Archive for February, 2011

WaTunes: Pandora Files For IPO As It Nears Profitability

Source: Hypebot

<img class="asset asset-image at-xid-6a00d83451b36c69e20148c7b3a3f5970c" title="image from www.wdaz.com” src=”http://www.hypebot.com/.a/6a00d83451b36c69e20148c7b3a3f5970c-100wi&#8221; alt=”image from www.wdaz.com” style=”margin: 0px 5px 5px 0px;” /> Pandora announced on Friday that it has filed Form S-1 with the U.S. Securities and Exchange Commission as the first step towards an initial public offering of stock.  Pandora has a commanding 50% share of all internet radio listening time among the top 20 stations and networks in the U.S. according to Ando Media.

According to the SEC filing, the company's revenue was "$55.2 million and $90.1 million in fiscal 2010 and the nine months ended October 31, 2010, respectively." That meant that Pandora had a net loss of $16.8 million in fiscal 2010 that narrowed to just $0.3 million in the nine months ending October 31, 2010.

The booking managers of the proposed offering will be Morgan Stanley and J.P. Morgan Securities LLC.  Co-managers will be William Blair and Stifel Nicolaus Weisel. The number of shares to be offered and the price range for the offering have not yet been determined.

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February 13, 2011 at 12:43 am Leave a comment

WaTunes: WMG Pushing For Sale To Beat EMI

Source: Hypebot

In what feels like a race to the bottom of the hill, the world's #3 music group, Warners, is pushing hard to be sold before #4 EMI is also on the  market to potential buyers. At the same time that Citigroup is busy pouring of EMI's books to ready it for a sale. "The challenge is they are both heading towards a situation where they're going to compete for buyers," said one music industry exec.

20 parties have expressed interest in WMG, according to the NY Post.

Most often named as potential bidders for all or part of either music group include: BMG, Zomba founder Clive Calder, Russian investor Leonard Blavatnik, Universal Music; Sony Music, equity firms KKR, Apollo and Providence and Netherlands-based music publisher Imagem.

February 12, 2011 at 4:39 am Leave a comment

WaTunes Tip of the Week: How to Share Content on Twitter

February 10, 2011 at 4:07 pm Leave a comment

WaTunes: The Case Against Artist Management

Source: Hypebot

This post is by Robin Davey of The Hoax and The Bastard Fairies.  Interview.

image from 1.bp.blogspot.com Managers don't know more than you about the music business. They may know more people in the business, but it doesn't mean they know more about it. It's a bold statement I know, but the reality is the music business they now deal with is changing so rapidly, that everybody is learning and it's a level playing field now.

The old school ideology is over.

The previous management model was based on a system that paid for radio, did favors for favors, and played the game. The only thing it had in common with what was happening on the street, was its similarity to the world of pimps and ho's.

Name of the Game

A manager was only as strong as their contacts. If they had a hot act then they could pimp that out to every limo that pulled up to the street corner, and then they would sell to the highest bidder. Of course, the more the acts were prepared to compromise themselves, the more money the manager could make.

Exploitation was the name of the game, and if you were not prepared to partake then there were plenty of other younger, better looking and more willing participants waiting to fill your metaphorical, clear-soled high heels. There were exceptions of course, but the more the business lost its footing, the more desperate those involved became. When only 10% of acts on major labels made any sort of profit, the manager's job became that of getting the band signed, inking the deal, and getting 20% of advances.

This is where creating the illusion of early success became the managements main skill. The concept of the showcase doesn't do the concubine analogy any favors either. Setting up a cozy atmosphere for the A&R kids to see the band perform live, it's more like a strip club mentality than actual reality. When only 10% made money, you have to say, that's an awful lot of managers not doing a very good job.

Take a Role

The new music industry is about small business, not big business. Cottage Industries are where the success stories of the future will be born. The bands who take the reins for themselves, divvying the responsibilities to each member, becoming an efficient well-oiled machine both on stage and off, these are the ones who will nurture a long career for themselves. You are only onstage for a very small portion of the day, and early in your career gigs don't happen every night. This is when you need to learn the ropes of management.

If you are a band, it is important that each of you take a role. Sure, the singer might be a moody poet and his dark side might not make him the best booking agent material, but he can still design the poster and stick them up all over town.

Drummers are notoriously good at making friends, get them to handle press; it's amazing how far a little charm will go. Bass players do make good booking agents; they tend to be personable but a little less bombastic than drummers, which make them good negotiators. Guitar players spend their life learning scales, this is just math by another name – let them keep the books in order. I am totally generalizing of course, but you will find that you each fit a role that you can be effective at.

Your Fifth Beatle

When the time comes that things start to get out of hand then you can look at enhancing your team. It may be time to bring in an accountant, or a booking agent, and most definitely a lawyer when deals of any sort get put on the table. Putting in the hours and learning what a manager actually does, will give you the experience to make the right decisions in your career. It may even be that do you do find that rare thing – a great manager whose can impact you career favorably.

