• Alain Levy; The United States has been a big problem for EMI
• Ronnie Spector won a 13-year court battle against ex-husband/producer Phil Spector
• Music Industry Predicts Holiday Sales Success For 'Familiar Music For The Time'
• Digital Bridge Announces New Subsidiary: Tantivy Entertainment Inc.

Alain Levy; The United States has been a big problem for EMI

EMI's glittering roster of recording artists, from Mariah Carey to the Rolling Stones, failed to save the music giant from a dismal year, but investors are pinning hopes on new recruit Alain Levy to bring sparkle back to the balance sheet.

In an industry facing its worst ever year, EMI is reeling from two failed mergers and a lack of big hits. Jaded investors are eager to hear Levy's plans as the new head of recorded music when the group reports an expected sharp fall in first half profits Monday.

EMI warned in September that full-year profits would slide 20 percent as the group floundered in the world's biggest market, the United States, and all eyes will be on how business is faring ahead of the all-important Christmas period.

Already suffering low growth as CD replacement sales wane and piracy eats into the profits, the economic slowdown and Sept. 11 attacks in the United States have hit the industry hard, battering majors that also include Warner Music, BMG, Sony Music and Universal.

Analysts are forecasting a fall in EMI's operating profit to between $62 million and $67 million for the six months to end September, from a previous $161 million, on revenues of around $1.58 billion, down some four percent.

The group is also expected to post a sharp fall at a pretax level, with forecasts ranging between break-even and a loss of $!3.7 million compared to a previous profit of $85.6 million.

``We'll want to hear Monday just how bad the industry is right now as well as Levy's first impressions of the business and what actions he might take to improve it,'' said Helen Snell, music analyst at ABN Amro in London.

DIVIDEND UNDER THREAT?

Recorded music sales in the industry as a whole are expected to shrink more than 10 percent this year and the outlook is not much better, with sales seen down three percent next year. ``We expect 2001 to be the worst year in music history,'' Merrill Lynch said in a report this week.

In such a climate, some analysts say EMI's pledge not to cut its dividend this year, based on what it predicts will be a better second half, could come under threat.

``There is scope for them to fall a little short of where they are currently expecting to be,'' said Snell.

``My concerns are that we haven't seen any improvement in the global music industry and if anything we've seen a continued decline and I think they may simply find it hard to outperform given the state of the industry overall,'' she added.

The key will be the Christmas period when EMI is releasing some big albums. EMI's Pink Floyd ``Echoes'' album has already debuted at number two in Britain and the United States but its roster could struggle to match the success of last year's Beatles No.1 album.

``If they don't sell well through Christmas, we could get to the second week of January and perhaps they might warn again on profits,'' said one analyst.

REVIVING THE U.S.

The United States has been a big problem for EMI. Under its former head of recorded music Ken Berry, EMI watched its market share dwindle to 10 percent, ranking it last among the five majors.

Under Levy, investors hope things will be different. As head of Universal's PolyGram, Levy built the strongest company in the business and he has already been doing the global rounds at EMI.

In the meantime, analysts are not getting too excited. EMI's shares have lost 50 percent of their value so far this year to around $4.40 pence and predators are still not circling.

``There's little to be positive about. If they do ramp up profits in the short term, it could be at the expense of longer term growth. This is a weak company in a weak market at the moment,'' said Simon Baker, analyst at SG Securities.

Ronnie Spector won a 13-year court battle against ex-husband/producer Phil Spector

On November 13, legendary rock icon Ronnie Spector won a 13-year court battle against ex-husband/producer Phil Spector over royalties due her 1960's group The Ronettes. A New York State appeals court ordered Phil Spector to pay close to $3 million dollars plus interest to Ronnie and the Ronettes.

The Supreme Court's Appellate Division ruled in a unanimous decision that upheld a lower court ruling (of $2.6 million in June 2000). The ruling basically stated Phil Spector breached a 1963 contract with the Ronettes for royalties and payments of licensing for hit songs such as ``Be My Baby,'' ``Walking In The Rain'' and ``Baby I Love You.''

Says Ronnie Spector, ``I'm thrilled at the appellate courts unanimous decision. All along I remained focused and knew that only one decision could be reached if you followed the facts and the law. I hope this proves to be positive for all recording artists and affords other acts the opportunity to be properly compensated for their work.''

Ronnie Spector, the original bad girl who redefined and helped shape the look and sound of rock & roll has truly become a champion of artist's rights. She joined the Recording Artists Coalition to help oppose a law that amends the Copyright Act, making sound recordings work for hire and impossible for artists to reclaim as their own in the future. (Her consistent involvement in the coalition prevailed, thus successfully repealing the law). Ronnie stated, ``With recording artists like Courtney Love and Don Henley fighting for the rights of recording artists, I'm proud to play a role in correcting some of the past and present injustices.''

