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The Associated Press reported on five upcoming albums this fall in an article posted yesterday, raising new questions about the music industry and the success these albums may enjoy. The big news are the number of comeback albums being released in the next few months, notably from Metallica and Australian band AC/DC. Both albums come after lapses of five years or more from the artists, a time period that has seen major upheaval and change in the industry, and the AP cites reports that both return the bands to their roots.

Nevertheless if Metallica and AC/DC are returning with new material, the music industry is simple not a safe place for anyone involved with it: artists, managers, investors, and vital customers. In fact, both Warner Music Group Corp. (NYSE: WMG) and Sony Corporation (NYSE: SNE), which owns Sony Music Entertainment Inc., have seen declining prices throughout the summer. None of this is any different from the declines the industry has been seeing in recent years, but digital sales and excitement over new albums in the summer might have pointed in the opposite direction.

The AP's projections for other top albums this fall include material from rapper T.I., still reeling from a weapons charge and punishment, and High School Musical 3 from Disney (NYSE: DIS). It is just too hard to suggest if these projections are reliable in an industry currently in flux and continuously declining. However, they are sure to be successful, in particular the next installment of High School Musical, but they will probably all be paled by an unexpected success. If the summer excitement could continue from the festivals and tours into the fall, then these albums could do well, but whether that will improve the industry or improve investors is just too risky to speculate.

The Associated Press reported Monday that popular online communications website Facebook is set for a new upgrade and redesign to allow users to add items on "Walls" more easily, while the "Wall" feature will incorporate functions previously found in "Mini-Feed's." Facebook is currently in heavy competition with News Corp. (NYSE: NWS)'s MySpace networking site as both "vie to become the central hub of online communications" by removing "clutter" and making the sites easier the navigate.

Part of the update comes as users have made less and less drastic changes to their profiles, instead adding single images or changing their statuses. Facebook is also aiming to reduce the size of profiles loaded with various applications that also appear on users "Mini-Feeds" and "Walls". Users will also be able to delete items from those functions, but no new information about online behavior previously unavailable will suddenly appear, according to Facebook developers and executives.

Billboard reported Monday that EMI Group CEO Guy Hands "has informed staff at EMI that the music major is on target to deliver 'significant cost savings' after generating in excess of £100 million ($199 million) in its first quarter." The company, which has seen massive staff cuts this year and falling profits in the wake of Hands' Terra Firma buyout last September, has been rumored to be hedging its future on the success of the recently released Coldplay album, Viva la Vida or Death and All His Friends.

The internal memo acquired by Billboard would seem to indicate otherwise however, instead pointing to earnings in the first quarter of 2008 compared a loss of nearly $90 million in the same quarter of 2007. Revenue in the first quarter rose 61%, while the Coldplay album was released only a month ago, in the second quarter. Hands had gone on record pushing for a "reshaped organizational structure" looking for greater profits and less loss, and with the new memo he appears to have achieved the "accountability" for EMI that he sought when Terra Firma bought the music company last year. The report also comes in the wake of EMI losing a few seasoned hands at the end of June and hiring a new CEO for the music division, Elio Leoni-Sceti, known for his past in household marketing and products.

Just as Apple Inc. (NASDAQ: AAPL) releases its new iPhone 3G to consumers today, the deal for Activision Blizzard, Inc. (NASDAQ: ATVID) has been finalized and rumors emerged that the combined game maker could create a digital music store to service its series of Guitar Hero games and challenge iTunes. The Financial Times reported Thursday that the company has a new service in the works as part of a "natural evolution" of the series and looks at Guitar Hero to become a "credible alternative to iTunes" via a majority ownership by Vivendi, which also owns the Universal Music Group.

The development of an online music store from the makers of Guitar Hero and World of Warcraft would be a profitable development for music publishers and investors, since downloadable content rakes in more money than simply offering music on game discs, according to a follow-up by Billboard on Friday. Part of this is due to continued spin-off games, especially the Guitar Hero franchise which saw Guitar Hero: Aerosmith and Guitar Hero: On Tour released in June. The fourth game in the main series is also due this fall and a Metallica-based game for next year.

