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

-- How many file sharers are there in the U.K. and where does that number come from? Ars Technica explains the investigation by a BBC Radio 4 show into numbers used by the recording industry. A government report cited the number seven million from a government-commissioned report by CIBER research group at University College London, which in turn cited the number from a Forrest report. That figure (6.7 actually) was the product of two figures that come with serious baggage: the number of Internet users multiplied by the percent who illegally share files. Opinions on those figures vary. Summarized Nate Anderson, "The differences in all these numbers are tremendous. If the lower numbers are used instead (33.9 million and 11.6 percent), it turns out that only 3.93 million UK residents are dirty pirates - a mere 60 percent of the original 6.7 million number." (Ars Technica)

-- The top 15 labels at eMusic - taken directly from the site - are listed by David at Digital Audio Insider and the post notes that the top 15 has eight Sony-owned labels while the top five are all Sony. This is happening while Sony has failed to crack the top 15 titles (as of Tuesday evening, the top Sony title is Kenny Chesney's Greatest Hits II, at No. 18). It's not a surprise. Sony has all sorts of titles that appeal to indie-centric eMusic subscribers, and eMusic has heavily pushed Sony in advertising and editorial. (Digital Audio Insider)

-- Wired talked to music streaming service Slacker, which has abruptly changed its strategy in light of "very rapid adoption" of smartphones. Slacker's first attempt at the music market was a personalized music streaming service tied to its own portable music player. Now, Slacker is putting its service on as many phones as possible. The Blackberry market is especially strong for Slacker. "Our Verizon Blackberry listeners just dominate our iPhone traffic" said VP of marketing Jonathan Sasse. He added that Slacker sees Pandora as its main competition and predicted Spotify may not succeed in the mobile world due to the costs associated with licensing on-demand content for mobile. That's a very good point. Spotify's mobile apps are for paying customers only. Because they provide personalized yet non-interactive streaming, Slacker and Pandora have the advantage of lower licensing costs. Those lower costs mean their mobile apps can be given away for free, thus expanding their user base far beyond what could be attained through a paid app (or a free app for paying customers).(Epicenter)

-- What percent of Spotify users will upgrade to its premium version? It's an important question with no answer yet. New Media Age surveyed its readers and found that one third of them would pay for the service in order to use its iPhone app. NMA implied that's a low figure, but Spotify would do cartwheels if one-third of hundreds of millions of subscribers ended up paying about $15 per month. One third of five million users (which should be easily attainable in the U.S.) who pay $15 per month equals $297 million dollars in annual subscription revenue. Of course, not everybody who installs the desktop app will have a smartphone and thus be induced to upgrade to premium. But a 33% conversion rate would mean big success for Spotify. (New Media Age)

- A video review of the new Spotify iPhone app. (Recombu at YouTube)

- More YouTube...the David Guetta iPhone app. Very cool. (David Guetta at YouTube)

-- Zac Brown Band has an exclusive version (with three live songs) of its album "The Foundation" in Cracker Barrel stores. In addition, later this fall the 590-strong restaurant chain will sell "Southern Grub Rub," a rub and sauce that is Zac's own recipe, and a cookbook of more of his recipes. (Press release)

-- Creative Loafing talks to Perez Hilton about his record label venture with Warner Music Group and his Perez Hilton Presents tours, among other topics. Hilton on what defines with acts he works with: "It's all up tempo stuff and that's important because you want people to be into it. The worst thing would be to have straight-up singer-songwriter types on the tour opening for Ladyhawke or Ida Maria and have people talking through their sets." (Creative Loafing Atlanta)

-- Matt at Digital Noise asks the question of the day: Could an iTunes subscription service save the record business? It's food for thought, but a few hot, ad-supported newcomers aren't going to make Apple change its strategy just yet. (Digital Noise)

Follow Billboard senior analyst Glenn Peoples on Twitter at twitter.com/billboardglenn.

Questions? Comments? Let us know: @billboardbiz

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