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Blackground is not bound by the UMG-Spitzer settlement, which covers only labels owned and operated by UMG, so it would appear that no wrongdoing took place.
I.B. BAD: ELIOT’S WASTELAND AND OTHER SIGNS OF THE APOCALYPSE
In the Matter of Entercom, Blackground and Roadrunner, Whodunit, Who Blew the Whistle and What (If Any) Was the Crime?
LIFE IN THE AGE OF COMPLIANCE: Eliot Spitzer’s settlements with the Big Four changed the rules of engagement and reduced the majors’ longstanding strengths in radio promotion by virtue of the power of the purse. These settlement terms (e.g., spin programs) apply only to the Big Four, not to other labels, nor to managers or agents of acts signed to the majors. Allegations involving ad buys on Entercom stations by UMG-distributed labels Roadrunner and Blackground bring illumination to the new, post-Spitzer business model. UMG has said it didn’t make the buys in question, nor was the company even aware that they had taken place until the allegations were reported last week, after these possible infractions caught the eye of a rival’s compliance department… The Blackground buy, which appears to have spiked airplay for the JoJo single “Too Little, Too Late,” which landed at #2 Pop for the week in question, is believed to have been made by Blackground, and because the label is not bound by the UMG-Spitzer settlement, which covers only labels owned and operated by UMG, it would appear that no wrongdoing took place on the label side of the deal. The other buy, which apparently affected total spins on Nickelback’s #1 single, “Far Away,” was initiated not by Roadrunner but by Nickelback's management firm, Union Entertainment Group, according to sources. These situations suggest that Spitzer’s compliance program can be circumvented... Meanwhile, Entercom continues to insist that its spin programs are within current FCC regulations, as the chain refuses to settle in its ongoing legal face-off with Spitzer. Will an eventual settlement with the AG’s office on other possible infractions see Entercom agreeing to report spin programs to the monitoring services, whose charts are currently being manipulated by these paid-for spins?… In an indication that the crackdown on the Big Four has given power to those outside the mainstream, indie SoBe Entertainment is having remarkable success with the new single from Brooke Hogan, daughter of Hulk, which last week climbed into the Top 25 on the Pop chart. While the single has a lot going for it, having been produced by Scott Storch and featuring Paul Wall, it’s still unusual to see an indie competing at mainstream Pop, where the Big Four have a huge advantage in resources and leverage. SoBe has deep pockets of its own; it was founded by aerospace entrepreneur Cecile Barker, who did extremely well when he sold his former company to Lockheed Martin. Promotion efforts are being handled by the label’s Todd Glassman at Top 40 and outsourced to Mike Whited at Rhythm. With the album debuting in the Top 30 last week on 30k units, many are calling this one of the year’s top promotion efforts. Is SoBe’s incursion onto the majors’ turf a rare occurrence or a preview of things to come in today’s radically morphing landscape?… MOVING & GROOVING: Marty Bandier’s early exit from EMI Music Publishing has inquiring minds wanting to know: Why did he leave his throne while at the top of his game? What went down at EMI HQ?  And why would Bandier take a job at #2 Warner/Chappell when he was heading up #1?… Despite press reports, former Sony Music N.A. chief Don Ienner is believed by individuals close to the situation to be going into business for himself. Expect an announcement of his planned new venture by the end of the year… In the wake of the performance of the Janet Jackson project, Levy and Munns have given Jermaine Dupri a big vote of confidence by bankrolling his new label within EMI and greenlighting a staff of as many as 50. The deal is being hammered out by Dupri’s legal team, headed by John Branca. As Dupri staffs up, look for Virgin chief Jason Flom to put together his own black music team… That ubiquitous new Budweiser spot is practically a music video for Jay-Z’s single "Show Me What You Got." The coup came to be after Anheiser Busch approached the rapper/executive, with whom it had a previous relationship, about undertaking this new partnership. With a virtually unprecedented setup also involving HP spots, NBA promos, MTV exposure and massive multi-format spins, handicappers are taking bets not only on whether the album will break Rascal Flatts’ 2006 first-week record of 714k units, but on whether it will be the first release to break the 1 million plateau since The Eminem Show sold 1.4 million in June 2002…  Names in the Rumor Mill: Johnny Barbis, Merck Mercuriadis, Fred Dannen, Bryan Coleman, Saheli Datta, Gil Aronow, Jeff Rabhan, Dave Glew and Andre Harrell.
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He's lost 25 out of 26, and so tired of winning!
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