From BusinessWeek: "...The world's most powerful music executive aims to join forces with other record companies to launch an industry-owned subscription service.

"BusinessWeek has learned that [Universal Music chief Dough Morris] has already enlisted Sony BMG Music Entertainment as a potential partner and is talking to Warner Music Group. Together the three would control about 75% of the music sold in the U.S... The service... will be called Total Music...

"...[Music] companies have been here before. A few years ago they launched services with the aim of defeating Napster-style file-sharing — and failed miserably. And let's not forget that existing subscription services have signed up only a few million people, vs. hundreds of millions of iTunes software downloads.

"While the details are in flux, insiders say Morris & Co. have an intriguing business model: get hardware makers or cell carriers to absorb the cost of a roughly $5-per-month subscription fee so consumers get a device with all-you-can-eat music that's essentially free. Music companies would collect the subscription fee, while hardware makers theoretically would move many more players...

"With the Total Music service, Morris and his allies are trying to hit reset on how digital music is consumed. In essence, Morris & Co. are telling consumers that music is a utility to which they are entitled, like water or gas. Buy one of the Total Music devices, and you've got it all.

"...After all, the Total Music subscriber pays only for the device — and never shells out a penny for the music. 'You know that it's there, and it costs something,' says one tech company executive who has seen Morris' presentation. 'But you never write a check for it.'

"The big question is whether the makers of music players and phones can charge enough to cover the cost of baking in the subscription. Under one scenario industry insiders figure the cost per player would amount to about $90."

Read the entire article at Business Week online.

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x The struggle to move subscription services into the mainstream has been well-documented. And the major labels' attempt to "innovate" in the digital delivery arena hasn't exactly been a hotbed of success. So why is this any different? Well, for one, the labels are focusing on mobile and wireless content delivery. They must know that their consumers are clamoring for content when and where the fancy strikes them (crediting the idea of "music as a utility" to major labels' thinking is, in reality, just evidence of coming to terms with their consumers' behavior over the last 10 years.) While the tech may not be mainstream today, every indication says that's just a matter of time. Secondly, as Mark Ramsey points out on his Hear 2.0 blog, what Morris is basically proposing is a major-label entry into the radio world: "So what do you call a wide selection of music, wirelessly delivered and mobile, that offers all your favorite songs as well as the chance to discover new ones - and it's all free? You call it 'radio.'" With major-label content dominating FM airwaves, and some in the label world claiming that FM radio play no longer benefits artists, it will be interesting to watch just how far in radio's image this Total Music project proceeds. -- DM x

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From Online Media Daily: "Google recently launched a promotion for its Audio Ads product that will give advertisers a $2,000 credit toward future radio spots if they spend at least $1,000 on a single campaign.

"While Google is claiming success for some of its advertisers, analysts suggest the promotion is a sign that attempts to push into the offline space are faltering...

"'This is but the latest piece of evidence that, while Google may be golden in online advertising, its forays into off-line advertising have yet to catch on,' blogged Erick Schonfeld on TechCrunch, adding: 'Google must be having a real hard time selling those radio ads to have to resort to such a blatant attempt to buy market share,'...

"'This move was designed to get the very small advertisers that are currently using search to try the audio ads,' said Natalie Swed Stone, U.S. director of national radio, OMD...

"When it comes to the future of radio buying in the online space, Stone was adamant that there was no fear or resentment on the traditional end.

Read the entire article at Online Media Daily.

From Radio Ink: "The HD Digital Radio Alliance... has renewed its charter and committed to an additional $230 million in marketing funds for 2008. That brings the group's total financial commitment to $680 million...

"With the new charter, the alliance has revised its two-year ad moratorium on HD subchannels to allow 'name-in-title' sponsorships and a limited number of hourly sponsor mentions. Additionally, stations belonging to alliance companies will no longer be required to submit their proposed subchannel formats to the alliance for review."

Read the entire article at Radio Ink.

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