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RETAIL DOOM AND GLOOM PART ONE: ZAVVI The news will have surprised no one really, closely following, as it did, the closure of Woolworths and its music distribution sister company eUK and the collapse of independent music distributor Pinnacle. Declining CD sales, increasing competition from supermarkets and online mail order websites, coupled with the credit crunch and recession mean times are tough in music retail just now. And the Woolies situation, of course, impacted on Zavvi directly because eUK was the retail chain's principle supplier. eUK's liquidation forced Zavvi to close its online operations in the middle of the pre-Christmas rush, and also meant the retailer had to start negotiating credit terms with other distributors and record companies directly. Given rumours Zavvi was eUK's biggest debtor, it was going to be hard to negotiate workable terms with cautious suppliers. Meanwhile, as Woolworths and eUK moved into full on liquidation, its administrators - Deloitte - would presumably start making demands regarding payment of Zavvi's debts. All of this sent Zavvi to and over the brink, just in time for Christmas. Ernst & Young, already called in to advise on the company's financial difficulties, became the company's administrators. They are now going through the motions. It's not yet clear if there is any interest in the Zavvi brand or any of its stores - though the former seems unlikely given it is a relatively new name on the high street, and hardly one that caught the public's imagination. There is no word on if and when Zavvi stores will start to close (some closures had already been scheduled prior to the administration, and those are likely to go ahead) though 69 employees at the retailer's London HQ were made redundant last week. Media attention regarding the Zavvi story quickly turned to the notice the company's administrators issued on Christmas Eve, and in particular the section announcing that Zavvi vouchers would no longer be accepted in store. Coming at Christmas time, when such vouchers were presumably dished out as presents all over the country, this was a good tabloid story. Those holding Zavvi vouchers have been told to send them to the company's administrators with their name and address. Those with vouchers sold after 27 Nov are likely to get a cash payment equal to the vouchers' value because, with the future of the company looking dodgy, at that point Zavvi bosses put any money spent on vouchers in a trust fund. Refunds on vouchers sold before 27 Nov, however, are less assured - owners of them will be added to the longer list of creditors and will have to wait some time to see whether they will see any cash from any sale or liquidation of the company. It's not clear what Zavvi's situation will mean for the Richard Branson's Virgin Group, who maintained some links with the former Virgin Megastore chain after the management buyout which created Zavvi in 2007. In particular, it's believed Virgin guaranteed some of Zavvi's credit accounts, including that with eUK, and that they still hold the leases of some of the retail chain's stores. Virgin Mobile, meanwhile, continued to use some Zavvi stores in order to have a high street presence. If no buyer is found Branson could find himself footing some of Zavvi's debts. That said, it could be a small price to pay. While the youthful Zavvi's credit worthiness may have caused its actual downfall, it is likely the Megastore would have been struggling too had Virgin retained ownership. But Branson may have felt the need to prop the retail enterprise up in a bid to stop one of his most high profile businesses becoming a high profile victim of the recession. The management buyout that created Zavvi definitely did Branson a favour, even if he is left footing some of the bills run up by those managers. -------------------------------------------------- RETAIL DOOM AND GLOOM PART TWO: WOOLIES As the one time biggest seller of music in the UK closed its doors for the final time, former staff from the retailer's stores on the Channel Island of Jersey hit out after they learned they would not received any redundancy pay. Administrators informed former employees that statutory redundancy payouts paid to staff on the mainland were not applicable on Jersey. Staff have petitioned the administrators, but it seems unlikely it will result in any additional payments being made. So much so Jersey politician Geoff Southern has called on the island's government to put aside £140,000 to provide aid to those former Woolies staff facing no work without compensation. Elsewhere in the world of Woolies, the liquidation of the firm's