Updates from January, 2010 Toggle Comment Threads | Keyboard Shortcuts

  • Nick 9:57 pm on January 19, 2010 Permalink  

    Cleveland Orchestra Faces Budget Issues 

    From MC Hammer to Mick Fleetwood, pop stars are infamous for ostentatious lifestyles that force them into bankruptcy. Apparently unhappy with playing second fiddle to rockers and rappers, classical musicians are driving themselves deeply into debt. In November, the Honolulu Symphony Orchestra declared bankruptcy, and more orchestras may follow. The Cleveland Orchestra is in difficult economic times and has reportedly run deficits in the area of $4million dollars for the past seven years. The New York Times has an interesting piece about Cleveland’s orchestra, and the situation of US orchestras in general. Check it out!

     
  • Nick 9:53 pm on January 19, 2010 Permalink  

    Guvera Raises $20 Million 

    Even before the recession started in 2007, the recorded music industry was in dire straits. But an unfavorable economy hasn’t stopped entrepreneurs from starting legal, ad-supported streaming or downloading sites. A new such site, Guvera, offers streaming and downloading in exchange for a subscription service and recently raised over $20million from investors. Guvera reportedly has the support of Universal and EMI, although the major labels have been fickle partners to similar companies such as Qtrax. Guvera’s emergence comes at an opportune time as the pay-per-download system appears to be reaching its ceiling. Digital sales growth decreased from $270million in 2008 to $90million in 2009 and a new model with greater long term sustainability is sorely needed.   Cloud based streaming sites or subscription/ad supported downloading seem to be the future but which site and model will come out on top is still far from clear. Meanwhile online retail mega giant iTunes is reportedly considering a massive system revamp– presumably to cloud streaming. Guvera has entered a fiercely competitive niche, but thus far things have gone well for the start-up.

     
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