DIGITAL MUSIC NEWS RELEASES RECORD LABEL & MOBILE MUSIC SECTOR REPORTS

MOBILE MUSIC SECTOR REPORT SUMARY – "Two research reports released in June pointed to a growing US mobile music market, with ringtones now a $300 million business. The sector overall will get a boost from several new entrants, though a carrier is yet to jump on board with the iTunes-enabled phone from Motorola. But others are planning big moves, including Verizon Wireless, which will now deliver a music service within 6-8 months. Meanwhile, Napster reached across the pond to ink a major relationship with Ericsson, while Sirius unveiled a deal with Sprint. Despite the developments in the US, Asia remained the market leader."

Japanese mobile operator KDDI revealed 10 million full-song, over-the-air downloads, while Korean SK Telecom inked a partnership with Earthlink to take a chunk of the US market. Meanwhile, MTV announced plans to rollout a mobile-based music and entertainment service in Japan."

"Activity in Europe was also intense in June, with a handful of players inking content deals, including Melodeo, Warner Music, France Telecom, and EMI. Other players like O2 made big moves, with the wireless company launching a new mobile music service. UK-based Shazam also continued to be active, with the company announcing its 10 millionth song recognition."

RECORD LABEL SECTOR REPORT SUMMARY – "Independent labels showed their collective might in June, with over 125 joining together to create the American Association of Independent Music, or A2IM. The group will begin to play a key role in negotiations with digital music stores."

"EMI saw some interesting developments last month, with a new Coldplay album finally hitting the streets. The label also unveiled a new CD-protection program. Meanwhile, Sony BMG chief Andy Lack  outlined a new vision for his label, with video playing a key role in a new "broadly defined entertainment company". Elsewhere, Warner Music continued to face downward pressure from analysts amidst heavy debt. Warner also received a download royalty challenge from artist Tom Waits, who initiated a lawsuit to upwardly revise his digital percentages based on older contracts. And the ghost of Napster I lingered, with EMI and Universal continuing to seek damages from Bertelsmann."

"The RIAA celebrated a big victory in MGM v. Grokster, while also continuing its suits against individual file uploaders. And the IFPI reported strong global levels of CD piracy, though the group noted that the number of illegal discs has hit a five year low. Meanwhile, CD sales in the US bounced around a bit in June, though first-half totals compare quite unfavorably to similar levels from last year."

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