The RIAA is planning a campaign to educate consumers about "the perceived value of music" in reaction to the continuing trend of tracks being downloaded for free off the Internet. Speaking on a panel on digital delivery yesterday at the NARM convention in Las Vegas, RIAA president/CEO Hilary Rosen said, "Record companies haven't done a good job over the years maintaining the perceived value of music. Retailers don't do such a great job either." Rosen declined to give details of the campaign, characterizing it as "marketing and PR" rather than advertising. However, sources say the RIAA has met with ad agencies. NARM is not currently involved in the campaign.
Also during the panel, recording artist Melissa Ferrick of the W.A.R.? label performed a song that was recorded, encoded in LiquidAudio, and placed within 45 minutes on Tower Records' Web site for download sale at $1.49. NARM officials said that Island artist Willie Nelson, who was originally scheduled to do the demonstration, cancelled after Island parent Universal Music Group said it would not allow his performance to be sold on a retail Web site. A Universal spokesman could not be reached by deadline.
Panel member Duncan Sheik, an Atlantic artist, announced plans for a Web site that will offer digital downloads of "esoteric" tracks from signed artists, affording acts the opportunity to issue side projects that their labels would not be interested in releasing. Another panelist, CDnow director of digital media Ted Hooban, announced that the online retailer will begin offering digital downloads in six to nine months.
--Don Jeffrey and Michael Amicone, Las Vegas
In other news from NARM:
* Enso Audio Imaging, which provides RealAudio music samples for many retail Web sites, is entering the in-store listening-post business. The listening stations--currently being tested in at least one major chain--allow users to connect via the Internet with Enso's database of more than 100,000 titles, plus reviews and track listings.
--Ken Schlager, Las Vegas
* NARM announced yesterday the winners of its best-seller awards, based on SoundScan figures for the period from March 3, 1998, to Feb. 9, 1999. Winners included Brandy and Monica's "This Boy Is Mine" (Atlantic), which won for best-selling single and dance single of the year; Lauryn Hill's "The Miseducation Of Lauryn Hill" (Ruffhouse/Columbia), R&B recording; Dixie Chicks' "Wide Open Spaces" (Monument/Sony Nashville), recording by a new artist; Shania Twain's "Come On Over" (Mercury), country recording; Will Smith's "Big Willie Style" (Columbia), rap recording; and Ricky Martin's "Vuelve" (Sony Discos), Latin recording.
Stein In Talks To Merge Sire, London
Sire Record Group president/CEO Seymour Stein confirms to Bulletin that he is in talks that might merge his operation with the U.S. division of London Records under the Warner Music Group--provided Roger Ames, the former president of PolyGram's worldwide music group and controlling shareholder in London, joins Warner's international division, as expected (Bulletin, Jan. 18). Stein says he "would welcome any opportunity" to work with Ames, London chairman Tracy Bennett, and London U.S. president Peter Koepke.
--Irv Lichtman, N.Y.
Double-Digit Growth Spurt For U.S. Latin Music In '98
The Latin music market in the U.S. recorded double-digit growth in 1998, according to figures to be released today by the RIAA. Total shipments of Latin audio and music video product rose 12% from 1997 to 49.3 million units, and the value of those shipments rose 16% to $570.9 million. CD shipments jumped 22% to 32.2 million units, with value up 24% to $426.8 million. Music video showed the biggest growth, leaping 105% to 143 million units, with value up 64% to $2.1 million. Cassettes were the only configuration to show a decline, dropping 5% to 17 million units worth $142 million, down 2%.
In other news, the U.S.-based Latin Academy of Recording Arts & Sciences (LARAS) has linked with Spanish authors' and publishers' society SGAE for the Grammy Latinos Awards, the bodies announced jointly Tuesday in Madrid. The inaugural event is being organized for 2001. LARAS executive director Sergio Rozenblat and SGAE executive president Teddy Bautista said the move reflects the strength of Spanish and Portuguese music in the U.S., Latin America, and Iberia. Rozenblat said the awards will be held some years in Spain.