Unfortunately, while any new music based digital store might offer a viable and intriguing challenge to Apple's iTunes Store, to date it still remains the industry leader despite previous attempts to dethrone it. No matter how much the music industry and other retailers dislike iTunes and Apple's hold on music and other downloadable media, the company still manages to maintain positive consumer relationships. This was made obvious today by the commotion over the new iPhone, which saw another price drop and technological advance.

Sony Ericsson, a joint venture between Sony Corporation (NYSE: SNE) and Sweden-based Ericsson Telecommunications Co. (NASDAQ: ERIC), announced to Billboard Wednesday that the company would be incorporating AM/FM radio features into selected new devices and phones before the end of the year. Designed for global markets, the R300 Radio and R306 Radio phones will be launched in South America first with hopes that the specific AM capability will spur emerging markets and consumer interests in sporting events and listening to music.

According to Billboard, the new phones resemble transistor radios but are not equipped "to allow users to download tracks from the radio but do have a feature that identifies the song and artist played." Sony Ericsson's marketing VP for South America, Stephan Croix, told the trade paper the devices are part of "a very simple and straightforward concept that will make music more relevant in the mass market," as opposed to more sophisticated technology like Apple Inc. (NASDAQ: AAPL)'s iPhone that merges music capabilities with phone and Internet functions.

Sony Ericsson recently issued a second profit warning for 2008, hoping to recover in the second quarter after falling behind rival South Korea-based LG Electronics in the first quarter. The warning points to declining European sales, which could indicate why the new radio/phone devices are being pushed in South American markets, in addition to the obvious reasons outlined above. The company is also hoping for a massive resurgence in quarter three with the launch of the new Xperia X1 handset in September. The release of the iPhone and how it performs after this week will only add to complications and competition Sony Ericsson may have before the radio/phones are released regionally and later globally.

According to a Billboard report Tuesday morning, Live Nation Inc. (NYSE: LYV) "has entered into a long-term global partnership" with Canadian rock band Nickelback, following other high profile acts U2, Madonna, and Jay-Z. The reported $50-$70 million deal is set to commence after the band finishes its current deal with Road Runner Records, a record label in the Warner Music Group Corp. (NYSE: WMG), and will include three tours and albums with the possibility of a fourth left open. Virtually every aspect of the band's career will be managed and distributed via Live Nation, and the band will begin touring in Live Nation venues as soon as next year.

Reuters further reports that the band has two albums and a greatest hits album left with Road Runner Records, with the band's last album selling 10 million copies. The news source speculates that the deal could be expensive if the band's new albums in the future fail to deliver the success that the band has enjoyed to date. The deal also throws into question the value of Road Runner Records after Warner Music Group bought the label in December 2006 for $73.5 million. Despite other high profile artists, Nickelback is the label's most successful act.

Live Nation has raised the stakes for music companies since beginning to sign major artists last year. By offering services for nearly every aspect of those acts' careers, Live Nation means managing careers are simplified in theory. In addition, the growth of the digital music market has made it easier for the company and the acts it signs to distance the services from the tendencies associated with music companies and traditional recordings deals. Unfortunately, since the deals have yet to commence for any artist, the success of deals such as this have yet to be seen.

USA Today reported Tuesday that "more carmakers are adding digital tuners in their bid to woo audiophiles and add electronics." The report comes on the heels of South Korean based Hyundai Motor Company offering digital -- or HD -- radio in new Genesis model sedans up for sale this month. Germany-based BMW already offers HD radio tuners as a stand-alone option, and Ford Motor Company (NYSE: F) owned Volvo Cars will begin offering HD Radio as a standard feature in 2009 for most of the company's models.