distribution business eUK continues, with news last week that some of its former suppliers, including record company EMI, are preparing legal action in order to get their hands on stock still sitting in the dead company's warehouses. The entertainment firms not only want the return of stock that has not been paid for (as is their automatic right) but also paid-for stock in lieu of debts. The legal action is to stop administrators Deloitte from selling those goods for a quick buck on the basis a return of stock will mean the losses incurred by the entertainment congloms as a result of eUK's collapse will be less. -------------------------------------------------- RETAIL DOOM AND GLOOM PART THREE: ANY SILVER LINING? Needless to say, HMV are remaining upbeat in their public announcements, and have followed up Woolies and Zavvi's very public demise with news of a revamp of two shops in their mini Fopp network. HMV, of course, acquired a handful of the Fopp stores after the indie retailer went under in 2007. This weekend they announced that the Fopp stores in Glasgow and Edinburgh, the indie brand's original home, will be overhauled to introduce instore download facilities plus ticket and gadget sales. HMV's Gennaro Castaldo told reporters: "You'll still find a comprehensive range of music, films and home entertainment. But we'll now introduce social hubs where you can access your favourite music sites or MP3 kiosks to download new songs. Using chip-and-pin technology you can listen to virtually every bit of music that is digitally available. If you like it you can keep it and the cost will vary between 59p and 79p a track. Many young people download at home but we don't want them to be a lost generation. We'd like them to come into our stores and treat them as more of a social space to hang out. We're keen to keep the whole spirit of Fopp alive. We want to keep the indie essence and Scottish roots of the store - but run it independently from HMV". Elsewhere in music retail, and for those that reckon Woolies and Zavvi's demise marks the beginning of the end for the CD and DVD formats, online mail order site Play.com has reported a 24% increase in like-for-like sales this Christmas. Sales of Take That's 'The Circus' CD and the 'Mamma Mia' DVD helped with the boost in the four months leading up to Christmas. As much previously commented, it is the increasing popularity of the often price-cutting mail-order websites like Amazon and Play.com more so than an overall decline in CD sales or rise in digital downloads that has made things so difficult for UK-based high street CD/DVD sellers in recent years. The privately owned Play.com revealed the boost in its sales in a bid to prove that big names in the online retail sector are not suffering from the good old credit crunch in the way their high street rivals are. -------------------------------------------------- DRE JUNIOR DIED OF ACCIDENTAL OVERDOSE -------------------------------------------------- JOHN LENNON TO SPEAK UP FOR LAPTOP CAMPAIGN Thanks to some of that digital technology, Lennon will be seen encouraging people to support the US-based One Laptop Per Child campaign which hopes to raise funds to buy heavy duty, solar powered laptop computers for children in some of the world's poorest countries. An image of Lennon will say: "Imagine every child no matter where in the world they were could access a universe of knowledge. They would have a chance to learn, to dream, to achieve anything they want. I tried to do it through my music, but now you can do it in a very different way. You can give a child a laptop and more than imagine, you can change the world". The One Laptop Per Child Foundation was created at the Massachusetts Institute of Technology and started producing the special XO laptop late last year at a manufacturing cost per machine of less than $200. CLAIMS AGAINST BRONFMAN OVER WARNER PURCHASE DISMISSED Snyder, a former CEO of publisher Simon & Schuster, claimed he co-conceived the purchase of Warner Music off former owners Time Warner with Bronfman, and that there was a gentleman's agreement he would receive a cut of any profits made as a result of the purchase. Bronfman, Snyder alleged, had reneged on that agreement. Four of Snyder's six claims against the Warner boss in his 2007 lawsuit were dismissed back in April last year, but two remained - unjust enrichment and quantum meruit (the latter the argument Synder was at least owed something for his services in planning the acquisition). An appellate court considered those two claims just before Christmas and promptly dismissed them. Bronfman's lawyer, Orin Snyder (no relation to the plaintiff I don't think) told