Guy Hands, the Terra Firma executive, who is now the "top executive" at EMI, recently warned staff that record labels need to let the CD go and embrace digital "opportunities" if the industry is to survive in the expanding market, according to a report by Billboard. Terra Firma is a private equity firm based in London that succeeded in buying out EMI in late July and since then both EMI and Terra Firma have been quiet about the direction EMI would go in any business model.

Citing the recent move by Radiohead to take their music directly to the fans (Radiohead was previously an EMI "act"), Billboard reports that Hands "proposed labels act more like venture capitalists" taking both profits and losses from artists recording and touring -- in direct opposition to the standard model of paying artists up front for album production. If that becomes operating procedure, EMI's move in April to discontinue use of Digital Rights Management technology could soon by overshadowed by more "pioneering" and inventive ideas, hopefully designed to give fans better access to the music they crave.

While it is not surprising that the new executives in charge of EMI would shake up the tired model, it is quite telling that a leaked memo as revealing as this could only come in the wake of Radiohead's move for their new album In Rainbows. It seems all too apparent that the record labels needed a very stable artist to make the first move toward a more fan-based market, as opposed to any label risking a move away from the tried and failing model that Hands' cites. EMI is apparently the first label to embrace these new ideas, as was indicated by the DRM move, but hopefully the bigger companies will follow suit in due time. How long can they sit on their "hands?"

Nokia (NYSE: NOK) made a big fuss today as it launched an online music system and several multimedia phones. Some will have new touch screens like the Apple (NASDAQ: AAPL) iPhone. These are going to market in Europe almost immediately. Apple has not given a date for an iPhone launch there.

Most of the competition for Apple's music and device products is laughed at on Wall Street, Steve Jobs & Co. have sold over 120 million iPods which fuels traffic to iTunes. The iPhone is the most anticipated handset launch ever.

But, Nokia has what no other company can claim--a 36 share of the global handset market. Reuters writes that the company estimates that the global multimedia phone market will grow by 50% to 120 million units this year from 80 million in 2006.

With such a large market share, investors want to know where Nokia will go for future growth. It says the new revenue will come from software and service. The software will power multimedia phones. The services will include its new music store.

It is a frightening exercise for Motorola (NYSE: MOT) shareholders to look back at the launch of the RAZR and hit tremendous success which was still evident less than two years ago. Nothing prevented Motorola from riding the sales of that handset to get into the mobile media download business.

And, now it is too late.

Douglas A. McIntyre is a partner at 24/7 Wall St.

In Fox News' review of the new Paul McCartney album, Memory Almost Full, the writer comments that "McCartney, the most successful pop performer/singer/writer in history, has left the mainstream music business." Although his reference is in regard to the degree of support the former Beatle had received from Capitol Records, an imprint of EMI, for his 2005 Grammy-nominated album Chaos and Creation in the Backyard, it made me wonder how big a role markets that are not music are beginning to play in the sale of music, both physically and digitally.

Memory Almost Full will be the first Beatle-related album available for sale digitally, a shift that McCartney's solo catalog may echo soon, but it's also notable because it's being released by Starbucks' (NASDAQ: SBUX) new independently owned label, Hear Music. This isn't the first time that the role of independent or small labels has been brought up in reference to the digital stores, but a name like McCartney's switching is big news indeed. His back catalog may not bring in as much as a digital Beatles catalog would, and understandably so. Still, the Beatles catalog will be available from EMI, a major music label, and it has been the most accommodating to digital sales thus far.

The point is that the "mainstream music business" was not able to keep an artist like McCartney satisfied. I realize that I am biased with regard to McCartney, but the relevance of this change cannot be overlooked for the music market. Hear Music probably should not even be linked with the music market because of its connection with Starbucks. If another industry, in this case a service industry, is able to better accommodate artists and ultimately fans, then the music industry needs to wake up. Sales are slow anyway.

In a pop-music landscape dominated by the likes of Justin Timberlake and Fergie, it's becoming harder for music-industry veterans to compete. Rod Stewart, once a controversial Lothario with his threatening sexuality and ribald lyrics, has metamorphosized into a Scottish Tony Bennett, releasing his interpretation of old standards (and enjoying very respectable sales from the effort).

The self-proclaimed "Soldier of Love" Donny Osmond has now hopped aboard the cover-album bandwagon, releasing Love Songs of the '70s. The album, which hits stores today, contains 12 gems from the decade that introduced Saturday Night Live and Saturday Night Fever. From the soul of Al Green (is the act of squeaky-clean, eternally youthful Donny Osmond covering the smoldering "Let's Stay Together" a sign of the musical apocalypse?) to the saccharine wailings of Dan Hill's "Sometimes When We Touch," and Barry Manilow's "Mandy," the album has a little something for everyone who enjoys old-fashioned songs covered in the most white bread of ways, or appreciates irony.

And for those who pinned up a Partridge poster or two, check out David Cassidy's new techo effort, which offers, according to Amazon.com (NASDAQ: AMZN), "club-rocking remixes of Partridge Family classics." I only wish I were joking.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

It's stunning: Apple Inc. (Nasdaq: AAPL) has sold 100 million iPods since November 2001. A look at the stock chart for this period tells the whole story for investors.

Of course, part of the success was having good content and selling it for $0.99 a pop. But why this amount?

