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Australia's Sanity.com Offers Services For Music E-Taìlers BY CHRISTIE ELIEZER uct marketing, and technical sup- files. However, Chaos' CEO Rob alties in five years." SYDNEY -While the local record port -for subsequent sale to the `We need to be Appel insists this is not the case. Chaos' levy idea, initially applauded industry evaluates E- tailer Chaos - public. It is also negotiating part- Appel says, "The `terms and con- by artists and managers, is beginning Music's plan to deliver revenue nership deals with technology realistic about ditions' on our site make it clear that to pick up responses from other sec- from its music search engine to firms and music companies in- illegitimate swapping or transmis- tors. Microsoft Australia has commit- copyright holders volved in downloads. "No one else file sharing over the sion is not authorized and that by ted to provide significant funding (Billboard, Aug. is providing a service like this in clicking on our search button, they toward the plan to cover administra- 26), another lead- Australia at the moment," Outch Internet. Chaos' are entering into a contract with us tive costs involved in the setup of a col- ing online music says. that says they won't do that." lection agency, a role that Appel hopes merchant here Wiredrecords.com has inked a deal proposed levy is a Appel says a breach of this would will be taken on by the Australasian has unveiled plans with the Rupert Murdoch -owned great start' result in a bar of the user, although Performing Rights Assn. (APRA) and to increase the Festival Mushroom Records to digi- he admits users can re -enter by us- the Australasian Mechanical Copy- volume of digital tally administer its catalog, estimat- - FRANK ARRIGO - ing different names. Chaos has al- right Owner Society (AMCOS). downloads. ed to be the largest single catalog of ready started to put aside its share According to Frank Arrigo, busi- CAROSA ChaosMusic's Australian releases. It is also negoti- of revenue from its search engine. ness development manager for Win- recently an- ating similar digital deals with three owners 15% of advertising revenue Given the size of the online market, dows Media technologies at Micro- nounced plan to introduce a 15% other record companies, says Outch. sourced from FreeTracks. When says Appel, the sum is currently soft, "What attracted me wasn't the levy from online advertising from Sanity says consumer pricing for originally announced by Chaos, the only "a couple of hundred bucks a 15% levy. It was the idea of putting its search engine FreeTracks to downloads will vary but should be plan was viewed by some sectors in month." He adds, however, that "if something back to the artist, in par- pay featured artists is finding between $0.99 Australian (55 cents) the music industry here as condon- every Web site contributed, this ticular to new artists. This is the wider support and $4.99 Australian ($2.80) per ing the Napster -like swapping of could be as substantial as radio roy- same reason we're contributing to a Down Under. In track. Sanity.com's 50/50 partner in fund [along with telecommunications the meantime, the venture is ehyou.com, a digital company Telstra] to collect royalties Sanity.com -the media company that owns a number for music played by [online broad- online division of of Web sites. including music service caster] Digital One's Radio Raw, market -leading provider MP3.com.au and E -com- which plays only unsigned artists." music retail chain merce site sprint.com.au. Arrigo says there are a number of Sanity -has Ehyou.com is contributing business models that could be used ARRIGO announced the $700,000 Australian ($390,000) and to compensate copyright owners, launch of a stand- technical expertise to the venture. adding that a $10 -a -month subscrip- alone company, wiredrecords.com, It is also licensing to wired tion fee could be as effective as the to supply other local music E -tail- records.com its digital rights man- levy. "Is 15% the right amount ?" ers with digitized music and back - agement technology, which it Arrigo asks. "I don't know-maybe room services. claims protects online delivery of there should have been a discussion According to music. Using Microsoft's Windows with the industry first. But we need sanity.com con- Media audio format, the service to be realistic about file sharing over tent director Ken allows E- tailers to restrict the the Internet. Chaos' proposed levy Outch, wired number of times tracks can be is a great start." records.com will played and copied. "Wiredrecords. Gavin Ward, chairman of the Aus- launch by Decem- corn is well -positioned to build a tralian Music Retailers Assn. ber. For a fee, it substantial share of a rapidly You Got The Silver. London -based concert bookers the Agency celebrated (AMRA) agrees, saying, "A com- will supply Inter- growing market," says ehyou.com when managing director Neil Warnock presented long- standing personal assis- mercial model is required to cover tant Claire Stone and company accountant Jan Sikorski with multi -disc awards APPEL net music re- CEO Domenic Carosa. the free music on the Internet, and The received tailers a variety The wiredrecords.com strategy marking 25 years service apiece with the firm. pair also awards or a commercial return to copyright of digitized music and back -room was unveiled as the local industry accolades from Pink Floyd, Status Quo, and Rush, as well as from a string of owners is an essential