gary Shapiro, president and CEO of the Consumer Electronics Association made $1.77 million in 2008. David Rehr, then the president and CEO of the National Association of Broadcasters, was paid $797,000 in 2008 (he left in 2009). (Digital Music News)
-- Spotify is available for Linux - but without support for local files.
-- How podcasts are changing the dance music scene. (The Guardian)
ANALYSTS: WMG A 'BUY'