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

-- Former eMusic president David Pakman, now a partner at venture capital firm Venrock, explains why iLike sold for "peanuts." Short version: Traction was not mistaken for value. Pakman explained that VCs look for traction, which means users, as well as value, which means a viable revenue model can be built upon those users. He believes the "distressed exit" of iLike is evidence that "we have returned to a time where eyeballs don't necessarily equate to value, and rightfully so." Given the rumored price of iLike versus many overvalued exits in previous years, Pakman makes a good argument. It portends a problem for music startups present and future: Your customers may not be as valuable as you through they were. (Silicon Alley Insider)

-- A comScore/dunnhumbyUSA study found that Internet advertisements for consumer packaged goods were just as effective as television advertisements. "Over the course of a three-month period, comScore observed that these types of ad campaigns were able to lift sales of the advertised brands in retail supermarkets by an average of 9%. Approximately 80% of the online ad campaigns analyzed resulted in statistically significant sales increases for the advertised brands." (Media Buyer Planner)

-- How has iLike's music recommendations changed over the years? It's a good question to ask as there is chatter about an acquisition of the music-based social networking site by MySpace. Here's the blurb that summarizes the findings: "It looks like today's iLike music recommendations are not much better than they were back in October of 2005. A good fraction of the recommended artists are clunkers that don't match the seed artist - sometimes feeling like anti-recommendations. ...They also like to sprinkle in their own Garageband artists which seems to me more like an artist promotion rather than an honest recommendation." (Music Machinery)

-- Qtrax CEO Allan Klepfisz has posted a lengthy explanation of the service's October 29 launch date in nine Asian-Pacific countries (including China) and reaction to recent articles about Qtrax at CNET that he characterized as "some sort of crusade" against the company. If there is any one takeaway, it is this declaration of differentiation that does not mention the most important thing, the actual product: "[W]e have made ourselves, with years of work, hugely different. And not only because of having the only global free & legal download licenses. We have worked really hard on a series of pivotal differences. In costs & revenue. Rendering us almost diametrically opposed." (Qtrax Music Experience)

-- The Georgia Theater in Atlanta, damaged by a fire in June, is being rebuilt. The theater has formed an alliance with the University of Georgia's business program and benefit shows are being planned. (Access Atlanta)

-- Porter's Five Forces and the value of distribution to an independent artist. "Has the digital age liberalized distribution? Obviously. Distribution channels approach infinity. But so does the related 'noise' of these distribution channels. For many of us, who like to create but don't want to become marketing and distribution experts, a distributor has an appeal, even if it involves a transfer of some rights and a forfeiture of some potential income." (Copyright Alliance)

-- In Fast Company's profile of Nokia's entertainment ambitions, this quote of Tero Ojanperä, executive VP of entertainment and communities, really stands out considering his competition: "We want to make a difference in the payment for music. Nokia not only wants to revolutionize music, but I am claiming now that we will quickly be the world's biggest entertainment media network." (Fast Company)

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