Business Matters is a daily column that offers insight, analysis and opinion on the day's news.

-- On the day MySpace Music closed its purchase of Imeem, the domain was redirected to and visitors were greeted with, "Imeem users, welcome to MySpace Music." The splash page explained that "MySpace is working to migrate your Imeem playlist to MySpace Music" (although another page promised MySpace would "attempt" to transition users' playlists). A bare FAQ page said MySpace Music had "acquired certain assets of Imeem" and will integrate them into the site in the coming weeks. Imeem users may notice a difference in quality - MySpace Music is inferior to the service it acquired - and may not stick around. This would be a good time for other services to woo former Imeem users (if only there were more than a handful of services remaining). (

-- Virgin Media, the British ISP, will scrap its plans to create an unlimited MP3 subscription model, according to reports on Wednesday. Universal Music Group and EMI are on board, but other labels appear not to want to sign up with an unlimited plan. That could mean Virgin will instead launch a tiered service with limited downloads. The company's failure to gather a consensus for an unlimited plan shows that labels have varying levels of interest in such bold experimentation (even when the party attempting the new service could leverage its role in anti-piracy campaigns to its benefit). And it shows how a few holdouts can thwart a planned new service. A thin catalog just wouldn't be enough. (New Media Age)

-- Why is Google CEO Eric Schmidt happy to be involved with Vevo? Because the company is based on content belonging to others. It wants media companies to flourish. CNET's Greg Sandoval explains: "At the Vevo party, Schmidt said Google couldn't be happier with the situation. This is what he's done for over a year now, held out his hand to big newspapers, film studios, TV networks, and book publishers. By taking a backup role in Vevo, Google sends a message that the rogue image is garbage and the company is prepared to go a long way--even give up decision-making power--to help partners grow their businesses." (Media Maverick)

-- The music business has been the canary in the entertainment industry's coalmine. So the movie industry has had a head start on how to address consumers' adoption of digital technologies and the implications. But few would have thought one of the biggest threats would come from a hits-driven, inexpensive and a no-frills DVD rental kiosk company such as Redbox. According to a study by the Los Angeles Economic Development Corp., Redbox's low-cost DVD rental business will cost the entertainment business "$1 billion or more" dollars in revenue (an amazingly round number). "The Economic Implications of Low-Cost DVD Rentals" outlines the damage that could be done: Over $30 million in tax revenue, at least $1.5 billion in economic output and at least 9,280 jobs. And while movie studios have attempted to limit the damage to DVD purchases, Redbox is protected by the first user doctrine of copyright law. (New Tee Vee)

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