Warner Music
Latest
Record labels sue Charter over copyright infringement claims
Charter Communications has been sued by a group of major record labels who claim it has failed to address "flagrant and serial" music copyright infringement.
Google officially lands deal with Warner Music Group
Make no mistake -- landing a deal for streaming with Warner Music Group is no easy chore. Search for 'Red Hot Chili Peppers' on programs like MOG, and you'll probably be sorely disappointed in what results are returned. Tucked within Google's Nexus blowout this morning was this nugget: the search giant has finally nailed down a deal with Warner, who will be "adding its full music catalog with new songs coming each day." In other words, this completes the puzzle necessary for Google to confess that it's "working with all of the major record labels globally," with this particular deal paving the way for acts like Green Day, Madonna, Neil Young and RHCP to appear soon in the Play Store. Specifics on which artists are coming when remain elusive, but feel free to refresh like mad if you're so inclined.
Warner Music Group says streaming services now account for 25 percent of digital revenue
We've been seeing plenty of evidence that streaming music services like Spotify, Pandora and Rdio are pulling in more folks than ever, and we now also have a good idea of how that growth is affecting the bottom lines of music labels. In its third quarter earnings report, Warner Music Group revealed that streaming services now account for a full 25 percent of the digital revenue for its recorded music group. As AllThingsD reports, that translates to 8 percent of Warner Music's total revenue for the quarter, or about $54 million in all. What's more, that growth in streaming appears to be a net plus for the company all around, as it's apparently not cutting into traditional sales of digital music (at least, not yet), and is also bigger than the decrease in sales of physical media.
Amazon rumored clinching major labels for cloud music rights, iTunes Match feels the heat
When we last checked in, Amazon was thought to finally be pushing for full music rights in its Cloud Drive and Cloud Player services. It might be a smooth operator at the negotiating table: subsequent tips to CNET maintain that the top four major labels (a currently-independent EMI as well as Sony, Universal and Warner) have all signed deals that will let Amazon offer the same scan-and-match music downloads and streaming as Apple's iTunes Match. The pacts would let Amazon offer access to every song a listener owns without having to directly upload each track that wasn't bought directly from Amazon MP3. Aside from closing a conspicuous gap, the deal could end a whole lot of acrimony from labels who were upset that Amazon preferred a free-but-limited service over having to charge anything. The online shop hasn't said anything official yet (if at all), but any signatures on the dotted line will leave Google Music as the odd man out.
Warner Music reporting more stable sales, propped up by iTunes and streaming services
There's finally some good news in the music business, but don't get too excited, it's not that good. Warner Music reports (before we hear about the full industry sales from 2011) that its sales were steady last year, at $780 million. In this case, steady is better than a drop, which is what most of the music industry has seen lately. Warner says that digital revenue makes up 28% of the company's sales, a number that's jumped up 17% in the last year. iTunes and other downloadable services accounted for $205 million in Warner's revenue in the last quarter. Streaming services are becoming more lucrative as well. While Spotify and other streaming services have only brought in $15 million so far, that share of the market is growing by 36%, much higher than downloadable music's 15% growth. In other words, streaming revenue isn't a huge deal yet -- but it might be very soon if trends continue. Plus, analysts are saying that streaming revenue (which comes from customers who pay a monthly fee for an all-you-can-listen-to music service) often comes from those Napster users who didn't pay at all before, which means that it's brand new revenue for the music companies. Not as much revenue, obviously, as if those customers actually bought every CD they listened to, but a music industry that's been flagging for the better part of a decade will probably take what it can get.
China's Baidu licenses music from major US record labels for streaming and downloads
In a move suggesting they might be ready to accept the realities of the internet era, major US record labels have reached a deal with Chinese search engine company Baidu. The agreement between the search giant and One-Stop China, a joint venture of Universal, Warner and Sony BMG, will result in licensed tracks popping up in searches instead of pirated ones and resolve years of legal wrangling between the two sides. Baidu launched its ting! social music service earlier this year with support from local labels and EMI, while this new deal will see labels paid per-play, per-download and from advertising. Between this and the recent launch of Spotify in the US the cheap and easy fun of music piracy is slipping away rapidly, if record labels continue to act sensibly then illegal downloads will soon be limited to hipsters ironically cracking open vintage editions of Soulseek.
