Topic: The Battle in the Air:The Media Base /Soundscan war picks up
- Jan 4, 2006 05:50pm by NRG - livin the art that is life !
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The Battle In The Air: The Media Base- Soundscan War Picks Up.
Find Out What Sides The Labels Are Choosing.:
http://www.streetandindustry.com/PremiumArticles.phtml?cat=12
By StreetandIndustry.com
One of the biggest developments making the rounds of late is the news that Nielsen's BDS service is falling out of favor with the major record labels. Specifically Universal Music Group and the Warner Music Group. Both of the majors have 'officially' switched to the use of Soundscan's competitor, Mediabase 24/7 – a chart ranking service that ranks the popularity of songs based on radio airplay on over 1,600 radio stations in the top 140 markets in the United States and Canada. Mediabase 24/7 is owned by Clear Channel Radio's Premiere Radio Networks, overseen by its Music Information Systems. On August 11, 2005, Mediabase and the Universal Music Group (UMG) renewed their long-term agreement.
So the news, that yet another major record label, The Warner Music Group, had dropped Soundscan and BDS has industry professionals buzzing. StreetandIndustry.com has learned that Warner Music Group (WMG) Chairman and CEO, Lyor Cohen, sent an e-mail to company employees stating that from now on, employees were to no longer use BDS or Soundscan and were to exclusively rely upon Mediabase to track airplay of records. A similar e-mail was also sent out at Universal Music Group (UMG) where label A & Rs were asked to discontinue using the service.
For some time WMG has been using the BDS service for a 'free trial', and, Street and Industry has learned that BDS attempted to negotiate a financial agreement for its services that Mr. Cohen found unacceptable. He did not want to pay and Nielsen would not budge and the decision was made that banned the WMG staff from accessing BDS or Soundscan. Only Mediabase is now used. However there has been no official announcement by Premiere Radio Networks of a long-term deal with Warner Music Group similar to that which was made by the company in September, regarding its relationship with Universal Music Group.
The two decisions at the major record labels have industry insiders buzzing and speculation abounds on a variety of fronts. One theory being considered by some is that the recent 'payola' investigation led by New York Attorney General Elliot Spitzer involved the cooperation of BDS and Soundscan and the record labels are bitter and seeking to retaliate at the two services. Another theory being offered and discussed by some is that with Mediabase charging half the price, BDS and Soundscan have bid themselves out of the marketplace, and that Mediabase's arrangements with UMG and WMG involve very little compensation with Mediabase's only desires to take market share away from its competitor.
The scenario involves an interesting clash of power with – on one side - Nielsen Entertainment's BDS and Soundscan serving as the exclusive provider of data on airplay and record sales to influential music industry magazine, Billboard. Billboard and Nielsen Entertainment are both owned by global information and media company, VNU. On the other side is Clear Channel, the owner of Mediabase, radio stations, outdoor displays, live entertainment events and venues, and television station companies.
