Trans World, Virgin Gear Up For Album-Download Kiosks

Trans World Entertainment and Virgin Megastore will be among the first retailers to install Digital On-Demand's Red Dot Network kiosk system, according to sources; Kmart is expected to follow. Virgin will utilize the system, which allows consumers to download albums, starting July 16 at its new Columbus, Ohio, store, with a North American rollout to follow. Trans World is believed to be gearing up for a September launch.

Digital On-Demand has licensed more than 4,000 catalog titles from Sony Music Distribution, which has acquired a stake in Digital On-Demand. Under the program, consumers choose an album, and the content is copied onto a CD for the same price as one off the shelf. Original cover art and liner notes are also downloaded. The program will also be applied to DVD Audio and portable SDMI-compatible devices, although they will not be available at launch.

--Eileen Fitzpatrick, L.A.


Koch Buys Velvel, Names Frank To Head New Unit

Port Washington, N.Y.-based Koch International has informed retail accounts that it has acquired Velvel Records from founder Walter Yetnikoff. Koch will take over U.S. distribution of Velvel and Bottom Line Records from BMG, which had distributed the label since February 1998, following Velvel's split with minority partner Navarre Corp. Edel America was recently in talks with Velvel about acquiring certain of its assets (Bulletin, May 6).

Bob Frank will continue as Velvel president and will be president of Koch Entertainment LLC, the recently formed division comprising Koch's wholly owned label interests, including Dave Allen's new twenty14.com (Bulletin, May 21). Frank will report to Koch CEO Michael Koch. Future Velvel releases include titles by the Smithereens, Mephiskopheles, and Ian Moore; the label's catalog includes titles by the Kinks, Amazing Crowns, Pat DiNizio, Paul Rodgers, and Bill Wyman.

--Chris Morris, L.A.


IFPI: Global Piracy Rising

IFPI chairman Jay Berman is expected to call for greater cooperation from the world's governments in the fight against music piracy when the labels' body presents research today in London indicating a significant rise in unit sales of pirate product. The presentation is expected to show that in the past year, Hong Kong, Estonia, Latvia, Ukraine, Malaysia, Israel, the Palestine Authority, and Nigeria were added to the IFPI's list of territories where pirate product accounts for more than half of domestic sales. Berman is understood to want tougher penalties, more cooperation from law-enforcement agencies, and improved judicial procedures. The IFPI will also note the rise in CD manufacturing capacity, citing mainly Asian and eastern European countries where this is now several times the legitimate local demand. Further, the body will point to CD-R piracy in China, France, Germany, Greece, Japan, Mexico, the Netherlands, and the U.S. as a "new and serious problem."

--Mark Solomons, London


$45 Million To MP3.com From Cable Giant Cox

Download music portal MP3.com has received $45 million in financing from Cox Interactive Media, the multimedia division of cable giant Cox Enterprises. The company, which is getting an estimated 10% equity stake in MP3.com, will form several music Web sites offering downloadable content. The partnership will likely result in significant distribution for MP3.com and the new sites on broadband Internet services offered via Cox-owned cable systems. The financing comes as MP3.com readies its IPO, which is expected to raise another $115 million.

--Brett Atwood, L.A.


EMD Becomes Last Major To Hike Prices

EMI Music Distribution (EMD) has become the last U.S. major to raise its prices this year. The $16.98 CD list-price equivalent has been upped by seven cents, and the $17.98 list-price equivalent by eight cents. EMD compensated accounts by providing ongoing discounts and extended dating for its catalog: Excluding its top 40 sellers and Beatles titles, frontline catalog now carries an extra 30 days dating and a 4% discount, and deep catalog has an extra 90 days and 6% discount.

--Ed Christman, N.Y.


Almo, edel Sign European Distribution Deal

Almo Sounds has inked a marketing and distribution deal for Europe outside the U.K. with German indie edel. Almo has its own operation in the U.K., where it is distributed by 3MV/Pinnacle. Hamburg-based edel has named Verena Berscheid, formerly product manger for rock and alternative repertoire, as Almo label manager. The first releases under the deal, due by the fall, are Bijou Phillips' "I'd Rather Eat Glass" and "Return Of The Grievous Angel: A Tribute To Gram Parsons."

