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All your Industry news and gossip...
MRA Buys Central Station
The Queensland based MRA Entertainment Group's parent company HomeLeisure has bought Sydney dance label and store Central Station Pty Limited and Central Station Holdings Pty Limited for $11.785 million. This was paid by the issue of 8 million HomeLeisure shares at 50 each to Central Station and the balance in cash. Central Station's owners will get 50% if Central Station's pre-tax profit for the year ended 30 June 2004 exceeds $2.195 million. The sale is effective from 1 July 2003 and Central Station is expected to contribute $1 million to HomeLeisure's pre-tax profit in the final six months to 31 December 2003.
An Industry In Change
What more indication that the music industry is in flux than events of last week? Sony and BMG plan to amalgamate their music divisions in a 50:50 deal, with the resultant Sony BMG (it will not include their publishing and manufacturing divisions) getting 24% of the world market. Warner's two suitors are circling closer above (see item below) and Universal has just swallowed up Dreamworks. As these companies respond to a shrinking music market, digital sales are exploding. Nielsen SoundScan figures show that the sales gap between digital tracks and physical singles is narrowing in the US. From the last week of June, digital tracks sold 7.7 million to physical CDs' 4 million. The Record Industry Association of America's strong arm tactics of suing individual file swappers is working. Research by LA-based NPD Group found that 1.4 million households deleted the digital music files they saved on their PCs in August. Number of households acquiring digital music by P2P file sharing devices declined by 11% that month. Sony Corporation announced it is to launch a digital download site. So too did giant music retailer Wal-Mart, responsible for 14% of global music sales.
Warner Sale Talks Continue
EMI has raised enough money from various banks for a US $1.6-$1.7 billion cash-and-stock bid for Warner Music Group's recorded-music companies. Warner's parent Time Warner continues to negotiate with an investment group including Edgar Bronfman Jr, Haim Saban and private equity firm Thomas H Lee Partners. The group wants publishing arm Warner/Chappell and Warner recorded-music unit.
AMDI Showcase Results
The second AMDI (the ARIA/radio industry's initiative to break new acts) showcase held at Home club in Sydney before 400 radio, record label, managers and artists is paying off. Little Birdy has been picked up by nine stations, Thirsty Merc by seven (including Triple J, Nova 937 and FBi Radio). Jet O'Rourke were used by Triple M Adelaide to launch their new format and continue to get played on WA FM. Others who played were Nessa Morgan, Idle Vice and Casanovas.
Parkhill Joins Mana
Mana Music has appointed Norman Parkhill as Sydney-based Music Supervisor Film & TV. He will work with Melbourne-based Julie Hodges to further develop Mana's music supervision services to the film and televisionindustries. Managing Director Chris Gough said Parkhill will also help develop Mana's roster of composers. In his 15 years in the industry, Parkhill has been artist manager (Badloves, Leonardo's Bride), creative/A&R manager (Mushroom Music Publishing), A&R director (Liberation Music). He is contacted on 02 9518 9422 or norman@syd.mana.com.au
Sanity Ties With Destra
Australia's largest music retailer, Sanity Entertainment, inked with Melbourne-based digital rights management provider Destra Corporation to provide paid downloads before Christmas. They will relaunch the retailer's website Sanity.com with 100,000 tracks from all the major labels, at $A1.99 per track, with cross-promotion through Sanity's 260 stores. 'The Australian' reckons EMI and Sony are close to signing the deal, although some label executives expressed surprise to this column the site would launch by Christmas as negotiations with their own companies were not that advanced.
More Delegates For Fuse
More delegates added to the Fuse Festival: Triple J presenters Sharif Galal and Robbie Buck, David Shrimpton (A&R manager, Universal Music), Harbour Agency agent Dorry Kartabani. Michelle Owens (dj Luna/Eyelash Records), Livid promoter and booker Darren Hawthorne, Clive Hodson (Head of ABC Music, ABC Music) and Craig Hawker (A&R Manager, EMI Music Australia).
ICP Fan Suicides
A music store in Wyoming has pulled records and merchandising of rap metal band Insane Clown Posse following the suicide of a local teenager. The boy was a Juggalo, the name given to the ICP's male fans. His parents don't blame ICP lyrics about murder, violence and suicide but add, "They certainly didn't help."
Who Drives Triple J?
Triple J is bringing a new team to its Drivetime slot. Chris Taylor and Craig Reucassel from TV show CNNNN are still trying to think of a decent name. Suggestions like FMMMM, Howard FM and Nova Unplanned have gone down like a cup of cold sick with J bosses. Charlie Pickering will return to Melbourne and stand up comedy, and Mel Brampton will host another music show on J.
"Idol" Hands
As the 'Australian Idol' moves to its finale on 19 Nov, Shannon Noll leads with punters. Centrebet say he's $4 on to win, while Guy Sebastian has dropped to $1.20 after revealing he has the flu. The winner goes to London to compete in 'World Idol' against grinners from 20 other countries. The Oz version's judge, Ian Dickson, will also be a judge for that, press reports say. The 'Idol' people in the UK maintain the show is a boost for the music biz. That's rubbish. These shows make a fortune for TV. The acts are then cast to the music industry, which, as has been proven, has no longterm interest in these poor saps. BMG Oz must be worried with CD sales so far. Although the show now brings in 2.2 million viewers, the Rise single got pushed off No. 1 this week by Kylie, and the Finalists album can't edge past Delta or Farnesie, still enjoying their post-ARIA spurt.
