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Music Retailers Sue Sony; Virgin Demands Bigger Margin

The inclusion of "hyperlinks" in music CDs that direct music lovers to Sony-affiliated online sales sites has angered the National">http://www.narm.com/">National Association of Recording Merchandisers, a trade organization representing more than 1000 music retailers. NARM has filed suit against Sony">http://www.sonymusic.com/">Sony Music Entertainment and Sony Coporation of America, seeking an injunction against the use of hyperlinks and charging that the practice of including the links in CDs is a violation of the Sherman Antitrust Act. Asking retailers to sell discs with such embedded links is the "equivalent of asking Tower Records to put posters for rival Musicland in their stores," said NARM president Pamela Horovitz.

Music Retailing Changes

A recent study by analysts Customer Growth Partners has found that department stores, specialty retailers, and other chains that fill US shopping malls accounted for just 19% of total retail sales in 2002, down from 38% in 1995. Mall-based retailers accounted for 22% of 2001's retail sales.

Music Sales Continue Slide

Sales of recorded music declined by 9.2% on a monetary basis and 11% on a unit basis worldwide during the first half of 2002, according to recently released figures from the International">http://www.ifpi.org">International Federation of the Phonographic Industry (IFPI). The drop is a continuation of a long slump that began in the mid-1990s, blamed by many music industry executives on the widespread use of CD burners and the popularity of downloading tunes on the Internet. Others acknowledge that increasing competition for consumers' time and money—especially films on DVD—is eating into music industry profits.

Music Seminars in Fort Lauderdale Tomorrow

"Is the Artist in the Room?" is the title of two recorded-music seminars being presented November 14 by Philip O’Hanlon of high-end audio distributor On A Higher Note at Florida dealer Audio Elegance (3435 Galt Ocean Drive, Fort Lauderdale) from 1pm–6pm. Philip will be presenting a live demonstration of high-resolution digital formats vs analog recordings.

Music Soothes the Sutured Breast?

According to a study published by anesthesiologists Chakib Ayoub, Laudi Rizk, Chadi Yaacoub, Dorothy Gaal, and Zeev Kain at the Yale School of Medicine, music reduces intraoperative sedative requirements in patients who received surgical procedures under anesthesia.

Music Vendors to Shun 2007 CES

Telarc, Classic Records, AIX, Cisco Music, Elusive Disc, Reference Recordings, and M•A Recordings have all pulled out of CES 2007, citing new restrictions on sales of merchandise that they feel to be unacceptable. Chesky remains undecided. Music Direct, May Audio, and Acoustic Sounds will exhibit, but will not sell product. Only 5.1 Marketing and Sales is currently committed to selling music.

Music Workers Unite!

Issues surrounding the music industry are heating up, and most stories revolve around the record labels, musicians, congress, consumers, and music pirates. Often lost in the noise is the importance of another major player in the business: the technical folks who make recorded music happen.

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