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

-- The Orchard's Q2 2009 earnings had two things common in the digital world: a deeper loss and higher revenue. As the company's scale improves and it adds higher-margin products and services it should be in a better position to turn a profit. But not yet. The digital services company had a net loss of $1.1 million on revenues of $15.1 million. In Q2 2008 the company reported a net loss of $785,000 on revenue of $13.4 million. Revenue increased 13%. The number of paid downloads from The Orchard's catalog rose 29%. The Orchard's catalog also increased 29%. Gross margin increase a percentage point to 27%. Operating expenses rose 16% in part because of the addition of TVT's physical distribution division. Net cash provided by both operating activities was basically flat. (SEC filing)

-- Specs on the upcoming Zune HD: up to 33 hours of life playing music or 8.5 for video with no wireless; can hold up to 22 hours (16GB) or 48 hours (32GB) of video optimized for the device; dimensions of 52.7 mm x 102.1 mm x 8.9 mm; weight of 2.6 oz; and incredibly high video resolution capabilities. (Engadget)

-- The Wall Street Journal has video streams of sections of Walt Mossberg's Q&A with Moby from Monday's Summer Scoops Live session. The conversation goes from his creative process to major labels and why he stopped licensing his music. And his take on his own intellectual property is interesting (he personally doesn't mind if people take his music, but for the sake of his record label he hopes they pay for it). But one question: Has promoting records really become less expensive, Moby? Recording, that's cheaper. Promotion, not including free tools like MySpace and Facebook (often managed for free by interns or cheaply by entry level employees), is just as costly and challenging as ever. If the cost of promotion has dropped, it's only because falling sales has lowered what can be spent. (Speakeasy)

-- Live Nation has refurbished the 6,500-seat Bayfront Park Amphitheater in Miami and will re-open the venue next week. Changes include expanded concessions, new bathrooms and wooden benches replaced by seats. (

-- The Department of Justice submitted a brief in defense of the constitutionality of the $1.92 million award in the Thomas-Rasset file-sharing case. "In enacting the current statutory damages provisions of the Copyright Act, Congress has given such regard to the public's interests, the opportunity to repeatedly commit this statutory
violation, and the need to ensure adherence to the law. The current damages range provides compensation for copyright owners because, inter alia, there exist situations in which actual damages are hard to quantify. Furthermore, in establishing that range, Congress took into account the need to deter millions of users of new media from infringing copyrights in an environment where many violators believe they will go unnoticed." (Scribd, via Copyrights & Campaigns)

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