EMI Lose $1.2 billion in the Last Financial Year

It has just been finalised that EMI lost a huge $1.2 billion in their financial year ending March 31st. This figure dwarfed the prio year’s $455 million in the red.

Some losses stem from restructuring after Terra Firma’s takeover. But EMI underperformed its competitors using most benchmarks. CD sales at EMI fell 45% from 2005 to 2007 compared to an average market decline of 19%. EMI projected 51% revenue growth in digital saled and delivered 29% growth despite being the first to drop DRM.

“There should be no false expectations,” the report stated. “EMI cannot be turned around overnight.” I dont see how EMI can get out of this current situation, and im sure in the current global economy situation there is no chance anyone will acquire what is left of the EMI assets.

RouteNote on HypeBot

Steve does a little Q&A session on HypeBot – repeated here:

We continue our ongoing 4QFor (Four Questions For) series with Steven Finch, the CEO of Insomnia Ltd, which owns music 2.0 start-ups www.routenote.com, www.crenk.com, www.adphilia.com, and a record label and recording studio. You can learn more about Steve’s companies here. (Read more 4QFor interviews with the heads of OurStage, Sonicbids, imeem, We7, ReverbNation, New Music Strategies and Nimbit here.)

Q1.  What major changes in the music industry do you foresee over the next year?
2008 will be a very interesting year for the music industry. We will continue to see the major labels complaining about the music industry declining, when in fact it is only CD sales that are heading downwards. The distance between the major labels and independent labels will continue to get closer, thus proving in this day and age that artists don’t need a major label to succeed!

Q2.  How are you and your company preparing to benefit from these changes?
We strongly believe in independent artists and labels being able to promote their music to the widest possible audience, without having to worry about barriers to market. RouteNote wants to eliminate these barriers for independent or unsigned artists, and allow good artists to stand out from the crowd.

Q3.  What excites you?
The music industry as a whole really excites me. It is changing and twisting all the time and with so many emerging business models in the marketplace at present, who knows which ones will actually succeed or fail. Lots of people are talking about music heading towards ‘free’, I think this might be the case…

however I still believe users are willing to pay for something that is actually worth something. Im willing to pay for music as long as I know I can transfer it from computer to iPod to CD and back, whenever I want to and as many times as I want. A revolutionary watermarking service which tracks DRM free music is the way forward.

Q4. What’s next?
The music industry has always been based around old practices, and now it seems that it is time for new beginnings. RouteNote will enter the music market with the aim of providing artists what they want. Artists want ease of use, with the ability to profit from their achievements. RouteNote will provide this and more.

Link: http://www.hypebot.com/hypebot/2008/03/interview-4qfor.html

KillerStartups blogs about RouteNote

Newcomer to the social music scene RouteNote, is designed for independent musicians who are seeking to distribute their music. The service is partnered with a handful of today’s most successful online music stores/outlets including Napster, Snocap, and Samsung Mobile. Artists get instant access to worldwide distribution, plus they retain full ownership of their songs. There are no sign up fees, and artists receive a full 90% of their sales. RouteNote’s service is non-exclusive and they also provide other venues for artists to distribute their music including, film, TV and radio. Free self promotional tools include widgets, and banners among other things. More partnerships with other music outlets are in the works.

“RouteNote is an online music distribution service providing artists instant access to a large proportion of the online market. Designed and built to take advantage of the shift towards independent and self-publication through online and mobile music outlets, and the consumer switch to online purchasing as outlined by the success of iTunes, Myspace and Pump Audio, RouteNote is partnered with some of the biggest retailers on the web to give artists massive and immediate availability for their tracks.”

RouteNote offers musicians a much easier way to distribute their music to a worldwide audience. Wading through copyright and licensing laws is difficult and possibly prohibitive. For independent artists RouteNote’s service takes care of all their needs, plus they get to keep most of their profits.

Link: http://www.killerstartups.com/Video-Music-Photo/routenote-com-music-distribution-the-web-2-0-way

CDBaby Sale Seems To Have Been Way To Cheap. $22m Is Crazy!!

Derek Sivers earned $22 million from the sale of CD Baby, according to an interview surfacing Thursday.  Sivers sold the company to Disc Makers in early August of this year after breaking ground in the do-it-yourself, or DIY, artist space in the late 90s.  “I knew that was about the right price,” Sivers disclosed to Venture Voice.  “We actually didn’t bicker or negotiate over the price one bit, I just set a price and they said okay.”

According to Sivers, CD Baby pulled revenues of roughly $100 million at the beginning of this year, a fourfold increase over a three-year period.  The company employed 85 people at that point, though Sivers rarely visited the office.  “I really started letting go in 2002,” Sivers shared.

