$5.95 (U.S.), $6.95 (CAN.), £4.95 (U.K.), Y2,500 (JAPAN) IIII111II1 II I 1I1II,1IIII 1I,1II1J11 III 111IJ1IInIII #BXNCCVR 3-DIGIT 908 #90807GEE374EM002# BLBD 779 A06 B0128 001 033002 2 MONTY GREENLY 3740 ELM AVE # A LONG BEACH CA 90807 -3402 THE INTERNATIONAL NEWSWEEKLY OF MUSIC, VIDEO, AND HOME ENTERTAINMENT APRIL 14, 2001 COMMENTAR Y SENATE NEARING TACKLES MUSICNET PROPOSAL RAISES How To Revive INTERNET MUSIC ISSUES QUESTIONS OF FAIRNESS BY BILL HOLLAND The Senate hearing focused Singles Market BY FRANK SAXE goes into the label's pockets. WASHINGTON, D.C.-Of the many mainly on the issues of licensing NEW YORK-While the music in- Streaming media developer Real- issues presented by the 14- witness product from labels and music pub- BY MICHAEL ELLIS dustry was busy touting its new Networks is teaming with Warner panel at the Senate Judiciary Com- lishers, but no lawmakers hinted at The collapse of the U.S. sin- MusicNet digital download Music Group (WMG), mittee hearing April 3 to examine the legislation to help solve the many gles market-down more than initiative, critics were call- Inapster BMG Entertainment, growing pains marketplace 40% this year so far -is terri- ing into question the team- and the EMI Group to and problematic problems. In ble for the U.S. record indus- ing of three -fifths of the create the online sub- implications of fact, commit- try. The cause of the decline is music business into a sin- scription music service, online music, tee chairman not a lack of interest among gle entity that may one which is set to bow this lawmakers Sen. Orrin G. U.S. consumers in the single day encompass nearly PlPlu fall. Under the agree- reacted most Hatch, R- format: The cause is simply every sound recording Foc uses ment, RealNetworks responsively to HENLEY HATCH Utah, said he that U.S. labels are not releas- ever made. Their fear is On E urope will own a 40% stake, the problems facing artists in the dig- would like to see growth of Internet ing commercial singles. Only that this monstrous entity Pa Ilea while EMI, BMG parent ital era -and demands by them that music continue "without the al- five of the top 20 singles on may shut out other Web Bertelsmann, and WMG they must be part of future negotia- mighty hand of government." last issue's Hot 100 were avail- initiatives and artists, while at the parent AOL Time Warner will each tions between the industry and Inter- Hatch told Billboard afterward able in the formats that same time dramatically limiting con- own a 20% stake in MusicNet, net businesses and be fairly compen- that he also plans to call for non - (Continued on page 84) sumers' choices as a greater share of which will operate as a stand -alone, sated for their creative work. (Continued on page 77) the profits from their CD purchases (Continued on page 7.5) Issues Remain As Miami AOL Time Warner Denies Wbìskeytown On lost Hìgbway lands latin Grammys BY WES ORSHOSKI coincided with the unfolding of the Plans for Video Network BY LEILA COBO "Ugh," Whiskeytown's Mike Universal /PolyGram merger, BY CARLA HAY MIAMI-The official announcement of Miami as host of Daly mutters, as he begins to de- which eventually caused the clo- NEW YORK -If AOL Time Warner ever launches a the second Latin Grammy Awards ceremony -to take scribe the two -year delay in the sure of the band's then label, Out- music video network to compete with Viacom's MTV Net- place Sept. 12 at Miami's AmericanAirlines Arena- solid- release of the alt- country band's post, and complicated the highly works, it would be the first U.S. music video network to ifies the city's standing as the epicenter of Latin music. It third full -length album, Pneu- anticipated release of Pneumonia. share the same parent with several major record labels. also sets in motion plans to make the Latin Grammys a monia. "It was The Mer- But such a channel should not encounter conflict-of-inter- traveling event. like waiting in cury Nash- est problems with federal regulating agencies, according Yet whether future editions of the a really long ville imprint to the Federal Com- ceremony will take place outside the line at the Lost High- munications Com- U.S. in other Latin countries is still bank. No, not way issues mission (FCC). AOL Time Warner very much in the air. "We have a chal- even the bank, Pneumonia Reports have sur- lenge, because I'm not willing to do this the DMV." May 22, put- faced that the New York -based AOL Time Warner is show at a reduced budget," says Mi- Daly ex- ting an end to considering plans to launch a music channel as early as chael Greene, president /CEO of the National Academy of plains that he DALY A DAMS CARY this exasper- next year (Billboard, April 7). AOL Time Warner owns Recording Arts and Sciences (NARAS) and the Latin and his fellow Whiskeytown prin- ating period for the band -a period several labels, including Warner Bros., Reprise, Academy of Recording Arts and