Apple signs Warner Music to its cloud-based music service
Need another sign that iTunes will soon be floating your library up to the cloud? Look no further than confirmation of Apple signing Warner Music, a deal that should see the label's music available in its upcoming streaming iTunes service. This is in addition to last week's confirmation that two major labels signed on, though its unclear whether Warner is part of the pair or is, indeed, a third. That might leave only one of the major labels left unsigned -- or maybe Apple's already locked down all four but doesn't want to kiss and tell. Yet.
Apple working on unlimited downloads of purchased iTunes music, setting MobileMe free?
You know all that rumor and speculation about Apple launching a subscription-based streaming music service? Forget it -- at least until the next rumor comes along. Bloomberg is citing three people with knowledge of private talks between Apple, Universal Music, Sony Music, and Warner Music to make purchased music more easily accessible to iTunes users. Two sources claim that an agreement could be announced by midyear. Contrary to popular speculation aroused by Apple's purchase of Lala, they're not talking about streaming music from Apple's new North Carolina data center scheduled to come online in the spring. According to Bloomberg's sources, Apple is instead, planning to offer unlimited downloads to any device linked to the same iTunes account. So, purchase a track on your iPhone and download it again for free to your iPad without having to go back and tether the mobile device to your PC or Mac for a sync. Hard disk crash? No worries, there's a permanent backup in the cloud. Of course, there's nothing preventing Apple from providing unlimited downloads in parallel with a streaming service except for the labels and artists who prefer the higher revenues paid out by download services. Then again, if it was left to them we'd still be buying our music on $15 CDs. Incidentally, one Bloomberg source was also caught blabbing about Apple's plans to overhaul the MobileMe service to store pictures, video, and other online content sometime this year. Better yet, it could drop from $99 per year to free -- something already reported by the Wall Street Journal a few weeks ago.
Warner Music talks trash about free streaming services, keeps using them
Warner Music Group CEO Edgar Bronfman Jr. isn't happy with free music streaming services. Shocking, right? Coming out yesterday with a barrage of disparagement for online streamers like Spotify and Last.fm, Bronfman Jr. made it clear that they do not represent "the kind of approach to business that we will be supporting in the future." Why is that, Eddie? The man in charge seems to think that paid subscription models are the future, because "the number of potential subscribers dwarfs the number of people who are actually purchasing music" online. That's wonderful and all, but he neglects to tell us the specifics of how and why Warner will succeed at something that every publisher would love to have, but none have managed to translate into reality yet. Additionally, WMG is not withdrawing its music library for the moment -- something a lot of publications seem to have erroneously reported (see Spotify tweet below) -- which leads us to believe the entire spiel is more of a renegotiating ploy than a concrete statement of intent. [Thanks, Wiggy Fuzz]
Warner CEO: iTunes price increase led to lower sales, recession might also factor in
Don't pat yourself on the back too much for calling this one, but Warner CEO Edgar Bronfman Jr. has now confirmed what many have suspected: higher iTunes pricing has led to slightly slower sales. Specifically, he says that while the variable pricing introduced early last year has been a "net positive" for the company, revenue growth on iTunes slowed to just eight percent in the last quarter, compared to a hefty 20 percent a year earlier. He is also quick to point out, however, that raising prices 30 percent during a recession may not have been the best idea in hindsight. Interestingly, Bronfman seems to think that e-books actually stand a better chance at holding to up to price increases than music, noting that the "book publishing industry, on the iPad, has much more flexibility than the music industry had."
iTunes LP broken for indie record labels?
