-- Pali Research has upgraded Warner Music Group as it sees the company well positioned relative to its peers. "While we expect the music industry's declines/troubles to continue for at least the next couple of years with total domestic unit sales (physical and digital, including digital tracks converted to albums at 10:1) down an estimated 8% in 2009 and 6%-7% in 2010, compared to an 8.5% decline in 2008, we believe WMG is in a position to generate over $400 mm of EBITDA and nearly $200 mm of free cash flow (FCF) in each of the next several years." (StreetInsider.com)

-- Forrester's Mark Mulligan on how to combat/accept online piracy: "So doing nothing simply isn't an option, even if most media execs recognize that enforcement in itself will not eliminate digital piracy. Indeed it will never disappear entirely but a realistic aim is to push it to the margins in the same way that shoplifting is in the high street equation. High profile industry led action, coupled with robust legislation and effective partnerships between content owners and telcos are all key ingredients that will help combat the problem effectively." (Mark Mulligan's Forrester blog)

-- Social networking ad spending is expected to fall 3% in 2009, while some analysts see a 15% decline at MySpace for the year. (IP Carrier)

-- Wilco is accepting the leak of its new album by streaming the album from its Web site and encouraging those who have illegally downloaded the album to donate to one of the band's favorite charities. (MediaMemo)

-- Vitaminwater is launching a new flavor, Sync, with a promotion that will give consumers free Amazon.com downloads through MySpace Music. The hope of MySpace Music and record labels is that the freebies will eventually lead to a higher conversion rate after consumers get used to buying items at MySpace. One has to wonder if people can get used to paying at a site at which they are accustomed to getting things for free. That mindset will not change easily, but the lure of free downloads should be a good way to drive traffic and get people used to clicking the buy button for a change. (AdAge.com)

-- Another way Spotify is different: The company uses its blog to mention additions to its catalog, and it posts a link to a Google Doc spreadsheet that lists every track and single pertaining to that post. Here's the list of additions for May 13 that totaled 68,877 tracks. (Spotify blog)

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