However, it will be the work you have done previously that will enable you to tell if he is a Paul McGuiness, or just simply a pimp.

Being represented by someone, whose goal is to get you the deal, basically means you are being misrepresented. Any self respecting manager these days should be running your label, building your brand and embracing your self-sufficiency, not trying to sign you to a failing system.

If your manager is trying to get you signed, number one, they obviously don't understand where this business is headed. Number two, they are not going to have much managing available for them to do.

When all hell breaks loose find your fifth Beatle, but until then… remember, if you deal with pimps the only person you wind up fucking is yourself.

February 8, 2011 at 4:03 am Leave a comment

WaTunes: The Most Popular Music Websites In 2010

Source: Hypebot

<img class="asset asset-image at-xid-6a00d83451b36c69e20147e24ca9dd970b" title="image from www.getentrepreneurial.com” src=”http://www.hypebot.com/.a/6a00d83451b36c69e20147e24ca9dd970b-100wi&#8221; alt=”image from www.getentrepreneurial.com” style=”margin: 0px 5px 5px 0px;” /> Ryan Van Etten (@ryanve), Editor/Producer of VirtualMusic.tv, has created a fascinating music website heat map; it depicts estimated web-based music consumption in the U.S. in 2010.

The visualization is based on traffic data from Compete. Green indicates positive growth in 2010. Red indicates negative growth in 2010. Notable is the fact that cloud-based music services, aside from we7 and Rdio, had a bad year traffic-wise. we7 and Rdio may have grown, but they appear to hold a much smaller percentage of consumer mind-share than their competitors.Take a look:

February 4, 2011 at 8:11 pm Leave a comment

WaTunes: Keeping Up With the Updates!

Hey everyone,

Exciting times are ahead. As you can see, we've made a huge site update to enable us to seemlessly work with Facebook. As a Facebook user, using our service to download and share music has just been made simple.

With the new color scheme to default to Facebook, we've made it easier and more cool for you to download and share music. Currently we are working on small bugs that deals with Facebook sharing mechanisms. Once those are completed, I believe we are able to provide you with a fully furnished product!

As always, please share and post with us your feedback regarding our service and we'd be more than happy to help you

February 2, 2011 at 4:33 pm Leave a comment

WaTunes: EMI announces successful capital restructuring, and change of ownership

Source: Hypebot

Debt dramatically reduced;

EMI now has the financial flexibility to invest in its strategy for growth.

EMI Group Ltd (“EMI”), one of the world’s leading music companies, today announces that Citigroup (“Citi”) has acquired 100% of its share capital. Immediately following the acquisition, Citi completed a recapitalization of the company. As a result, the company’s debt has been dramatically reduced by 65% from £3.4 billion to £1.2 billion, and the company has in excess of £300 million of cash available. The new capital structure provides EMI with the financial strength and flexibility to continue delivering on its strategy to maximise value for the artists and songwriters it is dedicated to serving.

Following the appointment of Peter Spratt and Tony Lomas of PwC as administrators to Maltby Investments Limited (“MIL”), the administrators sold EMI and its immediate holding company Maltby Acquisitions Limited (“MAL”) to Citi. Immediately following the transfer in ownership, Citi effected a debt-for-equity swap to recapitalise EMI. The EMI Group continues under the same management and is now completely separate to MIL, which remains in administration. Neither MAL nor EMI were in administration during the process.

EMI has achieved creative and commercial success over the last twelve months and will continue to pursue an ambitious growth strategy.

Roger Faxon, EMI’s chief executive, said: “The recapitalization of EMI by Citi is an extremely positive step for the company. It has given us one of the most robust balance sheets in the industry with a modest level of debt and substantial liquidity. With that solid footing, we are confident in our ability to drive our business forward. We have already made great progress in meeting the challenges facing our industry. The closer alliance between our two operating divisions is already delivering impressive results on behalf of the creative talent we are privileged to represent. We have a clear vision for the future, a strong and committed management team, and now the right capital and financial structure in place to deliver successful outcomes for artists and songwriters.”

“Citi today took ownership of MAL, the holding company that controls EMI. In the process, the previously unsustainable debt load at EMI was reduced by 65%, leaving the company with a strong balance sheet and the ability to invest in and grow its business. This is a positive development for EMI, its employees, artists, songwriters and suppliers. Our objective is to have EMI perform its absolute best for our shareholders over time. EMI is an iconic business and we are completely supportive of both its management and its strategy. It is business as usual for everyone at EMI,” said Stephen Volk, Vice Chairman of Citi, who will be the new Chairman of Maltby Acquisitions Limited.

February 1, 2011 at 8:24 pm Leave a comment


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