part of any services-including digital music continued reacting to ChaosMusic's leading European concert promoters. Shown, from left, are Sikorski, Warnock, such model." licenses, royalty accounting, prod- plan to return to music copyright and Stone. Andrew Mantle, E- commerce manager for HMV Online, says, "In principle, HMV Australia supports any initiatives that recognize un- ARIA NOMS FAVOR NEW ACTS signed artists' efforts. The sharing (Continued from preceding page) of advertising revenues to assist in Says , guitarist with Adds Phil Mortlock, managing nominees are from Melbourne, reflect- Best new artist (single): Madison this initiative offers artists a viable , "It's astounding how director of indie label Origin Record- ing the power of that city's strong col- Avenue (Vicious Grooves /EMI), source of revenue from dotcom fast things have moved for us. Just a ings, "I'm not anti-pop in any way, but lege radio stations, which unearth and (Transistor/BMG), operations." year ago we played our debut single what is not reflected in this are the support new local acts. 28 Days (Sputnik /FMR), Augie However, both AMCOS and the at the awards; now we're up for all instant -hit pop acts that some record The nominees in other key cate- March (Ra /BMG), Lo -Tel (Mur- Australian Record Industry Assn. these nominations. There are some companies spent a fortune on earlier gories are as follows: mur/Sony). (ARIA) remain cautious about the great new bands who've been nomi- this year. Acts that were voted for, like of the year: , Highest -selling Australian plan. "We certainly have concerns nated with us, but I think we've got a Alex Lloyd, , Diana Ah "Black The Sun" (EMI); David Bridie, album: Vanessa Amorosi, "The with some elements of the proposal, strong chance going in." Naid, and David Bridie, are the result "Act Of Free Choice" (EMI); Killing Power" (Transistor/BMG); Savage but I would hope we can find a mid- Other new acts showing strongly of long -term development, not a quick Heidi, "Reflector" (Wah Wah/Road- Garden, "Affirmation" (Roadshow); dle ground," says Richard Mallett, include Sputnik/FMR's 28 Days with way to meet budgets." show/Warner); , `Affir- Killing Heidi, "Reflector" (Wah AMCOS/APRA licensing manager. Wah /Roadshow three nominations, EMI country Among the bigger surprises in the mation" (Roadshow); Shihad, "The /Warner); Bardot, APRA is currently surveying its "Bardot" (WEA); , "Imagi- singer with two, and nominations was the hardcore act General Electric" (Warner Music). members for a decision on the Chaos nate" (WEA). Warner Music's New Zealand hard Frenzal Rhomb (Shapile /Shock) being Record of the year (single): 28 proposal; ARIA has made no official Days, "Rip It Up" (Sputnik /FMR); At the announcement of the short - rock band Shihad with two. Among placed in the pop category alongside list, ARIA also presented four comment. Appel agrees that ap- established acts, previous big winner Minogue, Amorosi, Savage Garden, Kasey Chambers, "The Captain" proval from the two associations is Heidi, "Mascara" awards. Best video went to Mark Savage Garden on the and Spiderbait (Grudge/Universal). In (EMI); Killing (Wah essential if the levy plan is to get -riding Wah /Roadshow/Warner); Madison Hartley for two nominated Madison 500,000 -unit local sales of its sopho- the meantime, pop duo Sister 2 Sister international recognition. Avenue, "Don't Call Me Baby" (Vicious Avenue singles, "Who The Hell Are more - in Local industry estimates put the album "Affirmation" (Road (Standard) ended up the best inde- Grooves/EMI); Powderfinger, "Pas- You" and "Don't Call Me Baby" Best show)-received four nominations, and pendent release category alongside senger" (Grudge /Universal). cover art went to contemporary rock Australian online market at 3% of Kylie Minogue (FMR) received two. alternative music acts Ah Naid, Iota Best female artist: Kasey Cham- trio Spiderbait's bassist Janet English the music retail market; Interna- Notes Parisi, "For a [Sputnik/ (MGM), Skulker (MGM), and Stella bers (EMI), Kylie Minogue (FMR), for her work on the band's "Gloken- tional Federation of the Phono- FMR] act like 28 Days, who had a top One Eleven (WOW). Vanessa Amorosi (Transistor/BMG), pop" album. graphic Industry (IFPI) figures for 10 hit without any major airplay, this For the first time, not one of the acts Christine Anu (FMR), Diana Ah Naid The U.K.'s Steve James is producer 1999 put the overall retail value of is indicative -it's definitely a time of nominated in the best group catego- (Origin). of the year (for his work with BMG the Australian market at $1.02 bil- the new breed. The music industry ry- Killing Heidi, Madison Avenue, Best male artist: Alex Lloyd contemporary rock band Oblivia) and lion Australian ($656.3 million). Web here is revitalized and very exciting, Powderfinger, Savage Garden, and (EMI), David Bridie (EMI), dance one of five who tied in the engineer research firm www.consult has fore- and you can bet that in the next few Shihad -comes from Sydney, where acts Endorphin (Columbia /Sony) and category, alongside Brent Clarke, cast that by 2002, 10% of the Aus- years, more and more interesting and most record labels are headquartered. Groove Terminator (Virgin /EMI), Doug Brady, Iva Davies, and Jonathan tralian music market will be ac- diverse acts will be nominated." In fact, the majority of the leading Paul Kelly (EMI). Burnside. counted for by online transactions.

BILLBOARD SEPTEMBER 23. 2000 www.billboard.com 59 www.americanradiohistory.com