Sources: M.S. Distributing Parent Trying To Sell Music Assets Trying To Sell Music Assets

Puzzlesoft Corp. is attempting to find a buyer for M.S. Distributing's music assets and has approached other independent distributors to gauge their interest, according to several sources. Some sources additionally report that M.S. president Tony Dalesandro and executive VP John Salstone--who in July sold M.S. to L.A.-based online video retailer Movietown.com, which then created the umbrella firm Puzzlesoft--have discussed the possibility of buying back the Hanover Park, Ill.-based distributor with the current ownership.

A spokesman for Puzzlesoft had no comment.

Most observers believe that Puzzlesoft's hunt for a buyer of its audio interests is a last-ditch attempt by the embattled company to avoid filing for bankruptcy protection. The most prominent labels using M.S. rapidly jumped ship after Dalesandro and Salstone abruptly left the company's offices Aug. 31, on what has been termed a "paid vacation" (Bulletin, Sept. 2). The executives unexpectedly returned to M.S. on Sept. 27 (Bulletin, Sept. 28).

The video side of M.S. is also in disarray: Video sales director Craig Keith and 10 video sales staffers resigned Sept. 30, according to sources.

--Chris Morris, L.A.


ASCAP Revamps Its Business Operations

In its biggest internal reorganization since 1993, ASCAP has established four business groups--performing rights, membership, enterprises, and headquarters--in a move to "maximize operational effectiveness." Three of the groups will be helmed by newly appointed executive VPs; the headquarters group will report directly to ASCAP CEO John LoFrumento. "What ASCAP has done is to delegate to the leaders of these groups the ability to have more specific responsibility to achieve decision-making," LoFrumento tells Bulletin. "What's different for a performing rights organization is that traditionally, decision-making flows to the top, where the final decision is made."

ASCAP veterans named to the executive VP posts are Al Wallace (performing rights), formerly COO; Todd Brabec (membership), formerly senior VP of membership; and Marc Morgenstern (enterprises), previously VP of strategic planning.

According to LoFrumento, the 1993 reorganization saw ASCAP's staff roster reduced from 900 to 600. "We'll be at that level into the new century," he says.

--Irv Lichtman, N.Y.


SFX Sells Control Of Bill Graham Management

Longtime managers Mick Brigden and Arnie Pustilnik of Bill Graham Management (BGM) have purchased a controlling interest in the firm from Bill Graham Presents (BGP) parent SFX Entertainment. Acts represented by BGM include Train, Joe Satriani, the Neville Brothers, Brother Cane, Aaron Neville, and Taj Mahal.

BGM, formed in 1977, had been wholly owned by BGP and was acquired along with other BGP assets by SFX in January 1998. By turning over control of BGM, SFX sends a signal that it will not focus on artist management in the same way it has athlete representation. SFX earlier divested itself of the QBQ booking agency (Bulletin, Sept. 1).

The move gives BGM more freedom, according to Brigden. "It appeared to us we could do better if we were free and clear of being part of such a large corporate entity," he says. "But we didn't want to divorce completely. We just wanted to leave home."

Jay Wilson becomes a partner in the new venture. The Bill Graham Management name will be retained, and the firm will remain based at BGP's San Francisco offices.

--Ray Waddell, Amusement Business


Jennifer Lopez Tops Noms For Billboard Video Awards

With seven nominations, Jennifer Lopez leads the list of nominees for the 1999 Billboard Music Video Awards, to be held Nov. 12 at the Loews Santa Monica (Calif.) Beach Hotel. Lopez's videos for "If You Had My Love" and "Waiting For Tonight" received two nods each in the dance category (for best clip and best new-artist clip); "If You Had My Love" was also nominated for the Maximum Vision Award (given to the video that best advances an artist's career), best pop clip, and best new-artist clip in the R&B category.

Other multiple nominees include Christina Aguilera's "Genie In A Bottle," with four mentions, including the Maximum Vision Award; Ricky Martin, with three, including Maximum Vision for "Livin' La Vida Loca" and best new-artist clip, jazz/AC, for "She's All I Ever Had"; and Lauryn Hill, also with three, for "Ex-Factor" (best clip and best new-artist clip, R&B) and "Everything Is Everything" (best new-artist clip, rap/hip-hop).

