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

-- According to, Doug Morris, CEO of Universal Music Group, is "quietly making plans to bring in a successor" - Lucian Grainge, chairman and chief executive of Universal Music Group International. Morris signed a four-year contract extension last year and is expected to remain on as chairman. (

-- Dimensional Associates is said to be in negotiations with digital distributor The Orchard to acquire the common stock it does not already own. According to the SEC filing, Dimentional would pay $1.84 per share and the deal would like result in changes to The Orchard’s present board of directors and the delisting of the stock from national exchanges. In a separate SEC filing, The Orchard announced that interim CEO Danny Stein had resigned and was replaced by Brad Navin, executive VP and GM. Dimensional Associates is the operating company of private equity firm JDS Capital, which owns eMusic. (SEC filing, via paidContent)

-- The Rhapsody iPhone app is getting some blame for not preventing Rhapsody’s Q3 drop in subscribers. Keep in mind, though, the app went live at iTunes around September 8 and the end of the quarter was September 30. So there wasn’t going to be a huge impact one way or another. Three weeks just isn’t enough time. Also, only subscribers to Rhapsody can use the iPhone app. If the iPhone app is going to be a selling point to gain subscribers, it may help if the free version of Rhapsody is also client-based. That way potential subscribers know what is in store when they upgrade. Users of the free, ad-supported version of Spotify, for example, know exactly what is in store if they upgrade to the paid version: other than the lack of ads, it’s the same product. Different freemium strokes for different folks. (GigaOm and PC World)

-- McAfee, the computer security company, says the number of sites hosting unauthorized content rose 300% in the three months after The Pirate Bay was shut down. “The Pirate Bay example shows how difficult it is to ‘stop’ data once it is on the web,” the McAfee report said. “Although a website can be shut down, anyone who has accessed the content (pictures, games, text, movies, etc) may still have some and be able to redistribute it.” (Times Online)

-- An EMI spokesperson said the company did not give permission to to sell Beatles downloads and is “looking into” the situation. The blogosphere has been abuzz for the last few days about the availability of The Beatles’ catalog at the no-frills download site. But there never really was any question that EMI had not decided to use for the official download debut of its most heralded artist. (The Telegraph)

-- An updated version of attorney Don Passman's “Everything You Need to Know About the Music Business” - which should be on everyone's desk - is out on November 17. “The update before was pretty substantial, but this one was even more so because there have been really radical changes in the business. Apart from the new technologies which are now far more prevalent than they were three years ago, we've got all these 360 deals…Nobody likes it from the artist's point of view, but if you want to deal with a major company--unless you've got King Kong bargaining power--that's going to be part of it.” (Huffington Post)

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