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$6.95 (U.S.), $8.95 (CAN.), £5.50 (U.K.), 8.95 (EUROPE), Y2,500 (JAPAN) 11.1..11...1..1.11...1..1..11,.1..111 I 11...11 #BXNCCVR 3 -DIGIT 908 #90807GEE374EM002# BLBD 832 A06 B0120 001 MAR 04 2 MONTY GREENLY 3740 ELM AVE # A LONG BEACH CA 90807 -3402 APRIL 27, 2002 THE INTERNATIONAL NEWSWEEKLY OF MUSIC, VIDEO, AND HOME ENTERTAINMENT New Players Emerge CanTop Media/Music In Unstable Touring Biz Marriages Be Saved? BY MATTHEW BENZ NEW YORK has happened to Vivendi Uni- BY RAY WADDELL The status of HOB and CCE are only -What AOL Time Warner? Heralded since their NASHVILLE -The aftershocks from two closely watched developments of versal and for media companies promoter consolidation in the late many in these turbulent times for the conception as new models - music 1990s rumble on in a wave of lawsuits, concert industry. As CCE's non -corn- able to push their government scrutiny, pete clauses with ac- and other entertain- VIVENDI and ment offerings across all jockeying for posi- quired promoters UNIVERSAL tions, corporate shake- former executives run sorts of "platforms," ups, and, thankfully for their courses, some from such traditional new, Internet -based ones as many, the emergence well -known names are ones as TV to such have seen their stocks of some new players. bound to resurface. hand -held computers -they in weeks. The instability of the Among the first is for- hit record lows recent after Vivendi completed its business creates chal- mer SFX /CCE VP In December 2000, Canal Plus when it Mitch Slater, whose acquisition of French pay -TV company lenges, even assets, comes to reporting acquisition of former and Seagram's Universal entertainment U.S -listed American Deposi- news about it. One day rival Metropolitan En- Vivendi Universal's ng at $65. Now, they are after Clear Channel tertainment raised tary Shares began trad eyebrows throughout around $35. (Its Paris- listed shares have been the Entertainment (CCE) worst performer this music division CEO Iry the industry (Bill- year in the CAC -40 Zuckerman was inter- board, March 30). stock index.) When AOL viewed for this story, Additionally, ousted AUL Time \\1rer Time Warner officially word came that he and Metropolitan head came into being in Jan- co -CEO Rodney Ecker- John Scher has stated shares were around $45. Now, man would be vacating his intentions to re- uary 2001, the company's their positions (Bill- enter the concert they are near $21. is itself not a serious problem, Pet Shop Boys Find board Bulletin, April world, despite a non - A low share price signal a change in investor sentiment. 15). Meanwhile, House compete now held by but it does of Enron has made investors wary- of Blues (HOB) Enter- Slater. And AEG upped The collapse On Sanctuary analysts more watchful -of compa- `Release' tainment is apparently the ante with the cre- and Wall Street ation of AEG Live and nies that lack transparency. Because they are the BY MICHAEL PAOLETTA still on the block, with the appointment of products of recent mergers, year- over -year per - NEW YORK-Neil Tennant and Chris Lowe, more CCE, Anschutz Enter- its (Continued on page 78) commonly known as Pet Shop Boys, recorded tainment Group (AEG), Randy Phillips as their eighth studio album, Release, at the former's and a group headed by president and will pro- in the north of former Ticketmaster duce what's sure to be home studio, located in Durham SLATER England. According to Tennant, "It's the kind of guru Fred Rosen all a hugely successful place where you're not in the middle of some having tendered offers. Eagles tour of second- summer. kind of scene." Sources say CCE is close to making a ary markets this behind -the -scenes In such back -to- basics surroundings free of outside deal with HOB with an offer of $270 Amid all this business is influences, Lowe declared that he didn't want to make million in cash and debt assumption, volatility, the touring in the early going of 2002. a dance record, Tennant recalls. "Chris simply said, but at press time, an announcement struggling (Continued on page 80) had not yet been made, despite pub- For the first quarter, box -office lished reports to the contrary. (Continued on page 77) M OPALINE fi DISH WA L L PRODUCE D BY GREGG WATTFNBE RG sii ìgte $6 95US $ 8 95CAN t`'t nethefirsthit 7> MAJOR MARKET AIRPLAY EVERYWHERE NATIONWIDE TOUR STARTS APRIL 25 SOMEWHERE WWW.DISHWAEL.A.COM WWW.IMMFRGENT.COM IN THE MIDDLE Jmn ' ., na. - 52 8 o 71486 02 nDVf. Pi ISEOi N7 www.americanradiohistory.com soundExchangE"" 1330 CONNECTICUT AVE, NW, SUITE 300, WASHINGTON, DC 20036 P: 202.828.01 20 F: 202.833.21 41 WWW.SOUNDEXCHANGE.COM Board TELL CONGRESS THE TRUTH ABOUT WEBCASTING RATES Ann E. Chaitovitz/AFTRA An Open Letter to the Music Community: Jay L. Cooper, Esq. /RAC Andrea Finkelstein /SONY We are at a historic crossroads in