A complete list of nominees can be found at Billboard Online (www.billboard.com) and in the Oct. 16 issue of Billboard.

--Carla Hay, N.Y.


Berman: Japan Has Critical Role In C'right Protection

IFPI chairman Jay Berman, speaking yesterday at the Recording Industry Assn. of Japan's Asia/Pacific Regional Copyright and New-Technology Forum, hailed the consumer-electronics industry's increased awareness of the importance of copyright protection. Berman noted that hardware firms giving presentations emphasized the copyright-protection features of new products such as Super Audio CD and DVD Audio. "That has not been something that has characterized our relationship with the consumer-electronics industry in the past," Berman said. He added that Japan--as the world's second-biggest market for music, home of the world's leading consumer-electronics companies, and the leading economic power in the Asia-Pacific region--has a crucial role to play in ensuring that copyrights are protected in the digital era. "If we're going to get it right, let's get it right here," Berman said.
--Steve McClure, Tokyo


Fisher Takes MD Post With Connoisseur

Bob Fisher has been recruited as managing director of London-based indie Connoisseur Collection, which is active in the U.K. compilations market. He was managing director of catalog imprint Westside Records. Formed in 1986, Connoisseur Collection is a joint venture between the Pinnacle group and theatrical specialist First Night Records. Fisher succeeds Pete Summerfield, who departed last year.
--Adam White, London


Olivia In 'Grease' Lawsuit

Olivia Newton-John has filed a suit against Universal Music Group (UMG), claiming she was shortchanged on royalties from sales of the hit 1978 soundtrack for "Grease." The action, filed Wednesday in California Superior Court in L.A., seeks damages of at least $230,000, plus interest. According to the suit, under a 1980 pact, Universal agreed to pay Newton-John a name and likeness royalty equal to that received by her "Grease" co-star John Travolta and paid those royalties over a 15-year period. However, after an audit covering the 1992-96 royalty period, Universal allegedly took the position that no such royalty was due.
A spokesman for UMG says the company does not comment on pending litigation.
--Chris Morris, L.A.


Thaler Joins MEG

Veteran manager Doug Thaler has joined New York-based Metropolitan Entertainment Group (MEG) as VP of its management division. Thaler, who has worked with Motley Crue, Bon Jovi, and Scorpions, will oversee the careers of Metropolitan's roster of talent, which includes Art Garfunkel, Rusted Root, Mike Errico, and Vertical Horizon.
--Michael Amicone, L.A.


EMusic Hires Execs

Downloadable music retailer Emusic.com has hired former World Domination Records president Dave Allen and veteran executive Stan Layton. Allen will serve as director of content, and Layton is director of sales and marketing development. Allen had been director of A&R and Internet strategy at Koch Entertainment's twenty14.com, and Layton was VP of marketing and sales at Avenue Records. Allen reports to VP of content acquisition Brian Brinkerhoff; Layton reports to senior VP of sales Spencer Leyton. Both are based in L.A.
In addition, Orrin Keepnews has been hired as a consultant to build Emusic's jazz category. The Bay Area-based producer founded the Riverside, Milestone, and Landmark labels.
--Eileen Fitzpatrick, L.A.


Jupiter Raises IPO Price

Jupiter Communications Inc.--the New York-based Internet research company that publishes projections on the online music business and sponsors the Plug.in conference on new media--has raised the price of its shares to $21 for its projected initial public offering today. The company is offering 3.125 million, which would raise $65.6 million. Shares will be listed on the Nasdaq Stock Exchange under the symbol JPTR. The underwriters are Donaldson, Lufkin & Jenrette, Deutsche Banc Alex. Brown, Thomas Weisel Partners LLC, and DLJDirect Inc.
--Don Jeffrey, N.Y.


Matthews In Film

Dave Matthews will make his film debut in the Legacy Entertainment remake of the family classic "Where The Red Fern Grows." Production is under way in Oklahoma.


What's On

Late-night tonight: Sting (on Letterman), Sheryl Crow (Conan O'Brien), Joey McIntyre (Politically Incorrect).

S Club 7, Pet Shop Boys, Liam Gallagher and Ocean Colour Scene, Eurythmics, and Gabrielle play "Top Of The Pops" tonight.

VH1 begins live coverage of the three NetAid concerts tomorrow at
3 p.m. ET.