Update: ElectricPig is reporting on 10/13 that an Apple spokesperson said the LP format will be opened up for all, indies and majors alike. There's word from an indie record-label that iTunes LPs are not for the indies. Introduced at Apple's "It's Only Rock and Roll" event in September, the iTunes LP format adds "bigger than a matchbook" album art, song lyrics, video clips, and other extra content to albums sold through the iTunes store. digg_url = 'http://digg.com/apple/iTunes_LP_broken_for_indie_record_labels'; Brian McKinney of Chicago-based label Chocolate Lab Records saw some promise in the new format and started looking into the idea of producing for iTunes LPs himself. But the truly small labels may have a hard time getting in. McKinney spoke to the digital distribution manager at his label's distributor, who reportedly told him that Apple charges a $10,000 production fee for iTunes LPs. $10,000 may be less than the heads of Warner Music Group, Sony BMG, Universal Music Group, and EMI spend on breakfast, but could be cost prohibitive for the little label that could (if it had $10,000 handy for each of its acts). It's not just the cost that prohibits the little labels. According to McKinney, it's also Apple. McKinney says his dude in distribution was told "that LPs aren't being offered to indies and that there are only about 12 LPs being offered right now." "Foul, foul, filth and foul," cries Cult of Mac's Pete Mortensen. Like a financial analyst moving a stock from "buy" to "sell," Mortensen says iTunes LP has gone from "the first digital album good enough to criticize," to "the first major content misstep in the history of the iTunes Store." Assuming that Chocolate Lab's distributor info is on the up-and-up, Mortensen thinks iTunes LP is "less a new format for music than it is a new form of paid advertising on the iTunes store."
Activision Blizzard CEO questions rhythm game royalties yet again
Last week, Activision Blizzard CEO Bobby Kotick criticized complaints made by Warner Music exec Edgar Bronfman, who claimed the royalty rates for songs used in rhythm games such as Guitar Hero are "paltry." Kotick responded hastily, saying Bronfman's comment was "one-sided". Apparently unsatisfied with his single verbal riposte, Kotick brought the matter up yet again in a recent interview with the Wall Street Journal, in which he ponders whether music publishers who contribute to rhythm games should be paid at all -- even more, Kotick contemplates whether the music companies should be the ones to shell out the cash.Kotick claims that rhythm games with licensed tracks have a "significant" impact on the record and ticket sales of contributing artists, causing him to wonder if developers "should be paying any money at all and whether it should be the reverse." He makes a somewhat valid point, though we humbly abstain from picking sides in this royalty rumble -- we'll leave that to you, our well-informed and judicious readers.
Panic! At the XBL: Warner Music Group videos hitting Live Marketplace
"Panic! At the Disco" would actually make a neat title for an indie developed XBLA game, but, as our lengthy research has concluded, is already taken by a popular musical act. The band and several more will see their music videos on the Xbox Live Marketplace thanks to a newly announced deal between Microsoft and the Warner Music Group.Videos from Death Cab for Cutie, Cute is What We Aim For, Flo Rida, Matchbox Twenty, Panic! At the Disco, T.I., and other WMG-signed artists will begin appearing on the XBLM Video Store starting Monday. MS and WMG promise that this is just the beginning of a long assault on our eyes, ears, and wallets to come.
Actilizzard CEO finds Warner Music's logic on music licensing 'one-sided'
Activision Blizzard CEO Bobby Kotick finds comments made by Warner Music -- saying it should be paid more for the use of its music in games like Guitar Hero -- a little "one-sided." The Financial Times reports that the Blizzavision chief thinks comments made by Warner Music's Edgar Bronfman don't take into account the "capital and resources" required to turn the song into something "fun to play."With the music industry taking a backseat to the games industry, it's not surprising to find record execs trying to figure out a way to squeeze more money out of a billion-dollar franchise. The thing is, though, that Activision's merger with Vivendi Games, connects it to Vivendi Universal, which owns Universal Music, the "world's largest music publisher." At the end of the day, Kotick can snap his fingers and never talk to Warner Music again, all the while squeezing every last dollar out of the Guitar Hero franchise until it stops being the soup du jour.