--Carolyn Horwitz, N.Y.; Howell Llewellyn, Madrid
Warner Pulls Free Petty MP3 Download
A free MP3 track of Tom Petty's new single "Free Girl Now" was removed from the MP3.com Web site last week at the request of his label, Warner Bros. Records. More than 150,000 fans downloaded the track during the 48 hours it was available, according to an MP3.com spokesman. The site received permission for the promotion from Petty and his management (Bulletin, March 2); the label would not comment, but during a NARM panel yesterday, Warner Bros. senior VP of sales, advertising, and marketing Jim Wagner said of the offer, "We think it is a bad precedent."
--Brett Atwood, L.A.
Sony Oz's Handlin Elected To ARIA Post
Denis Handlin, chairman/CEO of Sony Music Australia, has been elected chairman of the eight-person board of the Australian Record Industry Assn. (ARIA), replacing former EMI Australia chairman David Snell, who retired in January. Vice-chairmen are Brian Harris (Warner Music Australia chairman) and Tim Prescott (BMG Australia managing director). A new addition is Philip Mortlock, MD of indie label Origin.
--Christie Eliezer, Melbourne
Sony Ups Barnett
Steve Barnett has been promoted to executive VP of worldwide marketing for Sony's Epic Records and 550 Music. He was Epic senior VP of worldwide marketing. Barnett reports to Epic/550 president Polly Anthony in New York.
Artist Developments
Limp Bizkit will headline this year's Family Values Tour. A home video and live album of last year's outing is due March 30 from Epic.
Former Manager Suing Cher For Contract Breach
Cher's former manager, who was fired by the singer in January, is suing her for breach of contract. In the suit--filed Monday in Superior Court of California in Los Angeles--Bill Sammeth claims to have "advised [Cher] on her current comeback, devised an immensely successful marketing strategy, and secured appearances on 'The Tonight Show With Jay Leno' and the American Music Awards," without compensation as it relates to her current "Believe" album on Warner Bros. He is seeking 15% of the "gross compensation" from sales of the album, its singles, and a planned world tour.
"Believe" sold 113,000 copies this week, moving it to No. 7 on The Billboard 200; the title track is No. 1 on the Hot 100.
Cher's representative at Warner Bros. could not be reached by deadline.
--Carrie Bell, L.A.
Sony, Zomba Ink P&D Deal For Oz
Sony Music has signed a pressing and distribution deal with Zomba's newly created Australian affiliate that comes into effect when Zomba's deal with Mushroom expires next month. First releases under the deal will be albums by Britney Spears and Backstreet Boys. Newly named as local head of Zomba is Scott Murphy, former managing director of Mushroom Distribution Services; Mushroom is today expected to name Jon Satterley, MD of Roadrunner Australia, as Murphy's replacement.
--Christie Eliezer, Melbourne
Artists' Pension Suit Moves Closer To Trial
A 6-year-old lawsuit by 16 veteran '60s artists against the major record companies and the AFTRA Funds pension plan moved closer to trial following a ruling yesterday by a U.S. District Court judge in Atlanta. The suit alleges that administrators underpaid or intentionally neglected to pay retirement and health funds over the past 40 years.
The judge granted a motion to proceed with the discovery phase, meaning that for the first time, the artists' lawyers will be able to view all documents pertaining to the case. Plaintiffs include Sam Moore, Curtis Mayfield, Jerry Butler, Brian Hyland, and the estates of Jackie Wilson, Mary Wells, and Moore's partner, David Prater.
Officials from the record companies declined to comment.
--Bill Holland, Washington, D.C.
Big Guns Help Out On Clint Eastwood Song
Clint Eastwood has co-written a song that will be in his new movie, "True Crime." The tune, "Why Should I Care," was written with Linda Thompson and Carole Bayer Sager and produced by Tommy LiPuma and David Foster. Diana Krall recorded the song, which will be released as a single March 29 on Verve and will be on Krall's new album, "When I Look In Your Eyes," due June 8. Eastwood is shooting a clip for the song, his music video directorial debut.
--Melinda Newman, L.A.
More Dave Matthews
Dave Matthews will follow his current acoustic tour with a full Dave Matthews Band tour, starting May 1 in Tampa, Fla.
--Ray Waddell, Amusement Business