By Kate Holton 27 minutes ago

CANNES, France (Reuters) - Vivendi Chief Executive Jean-Bernard Levy has no plans to spin off the music unit Universal and he said on Saturday he believed the gloom surrounding the industry had been over done.

Speaking at the annual Midem conference, Levy said the music industry was going through a huge transition at the moment, with new business models for mobile and Internet services appearing all the time.

But he predicted there would still be a viable market for physical products like CDs for many years to come and he said the industry's future lay, as always, in spotting the right creative talent.

"I think altogether today there is an exaggeration in the industry," he told the conference.

"Of course it is not doing that well, but look at us, we have flat revenues, a good two digit margins and it's not as dark as what many people describe."

The music industry has been hit in recent years by Internet piracy and the rapid growth in digital sales but the planned job losses at British company EMI have highlighted the issue even further.

Levy joked that Universal could benefit from its rivals' problems, by gaining more staff or bands, but he said that ultimately a stronger competitor would benefit the whole industry.

"We like to have strong competitors," he said. "I hope that after the shake up (at EMI) there will be a strong set of major companies that will help the music industry to grow."

Universal is the world's largest music company, with artists such as Amy Winehouse, Mika and U2, and Levy said he was very committed to the group.

"Back in 2003 the numbers didn't look very good," he said "(But) as a shareholder of Universal, I have seen the numbers go up quite sharply. We had in '03 a 3 percent operating margin business and we have today a 12 percent operating margin business.

"We do have a lot of satisfaction … and we're very committed."

DIGITAL TO GROW

He said digital entertainment would continue to grow, due to the developments in technology, broadband penetration and globalization but he said this would not necessarily mean the immediate demise of the CD.

"If we (have the right creative policy) and if we understand the technology well and the consumer well, then … digital entertainment will continue to expand and will be very successful," he said.

"It is a transition into a very diversified model, of which CDs will still play a part. So I do not think it is black and white."

A report released this week by the international trade body, the IFPI, said global music sales were expected to be down around 10 percent for 2007, despite a 40 percent increase in digital music sales.

(Reporting by Kate Holton; editing by Tony Austin)

27 minutes ago

NEW YORK (Billboard) - If all goes as planned, rapper Joe Budden will release his first album in five years, "Padded Room," in the spring.

"Padded Room" will be the follow-up to 2003's "Joe Budden," which launched the hit "Pump It Up." Three editions of his "Mood Muzik" mixtape series have followed, but Budden told Billboard.com that he's looking forward to another proper album release.

"It's complete," Budden said of "Padded Room," which will be released by Amalgam Digital. "It basically will be in the same vein as 'Mood Muzik,' just a little more structure, and the mood will probably be a little lighter. I'm definitely pleased with the direction that it's going."

Budden had intended to release a second album called "The Growth" in the wake of the self-titled record's success. But it was scuttled by a deteriorating relationship with Def Jam, his label at the time, and a rumored feud with outgoing CEO Jay-Z. Nowadays Budden says that "the relationship went sour over the years, not something that just happened spontaneously or instantly. It was kind of a developing process."

Looking beyond "Padded Room," Budden hopes that there won't be as long a wait for his third album. "I'm in the studio every single day, vibing and coming up with ideas," he said. "There's always music around to put out, so you'll hear more from me sooner than later, I hope."

Reuters/Billboard

By Ken Tucker 26 minutes ago

NASHVILLE (Billboard) - Singer-songwriter Jewel, who is releasing a country album this summer on Nashville-based independent Valory Music, is finding early acceptance from country radio. Her single "Stronger Woman" is the Hot Shot Debut on Hot Country Songs this week, at No. 50.

It's Jewel's second appearance on the country chart: In 1999 she peaked at No. 56 as the duet partner of Merle Haggard when the pair reprised his 1984 No. 1 "That's the Way Love Goes."

The new song, written by Jewel and Marv Green, is a midtempo, banjo-laden testament to believing in one's self. "I like a beginning, middle and end to my songs," Jewel recently told Billboard in explaining her move to country. "That's pretty much just country radio right now."

Playing Jewel on a country station is not a stretch, according to KEGA Salt Lake City program director Cody Alan. "If you listen back to old Jewel music, you realize the rootsy feel of her songs are country in nature," he said. "Her relationship with (professional bull rider/cowboy) Ty Murray helps to give her some country cred. That, along with a great female lyric on 'Stronger Woman' seem like the makings of a country hit."

The song will be available exclusively at iTunes starting February 5. Jewel's album "Perfectly Clear," which was produced by Nashville heavyweight John Rich, is due June 3.