I had a chance to interview Rafi Mohammed, who is an expert on pricing. He runs a consulting firm, Culture of Profit, and is the author of the book The Art of Pricing.

He admits that having a fixed-price system is a bit strange. After all, some people would rather spend a couple bucks for some music – while practically nothing for other music. Why not have a dynamic pricing system?

Then again, it seems that Steve Jobs can do just about anything. In fact, Rafi considers him kind of like Wal-Mart Stores Inc. (NYSE: WMT). That is, if you want to make it in the music biz, you have no choice but to deal with Jobs. It's that simple.

According to Rafi: "It's interesting that analysts haven't picked up on the fact that as long as the iPod remains popular, Apple's pricing policies are going to be a thorn to the music industry. With digital music forecasted to account for 25% of all music sales by 2010 (it's 10% today), a growing percentage of the music industry's revenue will be subject to Mr. Jobs' decision on what he thinks the 'right price' should be for iPod owners and potential customers."

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Yahoo! Inc. (NASDAQ: YHOO) and SanDisk Corp. (NASDAQ:SNDK) are launching a new MP3 player with WiFi capacity, joining a host of rivals to Apple Inc.'s (NASDAQ: AAPL) iPod, including the Microsoft Corp.'s (NASDAQ: MSFT) Zune.

The iPod currently has 70% of the portable music player market, and, that number appears to be holding. If the iPhone sells well, Apple will have another horse in the music download space. Cellphones that can download music are offered by the large handset manufacturers including Nokia Corp. (NYSE: NOK) and Motorola Inc. (NYSE: MOT), but there is little evidence that they have done any damage to the iPod's growth rate.

As much as it must pain Apple's competitors, no one has been able to throw anything in front of the company to slow the momentum of the iPod and its download service iTunes. The European Union recently announced that it would look into pricing issues involving iTunes and the record companies. That may eventually hurt Apple just as antitrust actions by the EU have slowed Microsoft's progress on the Continent.

Apple's only enemy appears to be its own success.

Douglas A. McIntyre is a partner at 24/7 Wall St.

As I continuously ruminate about the state of music, album sales, and the growth of online digital markets, how much consumers care about these topics is something I have not strayed too close to. I think it is safe to say that consumers do care, but I cannot say if it is to the degree with which I am fascinated and write about it.

I was reminded by a mentor and colleague a few days ago how easy the use of Apple Inc.'s (NASDAQ: AAPL) iTunes Store and iPod are if you are hoping to listen to only one song or a few songs, but not an album. Of course, that very dynamic is what I so often write about in my blogs about the death of the album, but who exactly is decrying the death of the album? No matter how much I write about that death, it is very apparent that those who are worried about the death of such a money maker are the labels and the industry.

The nice thing about iTunes and other digital stores is that if you are just browsing you can listen to clips of the songs. This is not a method of shopping that you can easily acquire at stores like Best Buy (NYSE: BBY) or Target (NYSE: TGT), although Best Buy is beginning to incorporate computer stations where you can make test runs of programs like Rhapsody and Napster. They hope you will then sign up for a subscription to that service through Best Buy. Browsing at stores like these only ever really entails looking at the product. If you know nothing about it, then you cannot know if it will be something you are happy to spend your money on.

Vote for the Worst enjoys being a fly around the Tyrannosaurus Rex that is "American Idol."

`"American Idol" isn't really a talent competition," said Dave Della Terza, who founded the snarky Web site in 2004, in an interview. "It's a carefully crafted realty show."

Della Terza hasn't made many friends at Fox and its corporate parent News Corp. (NYSE: NWS) or among rabid fans who regularly accuse him of trying to ruin America's most popular television show. Their angry emails on Vote for the Worst are hysterical.

Topic number one on the minds of his readers is Sanjaya Malakar. For those of you who are in a cave or in a coma, Malakar is a hapless young man who has managed to charm his way into the hearts of the American public. Every week, millions of viewers wait to find out what pop song the 17-year-old will butcher next.

In other words, Malakar is perfect for Vote for the Worst.

"It's pretty obvious that he's scared out of his mind," he said. "It's so awkward that the judges never know what to say."

Last night was no exception. Malakar put his long flowing brown hair into a mock Mohawk. His rendition of No Doubt's "Bathwater" was weird. Simon Cowell summed it up perfectly when he said that at this point it doesn't matter what the judges say about Malakar. Cowell is Sanjaya's "favorite" judge because he's "brutally honest," according to the show's Web site.

This season has had a few highlights for Della Terza. Idol contestant Chris Sligh, the chubby guy with the curly hair, gave him a shout out after finishing one of his songs. The site was also mentioned on VH1's "Best Week Ever."

"He understands the humor behind our Web site," he said of Sligh.

Maybe he'll have more time to enjoy Vote for the Worst. Sligh's rendition of "Every Little Thing She Does is Magic" didn't rock the house.

Try as it might, Fox can't ignore Vote for the Worst.

The site gets about one million hits a day and as many as four million hits on show nights. I had trouble getting on Vote for the Worst during last night's broadcast.

Vote for the Worst makes money, but not enough for Della Terza to make a living, he said.

Della Terza took pains to point out that he has a real job. Actually, he's got two of them.

"This is definitely not a job," he joked.