HD radio has picked up significantly since 2002, when only 11 stations (AM and FM) offered a digital signal in addition to traditional analog signals. Now, more than 1,700 stations offer HD radio as well as second and third signals of specialized shows because digital signals use less bandwidth than analog signals. USA Today reports that carmakers moving in this direction is a major positive move for HD radio since the car is a major venue for radio. The newspaper also speculates that HD radio might prove a major threat for XM Satellite Radio Holdings (NASDAQ: XMSR) and Sirius Satellite Radio Inc. (NASDAQ: SIRI) subscriptions as well as any merger those companies make.

Unfortunately, many insiders point to many consumers unfamiliarity with and not knowing about HD radio as a problem for the product's success. It seems likely that with carmakers picking it up as a standard feature, more consumers will become aware and adopt HD radio as a venue, if at most because it will be a standard feature. Regardless, HD radio much like HD television is another development that gives consumers better quality and offers technology that audiophiles can enjoy and embraces new developments that are occurring concurrently with music industry and digital tracks.

British based EMI Group reported to the Associated Press on Monday that the company has recruited Rome-native Elio Leoni-Sceti, a former vice president of household products company Reckitt Benckiser, to lead up its recorded music division. Guy Hands, the CEO of Terra Firma (the private equity firm that bought EMI last September) also reported that he will back away from leadership "to become non-executive chairman of EMI." According to the AP, Leoni-Sceti was formerly a "brand manager at Procter & Gamble before moving to Reckitt Benckiser in 1992" and eventually moving up to lead the European division of the company by 2005.

Last month, leaders for EMI's North American branches, including Capitol Records president Lee Trink, left the company due to Terra Firma's preference for no presidents over the label branches in EMI. In the meantime, representatives and leaders for the music company's Artists and Repertoire divisions were given greater leverage and more power over the running of the labels, even though the plan left artists without the traditional representation that label presidents had provided. This news came on the edge of Coldplay releasing Viva la Vida or Death and All His Friends, with many rumors pointing to that album as a savior of sorts for EMI in 2008.

Since then, Coldplay's album has scored huge around the globe but EMI has fallen to only holding 9% of the music market in the first half of 2008. Guy Hands told the AP that Leoni-Sceti "joins [EMI] at the right time to shape, drive and lead EMI to become the world's most artist-focused and consumer-friendly music company." The new executive may fulfill Hands hopes with his background in brand managing and household products, marketing music in new ways and attracting a larger consumer base.

Radiohead's 2007 album In Rainbows has enjoyed critical and commercial success since it was released last October through a unique "pay-what-you-want" scheme directly from the band and its management team. Likewise, many fellow artists have come out in favor of the scheme or against the method used by the English band. Fellow English band Oasis, however, has completely dismissed any notion that the band will ever duplicate that method, citing expenses incurred during the recording of new album Dig Out Your Soul over the course of the past year.

A new report by Gigwise reveals the band's position and reasons for it, with Oasis calling the Radiohead method nothing more than a marketing tool. Noel Gallagher, Oasis' lead songwriter and guitarist, did call Radiohead "rebels and outsiders" when commending Radiohead's method as a unique marketing tool.

Oasis signed a new deal with Sony BMG Music Entertainment, a joint venture between Sony Corporation (NYSE: SNE) and Germany's Bertelsmann Music Group, last month that will see the band's own label, Big Brother Recordings, release the new album while Sony BMG oversees the band's back catalog and previous releases. The deal is a more traditional arrangement in today's market and environment that makes the new comments against Radiohead unsurprising.

7digital.com, a British-based digital music retailer, reported to Billboard Monday that the store has seen a 300% increase in sales of MP3 tracks during the first half of 2008. The report is attributed to the availability of MP3 tracks without anti-piracy technology from Warner Music Group Corp. (NYSE: WMG) and British music company EMI Group. EMI also enjoys two of the three best-selling albums in the store: Coldplay's Viva la Vida or Death and All His Friends, Kylie Minogue's X. If EMI had not lost Radiohead last year, the company would have all three with the band's In Rainbows.

