- Lawmakers in California rejected a bill to tax internet download sales by only one vote, motivating supporters to keep the measure alive and go for another attempt as early as next week. California is one of many states considering a tax on digital downloads, which could considerably affect the price of per-track or per-album downloads and in turn impact adoption by already wary music fans.

- The Filter, an online music recommendation engine in which Peter Gabriel is an investor, launched its invite-only beta service. The service is expected to go live to the general public sometime next month.

- Zomba/Jive Records has merged its traditional marketing department with its digital marketing and business development group into one newly minted division-Marketing & Digital Media. Jeff Dodes, formerly senior VP of digital business will helm the new group as senior VP of marketing and digital media.