reporters: "This unanimous decision is a complete victory for Mr. Bronfman - so much so that the Court imposed court costs on Dick Snyder. We are gratified that the appellate court vindicated Mr. Bronfman and repudiated Dick Snyder's bogus claims". -------------------------------------------------- P2P LAWYER CALLS FOR COURT CASE TO BE STREAMED Harvard law professor Charles Nesson has been planning the defence for Boston University student Joel Tenenbaum who is being sued by SonyBMG and the RIAA for alleged file sharing. Nesson was recently quoted thus: "Given the keen interest of the diverse parties following this litigation closely, and the potential learning value of this case to a broad audience beyond, this case presents an ideal instance in which judicial discretion should be exercised under the auspices of the rule to admit internet to the courtroom". It could be that Nesson genuinely wants such court cases to be streamed out of academic interest. Or it could be a tactic to persuade the now lawsuit-cautious RIAA to drop its litigation against Tenenbaum. While US copyright law is generally on the RIAA's side when it comes to illegal file sharing, various technicalities have caused some problems when specific cases have gone to court in the past. I don't think the judge overseeing the case has commented on Nesson's proposals. Perhaps he just doesn't care what Nesson thinks - the Harvard prof won't be able to actually defend Tenenbaum in court because he's not licensed in the state where the case will be heard. ANNIE LENNOX BACKS CALL ON ISRAEL TO END GAZA ASSAULT Lennox was one of a number of campaigners and c'lebs present at a press conference in London which called on Israel to stop the military action and return to that much abused negotiating table. Lennox told reporters: "A few days after Christmas I came downstairs, put the television on and saw smoke pyres emanating from buildings and it shook me to the core. I was thinking, as a mother and as a human being, how was this going to be a solution to peace? It's a question of human rights, human values that goes beyond Jewish, Muslim, nothing to do with any of that. There has to be a place ultimately where people come to the table". NO WOMAN, NO CRY WRITER DIES There has been much debate regarding the penning of 'No Woman, No Cry', which first appeared on Marley's 1974 album 'Natty Dread'. Ford, a long time friend of Marley's, is credited alone, though many think Marley actually wrote at least the melody. They argue the reggae legend let his friend, already disabled by diabetes, have the full credit so to give him a guaranteed income. Ford is also credited on three songs on Marley's 1976 album 'Rastaman Vibration'. Royalties from the songs not only helped support Ford, but also the soup kitchen he founded and ran in the Trench Town ghetto in Kingston, a facility that still operates today. Ford is survived by two children. -------------------------------------------------- FORMER FOREIGNER MANAGER DIES Prager co-founded his music company Windfall, which would go on to have recording, publishing, management and production divisions, with Cream producer Felix Pappalardi in the sixties. He brought together the seventies rock outfit Mountain, and then the supergroup of sorts West, Bruce And Laing, which combined two members of Mountain with Cream's Jack Bruce. But it was as manager of Foreigner, from 1976 through to the early nineties, that Prager scored the most success. Despite an all round lack of label interest, he managed to secure a deal with Atlantic that would result in millions of record sales. In the late nineties he managed metallers Megadeth, and continued to be involved in the careers of numerous rock acts as boss of ESP Management up until his death. -------------------------------------------------- NEW MODEL ARMY MANAGER DIES Tee began working with New Model Army in 1982, initially as a driver and then as tour manager. He left to manage The Almighty in 1990, signing them to Polydor, before returning to work with NMA in 1996 as their overall manager. An early advocate of the power of the internet for established bands, he helped NMA to self-release new material ensuring them ownership and control over their recordings, publishing rights and merchandise. He was known for his hands-on approach, always helping to load the band's tour van and stuff envelopes despite his primary role as deal maker for a self-releasing band with an increasingly worldwide fanbase. He leaves a wife and three children. Commenting on Tee's sudden death, NMA frontman Justin Sullivan told CMU: "Tommy's death leaves a huge hole in all our lives, not just professionally as the man who organised