The $5 CD

I was surprised to find many young people enthusiastic about the prospect of paying $5 for a CD.

I'm sure the record business is not.

I can hear them right now: "We can't make money on $5 CDs" -- like they can make money on free downloading, right?

I put the question to students in my USC class "Music, Broadcasting & the Mobile Future". About 75% of them -- a surprising number -- said they would buy CDs or multiple CDs -- a significant increase over their current spending -- if the labels charged a flat $5 for the CD.

Only one condition: they also want a high fidelity digital version for purchasing the&hellip

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Wrong Trax for the Record Industry

There was another abortion in the music industry this week.

QTrax, the startup that promised free music from the four major labels, and a number of indies launched without the music of the four major labels.

This is an advertiser supported project that had been at least a year in the making -- not unique -- just another whack at trying to offer music to the next generation for free.

Unfortunately, either QTrax or the labels scotched the much ballyhooed launch. We've heard that the ink wasn't dry on a number of the agreements. I don't know who launches a business based on four record labels without having the deal&hellip

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Clear Channel on Jenny Craig

Tom Taylor broke the news of John Hogan's "draconian" first quarter contingency plan in his Taylor on Radio-Info publication Monday.

It's bad -- all bad.

Hundreds of additional jobs are in jeopardy -- this from the industry leader that has been cutting jobs at a record pace in preparation for what they hope will be the completed sale of Clear Channel to Bain Capital and Thomas Lee Partners within a few months.

Clear Channel has a problem. It isn't making budget for the first quarter and revenues are down.

In the movie Airplane, Lloyd Bridges who played the character&hellip

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The HD Alliance’s Satellite Radio Agenda

The HD Radio Alliance has gone and done it.

It has officially opposed the merger of XM and Sirius Satellite Radio.

That tells me enough that if I'm at the DOJ, I'm going to approve the merger immediately -- which they're likely to do anyway.

You may remember that iBiquity, the designated manufacturer of HD radio, unofficially asked the FCC to consider mandating the manufacture of new satellite radios so that they would include the HD subchannels. Exactly, what satellite subscribers want, right?

Wrong.

Now the HD Alliance which riled the terrestrial radio business with its "creative" commercials that&hellip

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Lost.fm

There is quite a controversy building around whether CBS-owned Last.fm is an eventual replacement for terrestrial radio.

The Motley Fool investors publication says Last.fm could mean the end of radio.

Kurt Hanson, who I respect more on these issues, says wait one minute -- Last.fm isn't even radio.

It's an interesting prospect either way. To bring you up to date the four major record labels have cut a deal with Last.fm to get a penny or so for every time a young consumer goes to Last.fm and requests a song. Hanson points out, "Going to a website and saying

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