Warner Music wants more money for licensed songs
Developers vying for a slice of the rhythm game pie may soon find the cost to dig in to be increasing -- at least if they want players to nod along with music they know. According to Reuters, Warner Music's top exec Edgar Bronfman has come forward, stating that game companies should pay more to the music industry in order to include licensed tunes in their music-based games.Says Bronfman, who compared the relationship to the likes of MTV or Apple's iPod, "The amount being paid to the music industry, even though their games are entirely dependent on the content we own and control, is far too small." Given Warner's interest in music currently flowing through both Guitar Hero III and Rock Band, not to mention the war that is about to unfold on living room stages later this year, it will be interesting to see who will 5-star this game of financial tug-of-war.
Warner Music wants more from Rock Band, Guitar Hero
Warner Music has said that companies like Harmonix and Activision will need to shell out more cash to license songs for games like Guitar Hero and Rock Band. Warner Music leading man Edgar Brofman told Reuters that considering each company's game is completely dependent on the content the music industry owns and controls, "The amount being paid to the music industry ... is far too small." Brofman compared the significance of rhythm music games to the industry shifting introductions of MTV and iTunes. Even though it has been reported that royalties for content sales in music games are much higher than other services, such as iTunes, we're surprised it took this long for the industry to start sobbing about getting paid. If licenses change, could this spell an increase in downloadable content prices? [via CVG]
Warner Music joins Nokia's Comes With Music download program
The latest label following BMG to join Nokia's Comes With Music service bandwagon is none other than Warner Music Group. The third-largest label joins the powerful cadre of labels on the service, which as of this posting lacks only EMI for a full major label lineup. As a reminder, the service allows you to download music for 12 months and then keep it as long as you own the device or transfer to a PC. Now, of course, we just need to wait for the devices to roll out. [Via Yahoo News]
Amazon starts dishing out DRM-free Warner Music MP3s
We're not sure if Amazon's forthcoming DRM-less Super Bowl promotion has anything to do with it or not, but the company has just announced that its finally brought Warner Music Group into its MP3 fold, with a slew of music from the label now available for download without any of those pesky restrictions. According to Dow Jones, the pair also plan to offer other "digital music products," including album bundles with exclusive tracks, although details are few and far between beyond that. Still no word from Sony BMG on its intentions to go DRM-free (with Amazon or anyone else), but it sure looks like things are increasingly stacking up against them.
Nokia Music Store launches without Warner Music due to file sharing fears
Notice anything missing from the Nokia Music Store launched yesterday? How about Madonna? According to the Wall Street Journal, Warner Music Group -- yeah, that guy -- is withholding their goods due to concerns with copyright abuse at Nokia. No, not with Nokia's Music Store but with their seemingly unrelated MOSH (MObile SHaring) file-sharing service. The other three majors -- Universal, Sony BMG, and EMI -- are all playing nice, however. A Nokia spokesman confirmed the absence stating, "we are hopeful that Warner will be part of Nokia Music Store in the future." Who knew that Madonna could be used like a big stick?
Case dismissed for AllofMP3 founder Kvasov
It looks like AllofMP3 founder Denis Kvasov will be evading any time in the gulag, at least for the moment. If you'll recall, EMI, Universal, and Warner Music filed suits against the highly dubious MP3-portal's founder after launching a whirlwind attack resulting in Mastercard and Visa pulling their services for the Russian-based site, and the eventual collapse of the pretty-much-illegal download service. The suit sought damages from the "entrepreneur" to the tune of 15 million rubles (about $590,700 US), but according to reports, a Cheryomushky District Court judge threw out the case against Kvasov, stating that a legal loophole allowing AllofMP3's particular kind of online music distribution continued through 2006 -- one year after Kvasov left the company. Of course, two more cases are pending against the mogul, so it seems likely we'll be hearing a lot more on this in the coming days and weeks.
