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Concord Buys Telarc

On December 19, the Concord Music Group announced its acquisition of Telarc International Corporation, which includes the venerable audiophile label Telarc and the instrumental jazz and world music label Heads Up. Concord already owned many formerly independent labels such as Peak, Playboy Jazz, Stretch, and Concord Picante; in 2004, it acquired Fantasy Records, which encompassed Milestone, Pablo, Prestige/New Jazz, Riverside/Jazzland, Stax/Volt/Enterprise, Specialty, Takoma, and others.

The Music Industry's Explosive Decompression

This time last year the music industry was ready to celebrate. Compact disc sales were up for the first time in years, peer-to-peer file-sharing networks were reeling from lawsuits, ringtone sales were proving unexpectedly profitable, and legitimate (paid-for, that is) downloads were rising. But this year, Jim Urie, president of Universal Music Group, told The Wall Street Journal that Christmas 2005 was "a bleak holiday season at the end of a bleak year."

Closing the Analog Hole

On December 16, Congressmen James Sensenbrenner (R-WI) and John Conyers (D-MI) introduced HR">http://static.publicknowledge.org/pdf/HR-4569-DTCSA-Analog-Hole.pdf">HR 4569, a bill "to require certain analog conversion devices to preserve digital content security measures"—in other words, to mandate that electronic devices and software manufactured after a yet-to-be-specified date respond to a copy protection system or watermark embedded in a video signal and pass that along when converting the signal to analog or vice versa. It also mandates copy protection for analog signals. This is referred to as "plugging the analog hole," since analog signals, even those converted from protected high-definition digital sources, are currently "in the clear" or open for copying. (Standard-definition signals can be protected by systems like Macrovision, but no such protection exists for high-definition signals.)

Some Discs Are More Super Than Others

Monster Cable has begun shipping a new series of "SuperDiscs"—specially remastered, limited edition CD/DVD combinations and special release DVDs—designed to excite audio consumers about high-quality multichannel music possibilities.

Magnatune Offers High-Quality Downloads

In this age of the major record labels maximizing music profits at all costs, even if it involves installing spyware on consumers' computers, www.Magnatune.comhttp://www.magnatune.com">www.Magnatune.com; stands apart. The website offers entire albums' worth of music of high quality for download in a choice of formats, from highest-quality MP3 (three times the size of iTunes MP3 files) to CD-quality WAV files. It also gives 50% of the money it collects directly to its artists. Magnatune founder John Buckman, 36, who divides his time between London and Berkeley, chose the site's motto: "Internet Music Without the Guilt: Magnatune, the open music record label."

This Week's Sony DRM News

It has now been over a month since Mark Russinovich broke the story about Sony BMG's DRM software that installed root kit code onto consumers' hard drives—exposing infected computers to malware intrusions and reporting back to Sony's servers via spyware installed without consumers' knowledge or consent. Rather than growing stale, however, the story just keeps going and going as new details come to light almost every day.

Industry Update

Nagra USA: The Kudelski Group has announced that Nagra USA, Inc. has appointed John R. Quick of Tempo Sales & Marketing its national sales manager for the United States. Quick was formerly national sales manager for Aerial Acoustics and has experience in high-end A/V sales, system engineering, project management, and control systems integration.

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