News

On May 10, members of several pro audio Internet bulletin boards read the following post from Gary Margolis: "It is with great sadness that I inform you that John Eargle, one of the finest audio engineers and teachers it's been my privilege to know, has passed away.

On May 16, Amazon.com announced that it would launch an online digital music store "later this year" offering "millions of songs in the DRM-free MP3 format from more than 12,000 record labels." EMI, which recently announced that it would partner with the iTunes Media Store to release premium DRM-free MP3 downloads there, "is the latest addition to the store." Amazon claims that every song and album in the Amazon.com digital music store will be available exclusively as unfettered MP3 files.

On May 10, Tweeter Home Entertainment Group announced that it has insufficient working capital to cover its long- and short-term costs and may have to consider filing for Chapter 11. The immediate cause of the shortfall is the cost of closing 49 stores and two distribution centers. This Week in Consumer Electronics reported specifically that lump sum payments to lease-holding landlords was a contributory factor.

On May 8, Harvey Electronics, with 9 stores in New York, New Jersey, and Connecticut, announced that it would acquire the Myer-Emco chain's 10 stores in Washington and Maryland. Both companies are consistently ranked among the top "hybrid" retail operations, meaning they have retail locations and emphasize custom A/V installation services. The new company will be called Harvey Electronics, but tri-state area stores will continue to be called Harvey and DC area stores will continue to be identified as Myer-Emco.

John Mitchell, an outside counsel for the National Association of Recording Merchandisers (NARM), warns that Florida and Utah have passed second-hand goods legislation (familiarly known as "pawn-shop laws") that could make the buying and selling of used CDs extremely unprofitable for stores and inconvenient for consumers trying to unload music they no longer wish to own.

Internet radio streams have received a reprieve from the US Copyright Review Board (CRB) decision to restructure">http://stereophile.com/news/042307net/">restructure the royalty fees for the format. In March, the CRB established fees, effective retroactively to the beginning of 2006, that would be ramped up each year through 2010, with a cost of 0.08¢ per performance (per listener) in 2006, going up to 0.11¢ in 2007; 0.14¢ in 2008; 0.18¢ in 2009; and 0.19¢ in 2010.

B&W Group North America (Equity) has announced that Doug Henderson will assume the position of vice president of sales and marketing as of April 30. Henderson has been a principal of Audtek Associates for more than 20 years. "I'm excited about this move," Henderson told Stereophile. "At Audtek, we specialized in brand building, and we accomplished a lot with some very good companies. With B&W Group, I have the opportunity to use those skills with some of the finest equipment available today—and I have a great independent sales force to work with. It's an unrivaled opportunity."