every aspect of the band's life but most especially as a friend and the best kind of road companion. And this sense of loss increases rather than decreases with each day that passes". UK EUROVISION CONTENDERS CHOSEN The earlier outing for the Eurovision franchise, plus Lloyd Webber's involvement as songwriter in chief, are all part of the UK team's bid to, well, at least not come last this time. Last year, of course, Andy Abraham's performance of 'Even If', penned by Abraham, Paul Wilson and Andy Watkins and chosen by the viewer voted pre-Eurovision TV UK song contest, came last with just 14 points. The hopefuls hoping to sing the UK Eurovision song this year were unveiled on a BBC1 show on Saturday night. For reasons I'm not sure of, the official 'Eurovision Your Country Needs You' website doesn't want us to know the surnames of the contenders, so I can only tell you the solo artists are called Charlotte, Jade, Damien and Mark. The twins go by the name of, well, The Twins, a moniker which worked wonders when former 'Neighbours' twins Gayle & Gillian Blakeney attempted a pop career in the early nineties. The quintet call themselves Emperors Of Soul. A series of programmes will now air on the BBC over the next couple of months so that the winners are chosen in time for Lloyd Webber to work with them on that 'not last place' of a song. -------------------------------------------------- BRITS LAUNCH LINE UP ANNOUNCED Anyway, I digress. Talent vacuum Fearne Cotton will host the BRIT Nominations Party which will take place on 20 Jan at the Roundhouse in Camden, and which will be aired on ITV2 on the same night. Organisers have confirmed the launch show will include live performances from Scouting For Girls, Gabriella Cilmi and Brits Critics Choice winner Florence & The Machine, who, by the way, recently signed to Universal's Island Records. Confirming the line up for the Launch, Brits Committee chair Ged Doherty told CMU: "The Nominations Launch party has firmly established itself as a major night for music in its own right. It's a great platform for Florence And The Machine to show why she has won the Critics Choice Award this year, while the presence of Gabriella Cilmi and Scouting For Girls will ensure a vibrant and exciting night for all. We thank ITV for their continued support". The Brits themselves take place on 18 Feb. ELBOW TOPS HMV'S POLL OF POLLS ON 2008 ALBUMS 1. The Seldom Seen Kid - Elbow Commenting on their survey, HMV Rock & Pop Buyer Damian Evans told reporters: "The poll reflects an excellent, eclectic year in music. Fleet Foxes, Vampire Weekend, MGMT and Bon Iver have really made their mark with wonderful debut albums, underlining how vibrant the music scene is right now. Established artists such as Portishead and Nick Cave have also returned to great acclaim, although I suspect few people would dispute that Elbow have given us the album of the year". -------------------------------------------------- FLEET FOXES NAMED BILLBOARD ALBUM OF 08 The Billboard accolade follows news that the June release has scored UK indie label Bella Union their first gold record after the album shifted over 100,000 units in the UK. Bella Union handled the UK release of the long player, released by Sub Pop in the US, via their partnership with Universal Music's indie label partnership network Co-Op Music. -------------------------------------------------- MAMMA MIA! THE BEST SELLING DVD EVER 'Mamma Mia!' has become the biggest selling UK DVD of all time with 5 million units having been sold since its relatively recent release in November. This means one in four UK households owns a copy. It was far and away the biggest selling DVD of 2008 (next biggest seller 'The Dark Knight' sold 1.5 million units), and has already outsold the previous best selling DVD in Britain, the first 'Pirates Of The Caribbean' movie. Official Chart Company MD Martin Talbot confirmed 'Mamma Mia's bestseller status, and told CMU: "Right from its release, Mamma Mia! has been a record breaker. This latest landmark further underlines the popularity of the movie, which is now officially the British public's favourite DVD of all time". -------------------------------------------------- QUO SCORE MOST UK ARENA DATES IN 2008 But the real hard work surely takes place in the smaller venues. The list of the busiest artists performing in smaller concert halls was also dominated by veteran acts - with Gerry And The Pacemakers, David Essex and Chas & Dave apparently leading the field. -------------------------------------------------- PLANT HAS GREATEST VOICE IN ROCK 1. Robert Plant (Led Zeppelin) PRINCE PLANNING TO RELEASE THREE ALBUMS THIS YEAR Prince, of course, courted