Sciences (LARAS) -the cipals -Ryan Adams and Caitlin that Daly says was worsened by the Atlantic, and Elektra. latter of which staged the first Latin Grammys in Los Cary -had an unforeseeable fact that the at- times -beleaguered FCC Chairman Michael Powell tells Billboard that if Angeles last year. brush with bad timing in spring group was in such good spirits while AOL Time Warner were to have a new music TV net- "If we were to try to take it outside the U.S.," Greene 1999, when they emerged from a recording Pneumonia, perhaps its work, "it shouldn't present a problem if they don't have says, "we'd need a media partner that would have the same Woodstock, N.Y., studio with the best album yet. a monopoly on the market and don't exclude [competing financial commitment [as current media partner CBS]." songs that would become Pneu- "It was such a great process record companies]." CBS, which has held the general -market Grammy monia. The record's completion (Continued on page 74) The new channel, which some have .aid would be (Coati naed on page 78) (Coo ,,,,,,d on page 78) SOUND OF THE CITIES ACOUSTIC SOUL iriffi(ilr IN- STORES NOW! LLL U LUI,. 1 A BILLBOARD SPOTLIGHT: PAGE 21 . atv`I EXECUTIVE PRODUCER: KEDAR MASSENBURG ACOUSTIC SOUL INDIA.ARIE HAS TAKEN EVERYONE BY STORM AND CAPTURED THE HEARTS OF MILLIONS! $5.95 US $6.95 CANADA Her Debut Album "SHE'S THE FEMALE SHAKESPEARE OF OUR TIME" 5> -JOE -JIVE RECORDING ARTIST featuring the Hit Singles "LOVE HER GROENY, SOULFUL SOUNDS - SHEDS AMAZING AND REFRESHING -MW "Video" and "Brown Skin" "A GENTLE GENIUS LIVES IN THE MIND, VOICE AND HANDS OF THIS WOMAN...SO GOOD" -STEVIE WONDFF' i o 74808 02 52 7 ADVERTISEMENT www.americanradiohistory.com "Bob Dylan's first piece of music since Time Out Of Mind, his Grammy winning 1997 return to form. And the good news is that the introspective, roots -rcck track, titled Things Have Changed, [from the movie, Wonder Boys] is so strong that it would have been one of the three or four most commanding tunes on that album... the song is filled with the provocative, pLzzle -like declarations that have characterized his most me inorable work." - Robert Hilburn, Los Angeles Times We congratulate Bob Dylan on his Academy Award and Golden Globe for Things Have Changed, and on a body of work that remains forever young With loge and respect from your Colf.rnbia Records family. www.bobciylan.corr www.columbiareords.corr SC NY MUSIC SC UNDTRAX "Columbia° and «. leg. U.S. Pat. Things Have Changed & Tm. Olt. Mara Registrada., Available on both albums. © 2001 Sony Music Entelainment Inc. www.americanradiohistory.com Billboard Clubs Scale Back Freebies, Employees BY ED CHRISTMAN "we were moving to a business where ber of free CDs to new members and Editor in Chief: TIMOTHY WHITE EDITORIAL NEW YORK -After negotiations on two -thirds of CDs were free and one -third existing members by 25 millions, Flan- Executive Editor: BRADLEY BAMBARGER Managing Editor: DON JEFFREY Director of Special Issues: Gene Sculatti; Dalet Brady, Associate Director; merging the two major record clubs were sold," he says. "Now, we are ders says. Katy Kroll, Assistant Editor; Marin Jorgensen, Special Issues Coordinator ended, Columbia House and BMG Direct approaching a 50/50 split." He adds that he would like to reduce Bureau Chiefs: Leila Cobo (Caribbean and Latin America), Bill Holland (Washington), Melinda Newman (L.A.), Phyllis Stark (Nashville) have downsized and restructured in order In an attempt to increase revenue and free CD distribution further. But that Art Director: Jeff Nisbet; Assistant: Raymond Carlson Associate Editor: Wayne Hoffman to maintain profitability. rationalize the opening of the Colorado depends on the two clubs' front -end Copy Chief: Bruce Janicke Copy Editor: Andrew Boorstyn On April 3, Columbia House said it City facility, which was built in the mid - offers, which historically have been the Senior Editor: Ed Christman, Retail (N.Y.) Senior Writers: Chris Morris (L.A.), Chuck Taylor (N.Y.) would shutter its Bloomington, Ind., ware- '9Os when the record clubs appeared on way in which they compete for new mem- Talent Editor: Larry Flick (N.Y.) house end its Colorado way to becoming a $2 billion annual bers. Over the past decade, the free album Special Correspondent/Music Publishing Editor: Jim Bessman by the of June and their Rap/R &B Music: Gail Mitchell, Editor (L.A.) City, Colo., offer increased Country/Christian Music: Deborah Evans Price (Nashville) Dance Music: Michael Paoletta, Editor (N.Y.) warehouse by from 8 to 13 Pro Audio: Christopher Walsh, Editor (N.Y.) Digital Entertainment: Eileen Fitzpatrick, Editor (L.A.) the fourth qua- `We cannot make a profit units, before Radio: Frank Saxe, Editor (N.Y.) rter, consoli- dropping back Heatseekers Features/Music Video: Carla Hay, Editor (N.Y.) SMG Marketing & Technology: Brian Garrity, Editor (N.Y.) if we get ripped off by to 12.