A lot of people are talking about a good winfall for Sivers, but Im really too sure what numbers they are looking at. CdBaby published a report stating their sales from January to July 07, which made up of $21m in revenues, thus by the end of the year Im sure they would have around $50m in revenues. From what I have seen of web based enterprise acquisitions lately, they are normally around 5x revenues, thus placing Cd Baby around the $250m mark. Therefore selling at $22m is just a crazy cheap price and not a winfall!

Other sites who have shared their opinions include, Paidcontent.org, TheDeal.com, Silicon Alley Insider, and Digital Music News.

RouteNote on the Inquisitr Blog

RouteNote is an online music distribution service that provies artists with instant access to a large proportion of the online market.

Using RouteNote is simple: artists upload tracks to the RouteNote catalogue and enter into a non exclusive agreement permitting RouteNote to distribute their music. They then select the outlets they want their music available on and within moments their songs are available for purchase across a range of sites. RouteNote’s cut is highly competitive, with the company taking only 10% of each sale.

The service is aimed at independent musicians looking at ways of distributing their music, and offers a variety of promotional support tools as well. Distribution partners include Napster, Snocap, Samsung Mobile and iTunes.

It’s a neat middle-man service with great rates targeting an interesting niche. If you’re an unsigned muso looking for a leg up, RouteNote is worth a look.

http://www.inquisitr.com/745/routenote-offers-online-music-distribution/

Imeem Is Now Live On RouteNote

Here at RouteNote, we’re constantly trying to find new ways to get your music to earn money for you. To this end, we’ve signed up a new retail partner, imeem. They’re a social network, aimed at introducing their users to new music and video content. While anyone can upload their music to the site, RouteNote artists uploading their music to the site will get a share of the ad revenue imeem makes from anyone visiting their profile pages and listening to their songs.

To start the revenue flowing, you’ll need to revisit the tracks that you want to use on RouteNote and select imeem as one of the retailers for each track. Then create a profile for yourself on imeem and upload the files for the music you’ve selected to your profile. It is very important that you use *exactly* the same file you uploaded to RouteNote for uploading to imeem, as their software matches the files to confirm that your material is the same music we have on file as yours. Without this matching up imeem can’t confirm that you are who we say you are, and will either delete the profile you make, or keep all the money from ad revenues.

If you’re interested in using imeem as a retailer for your music, it’s important that you know what you’re buying into, so please visit their site here: http://www.imeem.com/tour/tourmusic.aspx

Please take the tour and look at their terms and conditions, and if you decide to sign up, we’ll see you onsite!

Last.fm Is Now Added To RouteNote – Opt In Now!


Here at RouteNote we are always trying to find ways to improve our service. With so many new music companies appearing online, we thought it was about time we started to sign more agreements with them. Our most recent addition is Last.fm. Last.fm is a UK-based Internet radio and music community website, founded in 2002. It claims over 21 million active users based in more than 200 countries. On 30 May 2007, CBS Interactive acquired Last.fm for £140m.

RouteNote artists will now be able to opt in to Last.fm. Last.fm will be paying royalties at the end of every quarter, with the first available on October 31st. Royalties will be paid for every time your track is played by on the Last.fm site or off site using their tools.

How do I opt in? If you haven’t uploaded your music yet, then head over to Single or Album upload and you will find the last.fm in our retail partner stores. If you want to opt in with any of your current online tracks, then go to your My Content section, then edit each track, with ticking the box for last.fm in the retail partners.

We hope that adding Last.fm to our partners will help all our artists improve their royalties.

7Digital Launched Universal Music into Their Catalog

7digital (the UK based mp3 store) has started selling music from Universal Music today. This is the first time in Europe the tracks have been offered in 320k mp3’s, and seems to be selling both the new releases and its back catalog.

Hypebot mentions that it is quite strange that there was no formal press release by either party. Here at RouteNote we would be very keen to talk to a representative from 7digital about including our catalog in their system.

Napster Open to Sale. This Was Definitely On The Cards

Napster has hinted that the company is up for sale again, saying in its response to a dissident shareholder group that the company is once again exploring possible strategic alternatives, and has retained UBS Investment Bank to assist in the process. The company hired UBS two years ago to explore a possible sale, but no deal emerged. Napster informed shareholders of the move in a letter that also said the company believes that three proposed dissident board candidates are “unqualified.”

The company said the dissident candidates “have offered no specific business plan, other than suggesting a vague review of Napster’s business,” and also “have no significant ownership in Napster and, in fact, have been frequent sellers of Napster stock.”

Napster instead urged shareholders to re-elect its current slate of independent directors.

Source: DMW Media