Co-Heads Ayeroff, Harris Abruptly Exit Work Group

Co-presidents Jeff Ayeroff and Jordan Harris have exited the Work Group. The label, which boasts such acts as Jennifer Lopez, Jamiroquai, Fiona Apple, and Len, will continue as an imprint within the Epic Records Group. Work's administrative functions will be absorbed by the Epic Records Group, which will continue to oversee the label's sales, promotion, and international marketing efforts. The fate of the label's staff and whether any acts will be dropped had not been determined by deadline.

The abrupt exit of Ayeroff and Harris, who previously co-helmed Virgin Records America, ends recent speculation that the duo would bolt from Sony Music Entertainment.

--Michael Amicone, L.A.


JASRAC Unveils Internet Music Copyright System

The Japanese Society for Rights of Authors, Composers and Publishers (JASRAC) has unveiled a new copyright management system to deal with digital music distribution on the Internet. Dubbed "Dawn 2001," the system will use new safeguards such as electronic watermarks. Set to go into operation in 2001, it will unify copyright-information and royalty-collection systems; monitor and prevent illegal use of digital music by granting providers permission to use the content; and require distributors to report to JASRAC information on site access, in order to facilitate royalty distribution. JASRAC also plans to introduce a new "browsing" system to clamp down on illegal Web sites.

Meanwhile, the temporary music royalties agreement reached last year by JASRAC and local Internet access providers has been extended until March 2000 (Bulletin, Dec. 1, 1998).

--Steve McClure, Tokyo


Uni Norway Nabs New Executive

Universal Music Norway has named Roger Grafsrinningen as product manager for the Interscope, Geffen, DreamWorks, A&M, Motown, and Universal Records labels. Grafsrinningen is currently Sony Music Norway's head of sales staff; he was previously product manager/international repertoire at EMI in Norway. He takes on his new post in October, reporting to marketing director Morten Jensen. Grafsrinningen replaces Cato Ingebretsen, who recently announced his departure to become marketing manager/local repertoire at BMG Norway (Bulletin, May 20).

--Kai R. Lofthus, Oslo


Computer Graphics Company Buys Diamond; Secure Rio To Debut

Diamond Multimedia Systems, maker of the popular MP3 player the Rio, has been acquired by computer graphics company S3 Inc. Under the agreement, Diamond shareholders will receive 0.52 shares of S3 common stock for each share of Diamond stock. S3 will assume Diamond's outstanding options. The deal is expected to close in October.

Hot on the heels of the announcement of its acquisition by S3, Diamond Multimedia will introduce the Rio 500, the first version of its Rio player with a secure digital rights management system.

In addition, Diamond is expected to make several announcements regarding partnerships and the launch of its new Web site RioPort.com.

S3's stock closed yesterday down 7.28% to $8.75. Diamond's stock closed yesterday down 16.48% to $4.75.

--Eileen Fitzpatrick, L.A.


LaFace Co-Owners Looking To Sell?

Sources close to LaFace Records say L.A. Reid and Babyface are interested in selling their half of the company. The other half is owned by BMG Entertainment; its Arista label distributes LaFace. BMG declines to comment on whether it is in negotiations for full ownership of LaFace; however, the company likely has the first option to buy the other half of the label. The price for the stake is said to be about $125 million.

If the deal closes, one scenario has BMG offering a senior creative role to Reid.

LaFace's roster includes Toni Braxton, Usher, and TLC, among others.

A LaFace spokesperson did not return calls for comment.

--Irv Lichtman, N.Y.


Web Marketing Firm Launches Retail Site

Internet marketing firm i Commerce Group Inc. has launched a retail site, MusicInStock.com, with fulfillment by Alliance Entertainment Corp. The site, which claims to carry more than 250,000 titles, is linked to i Commerce's Internet "mall," which offers a variety of goods and services at www.247mall.com.


Artist Developments

Manic Street Preachers and Remy Zero begin a three-week North American tour July 15 in Atlanta.


Edel Music Acquires Danish Indie Mega Scandinavia

Hamburg-based edel music has acquired Danish indie Mega Scandinavia, the company that signed and developed Ace Of Base, from family owned holding company Wennick Holdings. Financial terms of the deal, which includes rights to current and catalog masters, were not disclosed.