controversy in 2007 when his album 'Planet Earth', distributed by Sony in most territories, was given away as a covermount CD by the Mail On Sunday in the UK. Exclusivity deals with one retailer, normally for a certain time period, were once a little bit controversial in the North American market, but have become quite common of late with many artists doing deals with major retailers like Wal-Mart and Best Buy. It's not clear which retailer Prince is talking to in the US, nor whether a more conventional distribution partnership with a major record company will be forged elsewhere. According to the LA Times, four new guitar-heavy Prince tracks premiered on LA radio station Indie 103 last month will appear on the first of his new albums, to be called 'Lotus Flower'. The paper's Ann Powers, who visited the singer's home to hear other new material, wrote on the paper's website: "Needless to say, it was an amazing experience". She says the second new album will contrast with the guitar sound of the first by returning to "the electronic sound of When Doves Cry", while the third will be a seductive soulful collection of songs. The latter, Powers reports, is a collaboration between Prince and his new protégé Bria Valente, and was recorded because they "got sick of waiting for Sade to make a new album". Whether all three projects really do see light of day this year remains to be seen. -------------------------------------------------- ENEMY ARE RECORDING A HUGE SOUND FOR ALBUM TWO Clarke also commented on the fact he'll get to support Oasis on their UK stadium tour next summer. He told the tab: "Noel Gallagher is my hero of the year for asking us to support him. Everyone expects us to be nervous but the bigger the event, the bigger the thrill. Nerves don't come into it. You get a massive shot of adrenaline - that's the pay-off. We're going to go on, play our gig, get our rush of adrenaline and then go watch Oasis and Kasabian - what a shit job!" That last bit's irony I think. -------------------------------------------------- MONGREL PLAN TO RECORD IN VENEZUELA Speaking to 6Music, McClure said of the band, who release their debut album next month: "The Mongrel thing is just going to roll and roll, we've got plans to go and do a second record out in Venezuela with Hugo Chavez. Their culture's kind of exploded and Chavez has put a lot of his wealth into restoring the indigenous culture and stuff". He continued: "We're going to do a kind of Buena Vista Social Club style thing out there with some of their drummers, and hip hop people and horn sections and stuff. It should be fun man. Venezuela is like the new Jamaica, or Brazil, or Cuba, it's kicking off". WILCO LIVE DVD SET FOR RELEASE MANUMISSION VISITS LONDON FOR LAST ASTORIA PARTY TICKETMASTER DEFEND ADD-ON TICKET RESALE SERVICE As previously reported, the ticketing giant last year bought two ticket resale websites, TicketsNow in North America and Get Me In Here in the UK. This despite opposition in parts of the live music industry towards the growth of online ticket touting, and resentment by some promoters towards the online auction services which allow punters to resell tickets for a profit. Since acquiring TicketsNow, the Ticketmaster website in the US and Canada will redirect consumers to the auction service for concerts it is not selling tickets to or for which it has sold out its allocation. The Consumers' Association Of Canada recently said that that was wrong, because it meant that customers who think they are buying tickets from a legitimate agency when they go to the Ticketmaster website may in fact end up buying a marked-up ticket from a dodgy tout via the TicketsNow platform. The CAC's Vice-President Mel Fruitman told reporters: "It's a conflict, it's a monopoly, it's unconscionable. It may not be illegal, but it sure is immoral and unethical as far as I'm concerned". Ticketmaster VP Joe Freeman disagrees. He responded by telling reporters he thought the link through to TicketsNow provided added value for consumers looking for tickets for shows no longer available via primary ticket sellers, adding that online touting was a good thing because it saved customers the hassle of having to go to the venue on the off chance they can buy secondary tickets on the street. He added that TicketsNow offered protection to punters buying tickets via resellers. He told reporters: "If you're buying a ticket from a guy under the overpass by the Air Canada Centre, you don't know if those are going to be valid tickets until you're in the door. We're trying to bring a much higher level of consumer protection to the whole resale space". FOUR/FIVE MERGER WOULD BE BLOCKED A Four/Five merger has