Music Industry

For those of you who don’t follow Bob’s newsletter, but want a little insight into the music business, read the piece below that Bob published yesterday. I am republishing it here because its just that TRUE! Not only are artists not familiar with how they are getting screwed, fans and general consumers are also feeling the shaft.

Bob Lefsetz was a motivating factor for establishing HSK by giving me reason to breakdown what the bought and paid for media won’t tell you. It’s a longer than normal piece for HSK, but well worth the read.

P.S. Click the “SOPA” image above to learn about how the SOPA act will change the internet landscape for ever. A website could seized without trial, inquiry or even and proof of wrong doing.

“So (the big music chain’s strategy was) not about trying to excite the customer. To extract value from the labels seemed to be the pursuit. In essence, there was a lot of value available because not very much of that value (from the product being sold) was flowing to the artists. (Retailers and labels) would be sitting there on a $10 wholesale (CD) item, and it was basically $9 available to be thieved.

If Best Buy could grab $2 of it on a mark-down, the label could use the rest for car service and fancy meals; I guess that worked for a long time.”

Mike Dreese of Newbury Comics, as told to Larry LeBlanc: http://bit.ly/aQpmuY

The major label business model is theft. Continue Reading…

In a recent interview Mannie Fresh said when Jay Z was president of Def/Jam Records Jay reached out to him and offered a record deal if he could bring fourth a hit single. So guess what? Manny did a song with Lil Wayne and Bryan “Birdman” Williams shut it down.

Here’s what Mannie had to say:

“They said I didn’t get permission. I was like, ‘But Wayne did the track. I got permission from Wayne!?’ And Baby told me, ’Wayne don’t speak for Wayne. I speak for Wayne.’” Continue Reading…

I’ve Seen This Before!

Promoter Diego Hernan De Iraola filed a lawsuit in Florida, against the rapper Daddy Yankee. Know why? Because Diego Hernan De Iraola paid Daddy Yankee $820,000 up front to perform six shows – and guess what? Daddy Yankee backed out two days before the first show.

Here’s what Diego Hernan De Iraola had to say:

“I paid Yankee $820,000 up front for a 6-show tour and Yankee was on board. I later struck a deal with the rapper’s camp to expand the tour to 10 shows and they agreed that Yankee would be paid an additional $480,000. Continue Reading…

Chuck D. of Public Enemy fame has filed a lawsuit against UMG (Universal Music Group). The lawsuit was filed in the US District Court in Northern California on November 2. Check D. is seeking $100 million is damages.

The lawsuit claims that UMG failed to provide a proper accounting for digital royalties, claimed by Chuck D. to be a “substantial amount of money.” Chuck also claims that UMG has failed to properly compensate him for the sales of digital downloads, as well as master ringtones.

The lawsuit is the latest in a series of legal actions filed against UMG group and other labels, since a groundbreaking ruling regarding digital royalty payments in September. That lawsuit was spearheaded by Eminem. Continue Reading…

TV One vs BET Lawsuit

TV One is suing the BET Network. Know why? Because TV One had exclusive television rights for the 2010 Essence Music Festival and TV One is claiming that BET stole their 2010 program mane. Don’t believe me? Ask Cathy Hughes.

Here’s what TV One had to say in the lawsuit:

“Mathew Knowles somehow gained possession of the program then passed it to a third party who then gave it to BET, which aired the program on Centric (which is owned by BET) on June 25, 2011. Continue Reading…