the music industry. An independent arbitration panel recently proposed royalty rates to the Librarian of Congress for the streaming of recordings by webcasters Michael Greene/ RECORDING ACADEMY (including the simulcasting of radio on the Internet). The proposal from this panel was based upon months of testimony from more than 50 witnesses, including artists, record labels, broadcasters and Gary Himelfarb /RAS Records webcasters. While it is the nature of arbitrations that no party gets exactly what it wants (and all Paul Katz/ZOMBA parties are appealing the decision), we at SoundExchange are pleased that artists and record labels RECORD GROUP will soon receive royalties after waiting almost four years. Mimi Kim /BMG Despite the fact that the rate is Thomas F Lee /AFM closer to their proposal, webcasters and simulcasters have launched a campaign to undermine the arbitration process. They are inundating Congress with complaints that they Aimee Mann cannot afford to pay for the music - even though they pay market value for things like bandwidth and Walter F. McDonough, Esq. rent. Some of these complaints are based on confusion. Some are based on misinformation, resulting Alasdair McMullan /EMI in grossly exaggerated projected fees. Others seek to perpetuate the royalty -free status enjoyed by broadcast radio, arguing that artists and labels shouldn't be fairly compensated even when their music Jeanne Oberstar /AFIM is performed by those building businesses on recordings. Michael Ostroff /UMG Perry Resnick /MMF -US It is time for the artists and record labels to be heard. Musicians, vocalists and sound recording copyright owners deserve to be fairly compensated for their creations. Webcasters and simulcasters Paul Robinson/WARNER MUSIC GROUP are not entitled to a free ride or a subsidy. Hilary Rosen/RIAA These royalties are too important not to act. In our first distribution of satellite subscription royalties this past Jay Rosenthal, Esq. /RAC October, over a thousand different artists and many hundreds of different record labels received royalties. David Sanborn Make sure your voice is heard above the din created by webcasters and simulcasters. You need to act NOW. Executive Director For information on how to contact your John L. Simson Congressman and more detailed information on the arbitration panel's recommendations, please visit the SoundExchange website at wvvw.soundexchange.com. Sincerely, John L. Simson Executive Director fr-6('6`- G 114;1. gC- %10 A1/vi\ ?mru QM for David Sanborn www.americanradiohistory.com Brian Keane Shares Ansel Adams' Vision Chance, favor, and the prepared mind. That's how Ansel Adams des- flamenco legend Paco De Lucia, and the group Spyro Gyra-was invit- Billboard cribed the evolution of his nature photography to a plane of poetic excel- ed in 1981 to score his first documentary. It was Against Wind and lence. In his search for the right proportion of humility, vision, and drive Tide: A Cuban Odyssey, a study by filmmakers Jim Burroughs and Editor in Chief: TIMOTHY WHITE with which all artists attempt to achieve an original portrayal of the truth, Suzanne Bauman of the Mariel boat lift. The film earned an Academy EDITORIAL Keane's verve as a musical storyteller was estab- Managing Editor: MICHAEL ELLIS Adams' essential checklist was succinct. Since he was also a trained clas- Award nomination, and Bureau Chiefs: Leila Cobo (Latin, Miami), Bill Holland (Washington, D.C.), realm of sound as well as sight. lished. Between jazz dates during the next six years, he toiled on other Melinda Newman (L.A.), Phyllis Stark (Nashville) sical pianist, his outlook resonates in the Senior Editors: Ed Christman (Retail), Linda Deckard (Venues, Nashville), [any Rick (Talent), "Music is wonderful, but the musical world is bunk -so much petty film projects with Bauman or Burroughs, including her 1987 docu- Wayne Hoffman (News), ChuckTaylor (Features), Ray Waddell (Concerts, Nashville) Senior Writer: Chris Morris (L.A.) doings, so much pose and insincerity and distorted values," Adams mentary Suleyman the Magnificent. Suleyman led to collaborations Special Corespondent/Music Publishing Editor: Jim Bessman Sky (Celestial Harmonies, 1992) Art Director. Jeff Nisbet also observed, by way of explaining his decision in young adulthood among them the classic Beyond the Associate Editors: Lill Pesselnick (Home Video, L.A.), April with Turkish multi -instrumentalist Omar Faruk Tekbilek. Keane also Brian Garrity (Merchants & Marketing /New Media), to pursue photography rather than music as a career. On 23- Carla Hay (Music & Showbiz), Gail Mitchell (R &B, L.A.), Wes Orshoski, two days after the national PBS TV premiere of Ansel Adams: A Doc- began an acclaimed solo career that yielded such admired albums as Michael Paoletta (Dance), Deborah Evans Price (Country/Christian, Nashville), (Blue Note, 1992).