--Christian Lorenz, Music & Media


New Sales Heights For Backstreet Boys

Backstreet Boys' Jive album "Millennium" holds at No. 1 on The Billboard 200 this week, selling 438,000 units, according to SoundScan, while Ricky Martin's eponymous C2 set stays at No. 2 with 313,000. In addition to having the biggest sales week in the SoundScan era, "Millennium" has now rung the most sales for an album's second and third weeks. Four albums debut in the top ten: Ja Rule (Def Jam/IDJMG), No. 3 with 184,000 units; Tru (No Limit/Priority), No. 5 with 139,000; Jennifer Lopez (Work), No. 8 with 112,000; and Blink 182 (MCA), No. 9 with 110,000.


GetMedia, Webradio Team For Radio-Station CD Sales

Internet radio service Webradio.com and e-commerce company GetMedia are teaming to offer radio stations the ability to broadcast and sell music simultaneously over their Web sites. San Jose, Calif.-based GetMedia is integrating its technology into Webradio's Java-based streaming audio player, which has more than 90 radio-station affiliates. Visitors to stations' sites will see title and artist information about the songs airing and will have the option to click and buy without leaving the station's site.

GetMedia will handle installation, orders, customer service, and fulfillment on behalf of the stations, which will receive a percentage of revenue from CDs sold on their sites. GetMedia intends to add a toll-free telephone number for orders in the future.

According to Webradio, pricing is competitive with other online music retailers.

--Chuck Taylor, N.Y.


Music Choice, Arista Link

Music Choice, a programmer of digital music channels over cable and satellite TV, has launched a program with Arista for three custom-made audio broadcasts in July, August, and September. The shows, which will air over Music Choice Showcase I, will begin with "Classics In The Key Of G: A Kenny G Special," promoting the artist's album that comes out June 29.

Prior to that, Music Choice will broadcast privately during the National Assn. of Broadcasters convention a live Kenny G concert June 13. A video of the show will be programmed later by cable operator Comcast to its affiliates and by Music Choice to its subscribers and will be webcast at Arista's Web site. Music Choice programming is available in 8.5 million U.S. homes.

--Don Jeffrey, N.Y.


Lawmakers Decry Lyrics Provision

Opposition to a pending provision that would affect record retailers in the House version of the juvenile-justice bill came yesterday from an unexpected quarter: Republican lawmakers. The measure, introduced Tuesday, would require retailers to show lyrics to parents who ask to review them (Bulletin, June 9). Rep. Mark Foley, R-Fla., chairman of the GOP Entertainment Industry Caucus, said the provision is part of a "hodgepodge of phony solutions" that would "do little to combat youth violence." Rep. Howard Coble, R-N.C., chairman of the House Intellectual Property subcommittee, called the plan "draconian." The bill will be debated in the House next week.

--Bill Holland, Washington, D.C.


Costello To Reprise

Former Capitol Records executive Phil Costello has been named senior VP of promotion at Reprise Records, according to sources. He reports to Reprise president Howie Klein.


Hard Rock RockFest Scores Big Numbers

The Hard Rock RockFest Presented by Oldsmobile Alero drew 127,000 fans June 5 to Atlanta Motor Speedway. The show grossed more than $3.4 million, with a lineup of Better Than Ezra, Citizen King, Eve 6, Collective Soul, Everlast, Live, Marvelous 3, Silverchair, Sugar Ray, Taxiride, Third Eye Blind, Mighty Mighty Bosstones, and the Offspring. Tickets for the event were $28.50.
RockFest's success should propel Hard Rock Cafe further into live music. "Hard Rock Cafe is definitely committed to building the live entertainment business," says Brian J. Murphy of Warner/TBA, RockFest's executive producer. RockFest continues with a six-date tour featuring Smash Mouth and Marvelous 3, starting June 23 in San Antonio.

--Ray Waddell, Amusement Business


QVC's Q Label Names Key A&R Executive

Q Records, the Atlantic-distributed label of cable retailer QVC, has named Jonathan P. Fine as senior director of A&R. Fine, who was in A&R at BMG joint venture Robbins Entertainment, reports to Q Records GM Alan Rubens in West Chester, Pa.


What's On

Late-night tonight: Jewel (on Letterman), Tom Petty & the Heartbreakers (Leno).

The 1999 MTV Movie Awards air tonight at 9.

Ricky Martin plays "Today" tomorrow morning.