Industry News Roundup

Wiz stores sold: Cablevision Systems has made good on its promise to exit the consumer electronics retail business. On March 6, the Bethpage, NY–based cable giant announced the sale of its 17 remaining Nobody Beats The Wiz stores to GBO Electronics Acquisition LLC in a stock transaction, effective immediately. GBO will assume The Wiz's assets and debt, according to a Cablevision statement.

Cablevision closed 26 Wiz stores last year, and had announced recently that it would close or sell the remainder. The Wiz had a high profile in the New York metro area throughout the 1980s and early 1990s, but declined into bankruptcy in the late '90s. Cablevision acquired the chain in 1998 for $80 million and in the ensuing years lost hundreds of millions attempting to find the right formula to revive it. GBO made no statement about its plans for the stores.

Onkyo Corporation of Japan goes public: On February 25, the electronics manufacturer announced an initial public offering of shares in the company, to be sold on Japan's over-the-counter exchange. "This has been achieved through the continued support and patronage that all of you have brought us," stated CEO Naoto Otsuki. "As a leading producer, we have continuously refined analog and state-of-the-art digital technology through the development of unique components."

Onkyo built its reputation on great audio products, but its future depends on embracing the convergence of audio and video, Otsuki implied. "Now, the trend is 'pictures and sound,' that is to say a continuing age of enjoyable 'sight and sound' as a whole," he stated. "Onkyo has unveiled a company logo, which features 'Imaginative Sight & Sound,' a concept meaning superior visual management and sound reproduction technology—the foundation of which has made Onkyo a leader in home theater and positioned on the cutting edge of home network technology. This company will continue to keep a high brand image brought about through refined analog and state-of-the-art digital technology and a rigid adherence to bringing you the most reliable products today."

Dotmusic debuts: On March 1, British Telecommunications launched Dotmusic on Demand, the first Internet service in Europe to offer "unlimited music downloads backed by the major record labels." Similar to US subscription music services Pressplay and MusicNet, Dotmusic will offer approximately 150,000 tracks licensed from BMG Entertainment, EMI Recorded Music, Warner Music Group, and Universal Music Group. Subscription fees vary from £4.99 ($7.99) to £9.99 ($16) per month; individual tracks can be purchased for £0.99–£1.49 ($1.58–$2.38) each. Prices for the service should decline in the coming months, according to Peter Jamieson, executive chairman of the British Phonographic Industry (BPI), which endorsed Dotmusic as "a compelling legal alternative" to illegal downloads.

Dotmusic runs Microsoft's Windows Media digital rights management system, and music downloaded to a computer's hard drive will "expire" when a subscription is ended. For additional fees during the subscription period, however, consumers may elect to save tracks on CD-Rs or on portable players. The service is negotiating with Sony Music to make its tracks available for subscribers.

Broadway goes dark: Venues in Manhattan's fabled theater district were closed after musicians went on strike Friday, March 7. Members of the American Federation of Musicians (AFM) Local 802 walked out after failing to reach an agreement with the League of American Theatres and Producers (LATP). Actors and stagehands joined the picket lines in support of the strike.

At issue is a move by producers to reduce the minimum size of orchestras in the theaters, and concern over the increasing use of prerecorded music. Although theater ticket prices are at an all-time high, producers are hoping to further fatten their bottom lines by cutting the number of musicians in Broadway shows.

Producers had threatened to begin using recordings if musicians walked out, but were stopped cold when 652 union actors joined the strike. "Our members have made it clear that they do not wish to perform to virtual orchestras," Patrick Quinn, president of Actors' Equity Association told the New York Times.

Base salary for union musicians on Broadway is $1350 per week, according to the Times. Producers have complained that many productions do not require 26-member orchestras, and that union contracts force them to pay musicians who sit through shows without playing one note. Theater owners want to cut the orchestras to 14 members. Union officials said they would accept cutting the orchestras by six players, but no more.

Performers and fans alike told reporters that live music is a big part of the appeal of the theater. "Otherwise, you could just listen to this stuff at home," said theatergoer Julia Kim.

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