Ben Drury, 7digital.com's CEO, commented on the place of the newer, higher quality, DRM-free tracks in the digital market, calling them "the future for digital music" and a sign that all online music sales will be handled in the format. In the meantime, 7digital.com has become the number two digital music retailer in the United Kingdom, entertaining nearly two million consumers every month. Although it is a UK-based company, American consumers can use the site and enjoy high-quality DRM-free MP3 tracks via a credit card and a currency conversion charge.

I've utilized 7digital.com in the past for the very reasons that the company is now reporting increased sales, even though the conversion charge and prices are not easy to determine due to the lower value of the dollar compared to the pound. The digital market deserves to be less about borders than it is and 7digital.com proves that DRM-free and internationalization can co-exist even with extra fees and charges for American users. Apple Inc. (NASDAQ: AAPL)'s iTunes Store is another digital retailer that could benefit from these types of sales, but the company maintains different stores for national markets.

According to a Billboard article published Wednesday, Neilsen Soundscan has reported an 11% decline in album sales during the first half of 2008, compared to the same period in 2007. Consumers purchased 204.6 million albums between January and June, over 25 million less than a year ago, but luckily not as sharp a decline as the 15.1% that occurred in the first half of 2007 as compared to 2006. Nielsen Soundscan told Billboard that the "drop is fueled largely by the 16.3% decrease in CD sales" despite digital album sales rising 34.4& to account for 15.4% of sales (31.6 million units).

Digital growth is still a productive and lucrative spot for the music industry, with single track downloads growing 30% to 532.7 million units in the first half of the year over first half sales in 2007 of 417.3 million units. Universal Music Group is still the most dominating music company, despite dropping .3% to 31.2% in sales. Sony BMG Music Entertainment and EMI Group also fell, with Sony BMG dropping .5% to 24.8% and EMI dropping 1% to 9.4%. The only major music company to gain any ground was Warner Music Group Corp. (NYSE: WMG), rising .8% to 20.8%. Independent music companies also rose in the first six months of 2008, capturing 13.9% of the market -- up 1%.

Declines in album sales are a constant trend in the music industry, so an 11% drop is no real surprise but the lowered decline over one year ago should cause some relaxation. The only problem with the drop in decline is that album sales are still falling off. Even though Nielsen Soundscan and Billboard both commented on the hope provided by single track downloads, the industry still looks to album sales to justify the recording and marketing of music. If that trend would change, single track downloads would make an obvious market to rely on. Instead, reports about declining album sales will still continue while single track downloads continue to grow.

Billboard reported Thursday that MasterCard Inc. (NYSE: MA) has launched a new campaign titled "Roots of Rock" that offers free downloads for cardholders from Universal Music Group. Apparently the free aspect of the campaign is limited and after 100,000 songs have been downloaded, MasterCard will begin to charge $0.80 per track. Even after the credit card company begins charging for downloads, pricing for tracks is still lower than Amazon.com Inc. (NASDAQ: AMZN)'s MP3 Store ($0.89) or Apple Inc. (NASDAQ: AAPL)'s iTunes Store ($0.99).

Cardholders who also make a purchase by August 31 will be "entered into a sweepstakes with a grand prize of having a meet and greet with Jon Bon Jovi, Eric Clapton or Kenny Chesney." MasterCard executive Amy Fuller told Billboard with the new campaign, the company has "created unparalleled music experiences with three of the world's most popular artists, providing consumers with an intimate perspective on these icons that few fans will ever have." But those fans will have to win the sweepstakes.

MasterCard's campaign to offer free downloads is like numerous other programs that are linked with music companies, but it offers to take the digital market to a larger consumer base. Lowered prices (eventually) for the campaign mean that Universal Music Group will continue to hold on to the lead in music sales, if only because the music company is the only one on board with MasterCard. Consumers that might not have ever downloaded a track may be enticed to try out the campaign and the sweepstakes. This type of growth is what the music industry will need if digital sales are ever going to replace physical sales successfully and completely.