been mooted a number of times in recent years as the debate on how Channel 4 will be able to afford to fulfill its public service obligations in an increasingly competitive advertising market has rumbled on. It's not top of the list of options for securing Channel 4's future, though it is still discussed from time to time, and recent reports have suggested Five owners RTL have considered proposing a takeover. The Enders Analysis report says any Four/Five merger would need Competition Commission approval. They point out concerns recently expressed by the Commission regarding the proposals to launch a combined BBC/ITV/C4 on-demand video service - so called Project Kangaroo. Enders reckon the Commission would be similarly concerned regarding any Four/Five deal. As previously reported, Channel Four bosses seemingly favour proposals by which they would receive a cut of the licence fee to help the broadcaster continue to operate. Licence money would be used alongside commercial revenues. The BBC, however, strongly object to that idea, preferring to waste all that licence fee money all on their own. The BBC proposed other ways they could assist C4, most of which were rejected by their rivals - except for the proposal the Beeb made most reluctantly, giving C4 some claim to part of the Corporation's commercial division BBC Worldwide. OfCom, who also reportedly don't favour giving C4 a cut of the TV licence, are currently considering all proposals regarding to future of public service broadcasting in the commercial domain. -------------------------------------------------- ANDY PARFITT ADDS POPULAR MUSIC TO HIS BBC REMIT The role was previously undertaken by Lesley Douglas, the Radio2/6Music chief who quit, of course, following the whole Sachsgate affair. Parfitt, who had taken on the role on a temporary basis since Douglas' sudden departure, will be Popular Music chief in addition to his current role overseeing Radio 1, 1Xtra, the Asian Network and BBC Switch. He will also oversee the Electric Proms enterprise. He must be a very busy chap. Parfitt had been linked to Douglas' main old job as head of Radio 2, but he has reportedly said he is not interested in that role. -------------------------------------------------- TALK 107 CLOSES CHART UPDATE With downloaders everywhere presumably using their Christmas iTunes vouchers and topping up on hits they missed in 2008, there's a few re-entries in the Top 40 with Coldplay, MGMT and Dizzee Rascal all re-appearing. New entries proper come from Akon collaborator Lady Gaga with 'Just Dance' at 3, Sugababes with 'No Can Do' at 24 (which was in the chart the previous week at 83 on download-only sales) and Girls Aloud, who go in at 39 with the download-only sales of their new track 'The Loving Kind'. Albums wise Take That still lead with 'The Circus', followed by Kings Of Leon and Duffy who each rise a spot or two to complete the top three. The Girls Aloud best of, meanwhile, shoots back into the Top 40 to number 6, possibly on the back of the new single, or the recent ITV special, or perhaps it's on offer somewhere. Mercury winner and Poll Of Polls favourite 'The Seldom Seen Kid' from Elbow also re-enters into the Top 40, at 11, as does one of CMU's favourite LPs of 2008, MGMT's 'Oracular Spectacular', which zooms back up to 13. Other 2008 releases (and old favourites like 'Abba Gold') also return into the Top 40, presumably as a result of the post-Christmas shopping rush (and high street cost cutting). The chart is compiled by the Official Charts Company. PERRY SPLITS FROM HER GYM CLASS HERO -------------------------------------------------- BRITNEY INTRODUCES NEW BOYFRIEND TO THE FAMILY -------------------------------------------------- LOTS OF MUSIC PEOPLE IN THE CBB HOUSE Trying not to be racist from the world of music are former Sugababe Mutya Buena, former A1 boy Ben Adams, former Liberty X girl Michelle Heaton and US rapper Coolio, plus another member of the Jackson clan, this time the rebellious La Toya Jackson. TV and radio presenter Terry Christian, sort of linked to the world of music I guess, is also in there, as are Austin Powers actor Verne Troyer, Shameless actress Tina Malone, glamour model Pinder, Scottish politician Tommy Sheridan, and a certain Ulrika Jonsson. I've not been watching, but apparently Christian has been named leader of the house or something. He'll exclusively get to nominate housemates for eviction I think, with the first eviction at the end of the week. Coolio, Troyer and Adams are reportedly currently bookies' favourite to win. -------------------------------------------------- ANDRE HOPES FOR HIT ALBUM IN 09 |
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