Music Industry

Napster Canada To Close

Napster will cease their Canadian operations on December 16th, 2011 and the company advises their Canadian customers to use their credits/gift cards and backup their purchases prior to this date. Click here for more details.

It Makes You Think, Again !

It appears that the pending lists affair is not over.

In January 2011, the major labels in Canada had settled a class action lawsuit against them for the unauthorized use and distribution of recordings, as well as unpaid mechanical and video royalties.

EMI Music Canada Inc., Sony Music Entertainment Canada Inc., Universal Music Canada Inc. and Warner Music Canada Co. had later in May 2011 agreed to pay approximately $50.2 Million dollars to songwriters and music publishers that had not been compensated the use of their works in certain compilations and live recordings.

Well, Universal Music Group and Universal Music Canada is now suing the National Union Fire Insurance Company of Pennsylvania, their insurer, for their share of the settlement and other related expenses in the Supreme Court of the State of California in Los Angeles.

According to their November 8th, 2011 complaint found on, Universal Music Group had paid $14.4 million in damages and approximately $1.06 million in attorney fees and costs.

EMI Music Group Split For Sale

It appears that Citigroup have decided to sell individual portions of EMI Music Group according to two press releases issued yesterday.

The labels within the group will be sold to Vivendi and Universal Music Group for £1.2 Billion whilst the publishing assets of the group will be sold to an investor group that includes Sony Corporation of America, David Geffen and the estate of Micheal Jackson for $2.2 Billion (source : Citigroup press releases 111111a / 111111b).

These sales are of course subject to regulation and independent label association IMPALA expects that the sale of EMI Recordings to Universal Music Group will be “blocked outright” according to their latest press release.

Warner Out For EMI Purchase

Billboard has reported that Warner Music Group has pulled out of the negotiations for EMI.

Citigroup have allegedly renewed negotiations with Universal and Sony whilst Independent label association IMPALA filled protests about the sale with the European Commission over concerns in regards to a possible duopoly in Europe.

According to their November 8th, 2011 press release, IMPALA had preferred a sale to Warner Music Group, which they believed “could help balance the duopoly but would still need substantial remedies as it would increase the competitive gap for the independents“.

Gartner Predicts Higher Online Music Sales

Gartner Research predicts that with the decline of the physical format (like the compact disc) that subscription services and music downloads will flourish.

In a press release issued yesterday the Connecticut based information technology research company estimated that online music sales would reach $6.8 Billion worldwide in 2012 and $7.7 Billion Worldwide by 2015.

The company also predicts a decline in compact disc sales from $15 Billion last year to $10 Billion in 2015.

Astral To Launch Online Service In December

Astral Radio will be launching a online music service in December, which will be followed by a mobile compatible service in January.

The bilingual on demand streaming music and music video service will feature major and independent recordings and will be compatible with the major social media sites.

Additional information on this service can be found on this press release.