Lifelines
Born: daughter to Universal Music Australia managing director George Ash and wife Rachael.
Expecting: twins, Dixie Chicks' Martie Macguire and teacher husband Gareth, in April.
Married: Papa Roach drummer David Louis Buckner and model Mia Tyler.
Released: British born rapper Slick Rick after 17 months incarceration by US immigration officials.
Ill: Britney Spears bowed out of the MTV Europe awards from bad flu.
Suing: Hip hop band Arrested Development takes action against Fox channel for their new show 'Arrested Development'.
Died: Bobby Hatfield, of '60s pop duo Righteous Brothers, 63, cause unknown. His body was found 30 minutes before a show in the US.
BMG & Vodafone
BMG Australia and mobile communications company Vodafone live! have joined forces to deliver music videos straight to mobile handset for the first time in Australia. Vodafone's 2.59 million Australian customers can through RealNetworks, download for free a 30-second sample of Christina Aguilera's new video The Voice Within at normal GPRS rates at 2 cents per kilobyte. BMG Australia Ed St John said, "By utilising the latest in mobile technology we are demonstrating our commitment towards delivering the latest music clips to music fans in Australia."
Holly's Daze
Holly Valance may have been ordered by the NSW Supreme Court to pay $350,000 compensation to her ex-manager Scott Michaelson, but she might have to pay out up to $800,000 to $900,000 as she's also been stuck with court costs. The bulk of the compensation was $302, 785 as 20% commission for four months' of agreements the singer signed in London between February and May 2003, $10,000 from income from three songs she recorded during the term of the contract, $4,000 for loss of opportunity, and $47,000 as 20% of the fee Valance received for appearing in a commercial for British discount phone company 0800 Revenue. Justice Clifford Einstein deducted $30,000 from Michaelson from his savings for not having to relocate to London if he'd remained her manager. Michaelson had wanted $750,000 compensation (he claimed in court she initially offered him $2,000) and a cut from her second album (which wags on radio and websites have said, will most likely stiff anyway, so why fret!)
Inertia Moves
As part of a restructure, Inertia Distribution has promoted National Sales Manager Connor Grennan to Local Label Manager. Mike Tate, previously Dance Product Manager at Sanity Entertainment and Buyer at HMV (UK) now becomes National Sales Manager.
ABC-TV Investigate 'refugee' Edit
ABC-TV hierarchy will this week take a second look at Sydney electro-funk act Deepchild's video for the song What's Going Wrong. The clip ends with the message "Dedicated to Muhammed Idress Gil and other refugees who have suffered under Australia's unjust refugee policy. No one is illegal. End mandatory detention." Deepchild founder Rick Bull was friends with Gil, who was held in detention for three years before being deported back to Pakistan. Bull was informed by letter from 'Rage' that they would only air it if the message was edited. A storm of protest has erupted, with the ABC saying there was a difference between political comment in art and straight out political statement.
Sony's Tropfest Naming Rights
Sony Australia has bought the naming rights to short film festival Tropest in its 21st year. Now known as Sony Tropfest, all the Sony divisions will be involved in the festival. These include Sony Australia (electronics and broadcast divisions), Sony Computer Entertainment (PlayStation), Sony Ericsson, Sony Music Entertainment and Columbia Tristar Film and Home Entertainment.
Creditors Back Jacobsen
Australian promoter Jacobsen Entertainment Ltd's creditors are supporting the 40-year old company as it trades its way out of a $8 million debt through voluntary administration. Executive director Michael Jacobsen told this column that a creditors meeting in Sydney on October 24 agreed to adjourn until November 21 while JEL and its advisors work on a restructure. Company founder Kevin Jacobsen returned from a US visit during which he met artists, managers and agents, and found strong support. As a result, JEL has some acts confirmed to tour for next year. It is taking 'Fame' to South Africa after successful runs through Australia and Southeast Asia, while Engelbert Humperdinck is touring Australia through November.
Metro City In Court
A legal battle has begun in the Supreme Court over Perth's Metro City, the multi-level 1100-capacity club which hosts rock bands and dance parties. 'The West Australian' reports that financier Orix Australia has put receiver Kim Wallman in charge of the club, claiming it is owed $2 million by the Metro's operators, D Club Pty Ltd. D Club went to the Supreme Court asking it to grant an interim injunction to stop a receiver being appointed. Wallman has apparently given them time to find new funding from elsewhere to pay Orix Australia off.
Petrol Signs With Newslink
Fast growing innovative Sydney-based world music label Petrol Records has announced an exclusive deal with Newslink, part of an international news and book retail chain. Newslink stores will carry the entire Petrol Records range in all domestic, International airports and in railway outlets throughout Australia.
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