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Wherehouse Buys Blockbuster Music for $115 million

Up from the deep: Torrance, CA-based Wherehouse">http://wherehouse.com/">Wherehouse Entertainment announced last week that it will purchase Blockbuster">http://www.blockbuster.com/music">Blockbuster Music from Viacom Inc. for $115 million. The merged operation will have 598 stores throughout North America, second only to Minnesota-based Musicland. The deal comes at the end of a prolonged slump for the music industry, one that was particularly hard for Blockbuster.

While Consumer Music Sites Struggle, Professional Use Thrives

The buzz about digital audio downloads from the Internet would lead one to think that the only way we'll be buying music in the not-too-distant future is through the Web. But the reality this past holiday season looks quite different. Reuters is running stories saying that there was "No Santa for the Internet Music Industry," and record companies attempting to get online are having a tough time (see related">http://www.stereophile.com/news/10648/">related item). MP3 for Dummies author Andy Rathbone states bluntly: "It [the digital music business] hasn't taken off as much as analysts expected," and EMI Records' Jay Alan Samit laments, "this year, over a billion songs were downloaded. None of our artists got paid."

White Plains Teen Sues Record Companies for Collusion

We reported in 2005 on the Recording Industry Association of America's (RIAA) lawsuit">http://www.stereophile.com/news/082205riaa/">lawsuit against Patricia Santangelo and her suit in response to the trade group's allegations that she had participated in peer-to-peer file sharing. The record companies dropped their legal actions against Ms. Santangelo in December 2006, instead deciding to charge two of her children, Robert (16) and Michelle (20), with downloading songs from Kazaa.

Who Hijacked the Stereophile Website?

If you've visited this website before, you'll notice that we're sporting a new look this week. You'll also find that, in addition to the new sheet metal and colors, there are also plenty of changes under the hood. The Stereophile site was originally launched on December 1, 1997. The old model lasted over three years, but three years is an eternity in Internet time, and we couldn't resist taking all of the comments readers have sent in over the months and sorting through them for fresh ideas.

Who's Your CE Hero?

If you work in the consumer electronics industry and would like to see your personal CE hero rewarded, the Consumer">http://www.ce.org">Consumer Electronics Association (CEA) would like to hear from you. The CEA announced last week that it is seeking nominations from its members, the press and other industry professionals for the 2002 class of inductees into the Consumer Electronics Hall of Fame.

Will a Home Server Be Under Your Christmas Tree?

At CES 2007, Bill Gates announced that Microsoft was developing a Windows&#174">http://www.microsoft.com/windows/products/winfamily/windowshomeserver">…; Home Server, saying, "As computers and digital media become more and more central to family life, we need better ways to organize, share, and protect digital content and information at home. Windows Home Server makes it easy for families to save, protect and access digital memories and experiences, so they can focus on using technology to organize their day-to-day lives, explore their interests, and share their memories with the people they care about."

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