The deal gives Mega president Kjeld Wennick a role as executive producer, overseeing Mega's creative activities. Mega will release a greatest-hits album by Ace Of Base later this year in Scandinavia; the act is licensed to Arista for the U.S. and Japan and to Universal in all other territories.

Mega, which employs eight people in Copenhagen, will be incorporated into edel's label structure, overseen by Scandinavia/Benelux VP Helge Trilck and Denmark GM Jakob Deichmann. Mega's repertoire will be distributed by edel's existing partners: GDC in Denmark, Sony in Sweden and Norway, and K-tel in Finland.

Edel CEO Michael Haentjes says his company bought Mega mainly for the potential of the current roster and for Wennick's hit-making abilities. "Kjeld is going to concentrate on the production side and is going to find and develop acts, rather than the day-to-day operation of a record company," he says.

Haentjes says many other acquisitions are lined up for this year. "We think by the end of the year, edel will look very different," he says. The company recently opened in Portugal (Bulletin, June 21) and plans to launch subsidiaries in other smaller territories this year.

--Kai R. Lofthus, Oslo; Dominic Pride, London


Slow Sales In Korea For Michael Jackson Benefit

Seoul-based concert promoter Cheil Communications announced yesterday that it is reducing the number of seats from 60,000 to 50,000 for a benefit concert organized by Michael Jackson and set for Friday in the South Korean capital. About 30,000 tickets had been sold as of yesterday afternoon, Cheil said, adding that Korean concertgoers are not used to buying advance tickets. Other probable reasons for the slow ticket sales are that local TV station SBS will air the concert live and that the show, which is being held in an outdoor soccer arena, coincides with the onset of Korea's rainy season. In addition to Jackson, the concert--which will benefit needy children--will feature Mariah Carey, Luther Vandross, Boyz II Men, and Rod Stewart (via satellite).

--Cho Hyun-Jin, Seoul


U.K. Report: Music Sites Trigger Growth

A U.K. report measuring the impact of globalization and new technology on the music industry was unveiled yesterday by the Multimedia Research Group at London's City University Business School. Presenting results from the three-year study, research group director Dr. Roger Wallis said that the industry should narrow its definition of piracy in the electronic arena concerning non-profit music sites. "This activity creates communities of interest and may trigger growth in general for music," he said. Wallis also questioned the assumption that all consumers will be online, despite referring to MP3 files as "a wonderful future for the music industry."

--Lucy Aitken, Music & Media


Stars Set To Perform At Special Olympics

Sugar Ray, Kirk Franklin, and Morgan Heritage will perform during the opening ceremonies of the Special Olympics on Saturday in Raleigh, N.C.


Navarre Inks New Distribution Pacts

New Hope, Minn.-based Navarre Corp. has signed an exclusive distribution deal with Siam Records, the New York-based jazz and world music label. The deal commences Aug. 3 with the release of albums by Erik Friedlander, Armsted Christian, Bakithi Kumalo, and Steve Khan & Rob Mounsey; Siam will also issue its first DVD video, the New Jakarta Ensemble's "Commonality," later this year. The label was founded by GRP's former chief engineer and technical director Mike Landy.

In addition, Navarre has inked a distribution deal with Pinnacle Music Group, the label founded by composer Kurt Bestor. Navarre will handle Bestor's eight catalog titles, as well as his new album, "The Dance," due in September.

--Chris Morris, L.A.


James Taylor Sets July Dates In U.S.

James Taylor will play six U.S. dates in July: Lenox, Mass. (3-4); Darien Lake, N.Y. (6); Hershey, Pa. (7); Holmdel, N.J. (9), and Scranton, Pa. (10). He begins the second leg of his European tour July 16 at the Montreux Jazz Festival.


What's On

Late-night tonight: Geri Halliwell (on Letterman), Kenny G (Leno), Ben Lee (Kilborn), Robert Cray (Conan O'Brien), Smokey Robinson (Later), Chaka Khan (Politically Incorrect).