This past year, Ronnie Spector has also put her energy back into the studio to record music for a much-anticipated album. She is currently negotiating a new recording deal. With an optimistic insight into the present state of women in the music business Ronnie enounces, ``This isn't the 60's anymore. This is a different world today where women are making a big difference.''

Music Industry Predicts Holiday Sales Success For 'Familiar Music For The Time'

Since September 11th, music has played a larger role than some might think in helping to heal a grieving nation. It has helped some to mourn their losses, it has helped some to see off their loved ones in the military, it has helped others to embrace life and given others tremendous pride in their country. From the enormous sums of money raised from concert events, to the apparent questions that surround the music industry's capability to give the nation the music it needs, this Fall season is shaping up to be like no other.

Yet, industry experts seem to agree that this Christmas season will see a movement towards the purchase of familiar, comforting music, from artists who remind us of better times. ``People are looking for music not just for entertainment's sake,'' says Caren Goldstone, Vice President, Music Marketing for The Handelman Company, ``but to give themselves a level of comfort in these very uncertain times.'' Jim Ryan, WLTW-FM (New York) operations manager adds, ``Since September 11th, people have been reaching out to music to re-live familiar memories.''

And with that it should come as no surprise that many industry executives are expecting success from releases with classic songs by familiar artists with positive messages. Many are specifically citing and predicting success for the Bee Gees: Their Greatest Hits: The Record slated for release on November 20th -- a 40-track, 2 CD-set comprised of 19 #1 singles, a virtual musical soundtrack for those who remember better times from the 60's, 70's, 80's and 90's.

``One of the best records to fill the bill this Christmas season is Bee Gees: Greatest Hits: The Record, an all hits package that should conjure up warm memories for several decades of fans,'' said Vinnie Birbiglia of Trans World Entertainment Corporation, which owns and operates Record Town, Camelot Music, The Wall and Coconuts Music.

Goldstone, whose Handelman Company provides music for Walmart and K-Mart making it one of the largest music retailers in the world agrees, ``This Bee Gees record is coming at just the right time. I think that people will embrace the nostalgia that comes from these songs that was so much a part of our lives during those times.''  Ryan adds, ``Who hasn't had good times while listening to the Bee Gees?''

Digital Bridge Announces New Subsidiary: Tantivy Entertainment Inc.

Digital Bridge Inc. today announced the formation of Tantivy Entertainment, Inc., an innovative music production and distribution company formed to capitalize on significant opportunities in the recording industry.

The company will be producing and distributing original live music recordings of nationally recognized artists at proprietary Branded Venues, and will also purchase pre-existing jazz, big band, and classic rock music catalogs and other entertainment assets.

``The mission of Tantivy Entertainment is to capitalize on undervalued catalogs, underworked venue opportunities, and undervalued artists, and to leverage our intellectual property assets in the entertainment industry to the greatest extent possible,'' stated John C. Flanders, Jr., Digital Bridge's Chief Executive Officer.

``We've developed a fantastic 'Branded Venue' business model that utilizes underworked venues that draw undervalued artists, and merges the two into a valuable moneymaking concept. The formation of Tantivy Entertainment is a perfect example of what Digital Bridge does as an International Business Architect.''

Digital Bridge also announced the appointment of Mr. Jerome Bowie as Managing Director of the new subsidiary. Mr. Bowie has over 30 years of experience in the music industry, having served as an executive with K-Tel and other music companies, where he established relationships with major retail and record store distribution partners throughout North America. Mr. Bowie is also responsible for the growth of Tantivy's Catalog Division, and has secured and distributed hundreds of valuable music properties throughout his career.

``I am absolutely thrilled to be working with Digital Bridge's Tantivy Entertainment subsidiary,'' stated Mr. Bowie. ``There is an enormous amount of untapped opportunity in this industry, and the team at Digital Bridge not only recognized that opportunity, but built an incredibly robust business model to capitalize on that opportunity in record time.''

Tantivy Entertainment will be recording live music at select ``Branded Venues'' throughout the world, and will be distributing these live recordings through major music retailers. The intimate setting of these Branded Venues helps set the stage for some remarkable performances, which will be captured with state of the art recording equipment.

``This model benefits the venue, whose brand is reinforced at a global scale, benefits the artist, and directly benefits Tantivy Entertainment, which will control all aspects of production and distribution,'' continued Mr. Bowie.

Tantivy Entertainment is currently negotiating with several music venues, artists, and catalog owners, and also anticipates the launch of its Web site within the next few weeks.

About Digital Bridge Inc.

Digital Bridge is an ``International Business Architect,'' that acquires, manages, and maximizes undervalued assets throughout the world, and generates opportunities and profits by leveraging those assets in creative ways. The company provides management, sales, distribution, marketing, and Internet enterprise solutions to a wide range of clients and partners in many different industries. Additional information can be found at http://www.digitalbridge.com and at http://www.otvnet.com.