Satellite radio services Sirius and XM both appear headed for a healthy future. The companies both report robust growth in new subscribers. Sweetheart deals with automakers and car rental agencies will expose ever-increasing numbers of consumers to the benefits of commercial-free music.
Major Japanese electronics manufacturers reported mixed results for the quarter ended June 30, with Mitsubishi and Sharp posting sales gains, while Hitachi and JVC did not. Most electronics firms begin their fiscal year on April 1, making June 30 the end of the first quarter.
An old adage has it that "when Sony sneezes, the whole electronics industry catches cold." If that's so, there could be an epidemic brewing. Sony's profits plunged an astounding 98% in the first quarter of its current fiscal year. Thomson, Samsung, and some large retailers also reported big drops.
Bertelsmann may escape the legal wrath of its music industry peers, thanks to a decision rendered by Germany's top court on July 25. The Federal Constitutional Court in Berlin ruled to block delivery of a $17 billion lawsuit brought by other members of the recording industry over Bertelsmann's financial support of Napster. The block is good for at least six months and could be permanently renewed upon full examination of the lawsuit. Bertelsmann has already filed in US federal court in New York to have the suit dismissed.
Will the threat of lawsuits have any effect on the file-sharing phenomenon? The music industry hopes and prays that it will. As of July 19, the Recording Industry Association of America (RIAA) had sought and obtained "at least 871 federal subpoenas against computer users . . . with 75 new subpoenas being approved each day," according to an Associated Press report.
The owners of Spanish website Puretunes.com are the latest to feel the wrath of the Recording Industry Association of America (RIAA) in its campaign to rid the world of unauthorized music. The site's parent company, Sakfield Holding, will defend itself against a lawsuit filed July 3 in the US District Court for the District of Columbia. The accusation: providing illegal downloads.
IPOs are jumping and the Nasdaq is up—some mid-summer economic indicators point toward a recovery, but you wouldn't know it from retail reports. Circuit City, Good Guys, and Harvey Electronics are singing the blues, while discounter Costco is whistling all the way to the bank.