We7 plucks The Orchard catalog

Ad-supported music service We7 today announced the addition of over 1.3m songs from The Orchard’s catalog. The agreement between the British, Peter Gabriel backed service and the U.S. distributor covers all three of We7’s usage models: ad-funded, on-demand streaming; ad-supported free downloads; and paid-for MP3 downloads.

After striking deals with PIAS and EMI earlier this month, CEO Steve Purdham can now boast license agreements with three major labels (Sony BMG, Warner Music and EMI) and a rising number of independent companies. 

These deals look convincing at first glance, but they come with a blemish, as Glenn at Coolfer rightly points out: 

“That’s great for We7, but it’s product offering is still a jumbled mess. One has to wonder if it would be better off setting the bar higher and accepting music only from those labels that will participate in all three offerings. A well-defined product has worked well for eMusic (MP3s only, a monthly rate), Amazon.com (all labels, all MP3s) and imeem (stream everything).
Earlier this month We7 signed up EMI but does not offer the music group’s tracks as ad-supported downloads. Sony BMG is also on board, but only for ad-supported streaming. Warner UK is on boardas well, but like EMI has opted out of the free, ad-supported downloads.” 

Wal-Mart secures another AC/DC exclusive

After winning Columbia Records’ support to become the exclusive U.S. retailer of the upcoming new AC/DC release “Black Ice”, Wal-Mart will also be the only outlet to sell “AC/DC Live: Rock Band” the New York Times reports. MTV Games will officially announce the partnership for the new product later today. The game is expected to cost significantly less than other versions of “Rock Band”. About $40 instead of $60. 

“If you want to be a physical band, you better make an alliance with a strong physical retailer,” said Steve Barnett, chairman of Columbia Records. “It’s a great way to sell the new album, the catalog, the game, merchandise and DVDs.” MTV and Wal-Mart are exploring the idea of setting up temporary shops to sell the game and the album in Manhattan and Los Angeles, where the retailer has no stores.

Can’t wait for instore audio at my local Wal-Mart. Checking out there is already a highway to hell. At least now the soundtrack will fit the occasion.

Pakman to exit eMusic by year’s end

After five years at the company David Pakman, President & CEO of eMusic, will leave his post by the end of this year to take a job at a yet undisclosed VC firm. eMusic doesn’t have a successor yet and has appointed the Barlow Group to help with the search for an executive to replace David. Keep your fingers crossed this process won’t mimic the CEO casting at MySpace Music. While some pundits suspected some kind of fall-out with eMusic’s owners (JDS Capital) led to his exit, I’m being told David will leave to persue “his dream job”. Turns out his new company is located right accross the street from eMusic’s offices in New York. Pakman will assist the transition and will stay with the company as a board member. No matter who will try to follow in his foot steps: He or she will have to live with high expectations. While David succeeded in building eMusic into a $70m business with some 400.000 paying subscribers the company’s owners “look forward to working with a new CEO who will take the company to several hundred million of revenue.”

UK labels want upfront payment from EUK

The physical market in the UK might see some product shortages in coming weeks. Music Week reports that wholesale operation EUK was refused credit by its suppliers. Entertainment distributor EUK is a subsidiary of the Woolworths Group which recently posted nightmare inducing half year figures. While increased net loss and shrinking revenues were mainly due to Woolworths’ week high street business, EUK has seen solid business recently. Nevertheless, the labels fear potentially worsening financials at Woolworths Group could affect their business. According to the trade mag, EUK is currently only able to get stock by paying upfront. EUK provides retailers like Zavvi, Sainsbury’s and Asda with music products.