Despite a 66% drop from first week sales of 721,000 copies, Coldplay's fourth album Viva la Vida or Death and All His Friends retains the top spot on the Billboard 200, selling 249,000 copies in the album's second week of release. Billboard reported the chart placement Wednesday and noted album sales are down 7.66% in the last week while dropping 13.2% behind the same week totals from one year ago.

The album was released in the United Kingdom three weeks ago tomorrow, while it has only been out in the United States for two weeks. It debuted big in the UK, selling 302,000 copies in the first three days it was out and selling 500,000 copies after ten days. Sales in the U.S. over seven days are obviously larger than the UK figures, pointing to rumored hopes from the band's music label EMI that the album would provide a significant boost for the company during the summer and possibly the year.

I've had the album since it was released, reporting that very day about the packaging of a vinyl and CD copy together that seemed to hint EMI was aware that consumers listen to music more frequently on MP3 players even if they prefer vinyl copies for nostalgia or the entire experience. Two weeks at number is impressive in today's market and even though sales dropped 66%, 249,000 copies is a nice figure for one week. If continued rumors are true that the band will release another album within a year and a half, the future of EMI may be more and more based on the success of one band.

Reuters reports today that Nokia Corp. (NYSE: NOK) has signed up Warner Music Group Corp. (NYSE: WMG) to its "Comes with Music" phone service and music store. Nokia is the world's top phone manufacturer and will be making a direct challenge to Apple Inc. (NASDAQ: AAPL)'s iTunes Store, according to numerous reports. The "Comes with Music" service is the first from a phone manufacturer to "push heavily into content" and "differs from other packages on the market as users can keep all the music they have downloaded" while in yearly contracts with Nokia.

WMG executives allowed the music company to join up with Nokia since the service "is the first global initiative to fundamentally align the interests of music companies with telecommunications companies." Nokia already secured the support of fellow music companies Universal Music Group and Sony BMG Music Entertainment in April, and "Comes with Music" launches later this year. Reuters speculates that the agreements with three of the top four music companies (EMI Group has not signed up yet) will "help Nokia attract smaller music companies and challenge the dominant pay-per-track sales model for digital music." Last year, download sales totaled $2.9 billion; if the 146 million Nokia phones had featured "Comes with Music", those sales would have surpassed the digital market.

Record labels have consistently looked for new methods to challenge Apple's grip on the music industry, and subscription models like "Comes with Music" may finally provide that challenge. Subscription models give the music industry more shares per download since users typically are not allowed to keep tracks downloaded during the subscription. "Comes with Music" is betting against that model since users will be allowed to keep music downloaded, and Nokia and the record companies are no doubt hoping that dynamic will keep those consumers renewing contracts with the service. Reportedly, the subscription for "Comes with Music" will only cost $20 per phone, which on a yearly basis would not be too expensive for unlimited downloads.

Despite criticism by Irish band U2's manager Paul McGuinness over Radiohead's method for releasing In Rainbows last October, U2's lead singer Bono has published an open letter in NME disagreeing and applauding Radiohead for the album and how it was released. McGuinness told the BBC in early June that the method was "a failure and backfired" because "it still resulted in over 60%-70% of listeners acquiring the album through illegal channels."

Bono's letter to NME, printed in last week's issue, takes a sharp left turn from his manager's opinion, calling Radiohead "courageous and imaginative in trying to figure out some new relationship with their audience." Bono also remarked how "blessed" he feels "to be around at the same time" as "a sacred talent" like Radiohead. U2 have recently taken steps to reach their audience, joining forces with Live Nation Inc. (NYSE: LYV) in a deal that will market their music and concerts with related products from one location.

U2 is still signed to Universal Music Group for the band's record releases, which may have been one reason McGuinness came out against the method Radiohead used last year. Neverthless, the disagreement between manager and lead singer is insignificant compared to the applaud Radiohead continue to receive from fellow artists. Trent Reznor of Nine Inch Nails, a band that was also signed to Universal Music Group, has also come out in support of Radiohead's method, even though he, too, took issue with some aspects of it. Reznor has since released two NIN albums the same way.