Reuters/Billboard

By Gary Graff 42 minutes ago

NEW YORK (Billboard) - Todd Rundgren's plans for his next album may sound like utopia to his most ardent fans.

Rundgren told Billboard.com that he hopes to make what he calls an "arena rock record … something between prog rock and pop music. It's very hooky songs, big, sing-along choruses and melodic guitar solos and essentially the kind of music that works well in an arena. Everything has to be very deliberate and there's often a lot of air in it to allow it to spread out and fill the space."

Large concert spaces appeal to the longtime musician/producer's instincts as a performer. "I figure it could become a self-fulfilling prophecy: If I make a successful arena rock record, I'll wind up playing arenas!," he said with a laugh. "I wouldn't mind being back in that kind of venue because of the kinds of things you can do with production. You can make your shows more interesting, which would be fun to do."

Rundgren said he's got "a few" songs already written for the project, and he plans to start working in earnest on it in early February, after he finishes his current North American concert tour.

"I write in a very strange way," he explained. "Things are very fragmentary for a very long time, and then they come together very quickly near the end of the process. I don't even write the lyrics to the songs until immediately before I (record) them."

How the album will come out remains up in the air, too. Rundgren's last release, 2004's "Liars," was released by the now-defunct Sanctuary imprint, and he hasn't found a new label yet.

"At this point it's one of those things where you make the record and then you shop it around for a distribution deal," he said. "If everything goes well on both sides of the deal, it increases the possibility of sticking with the same distributor, whoever that might be, for another album."

One thing Rundgren won't be doing — at least not very much — is touring with the New Cars. The band, he said, is on "indefinite hiatus at this point," though it's open to regroup for corporate and private dates.

"We couldn't get the rights to use the name the Cars, and the New Cars just confused everybody," Rundgren said. "We didn't want to have to start all over again. And I've got my own music and my own audience; I had no reason to start trying to begin a new career with another band."

Reuters/Billboard

By John Benson 11 minutes ago

NEW YORK (Billboard) - After Velvet Revolver wraps a spring tour in support of its second album, "Libertad," frontman Scott Weiland will rejoin his former bandmates in Stone Temple Pilots for a handful of summer reunion shows, guitarist Slash told Billboard.com.

STP broke up in late 2002; the band's last album was the previous year's "Shangri-La Dee Da." No other details have yet been revealed about STP's plans.

In the meantime, Weiland and his Velvet Revolver bandmates are still plugging away in support of "Libertad" with dates that run through early April. There's also the hope that recording for album No. 3 could begin in the spring.

"I don't think anybody knew the second one came out," Slash admitted. "We didn't promote it, for one. The first record I remember going out for three weeks on the road and just promoting, with (bassist) Duff (McKagan) and myself going to Europe, Japan and the States.

"This time around we actually went on the road way before the album came out. It's just a different kind of promotion," he said. "People are just going to a concert, and you're not necessarily drilling into their head about the new album. So I think that had a lot to do with it. All things considered, it doesn't matter to me. It's still just a really good record."

On the current tour, Velvet Revolver has added additional Guns N' Roses and Stone Temple Pilots covers it hadn't performed previously.

COVERING THEIR OWN SONGS

"There was a point there where I thought that we felt like we were sort of obligated to do them, like people really, really were expecting that," Slash said. "And once we got a bigger catalog by putting out another record, there was a feeling like we don't necessarily have to do any Guns N' Roses and Stone Temple Pilots songs."

He added, "It was more like Pete Townshend feeling like he didn't have to smash his amps every night. So for a second there, that was the plan, but then we personally started missing it. They were like the easiest cover songs for us to cover because we wrote them, so we just sort of got over that."

Speaking of Guns N' Roses, Slash admitted that he has no contact with Axl Rose, nor has he heard material from the long-awaited Guns N' Roses album "Chinese Democracy." But any silence between the camps is bound to end come 2012, when the influential hard rock act becomes eligible for induction into the Rock and Roll Hall of Fame.

Slash, McKagan and drummer Matt Sorum experienced firsthand what could be in store based on the drama that ensued last year around Van Halen's induction into the Rock Hall. With Eddie Van Halen in rehab and David Lee Roth refusing to attend after a set-list squabble, Velvet Revolver ended up jamming with Michael Anthony and Sammy Hagar.

"Somebody asked me, 'Do you think you guys will be able to show up for the Rock and Roll Hall of Fame (induction ceremony) in five years?"' Slash said. "I was like, 'Oh, I guess we're eligible.' It never dawned on me before then. If this comes up, I'd hope we'd be mature enough to get up and do that, but I have no idea."

When asked what his gut feeling is about Rose and the other original members coming together, Slash said, "My gut doesn't count because it's not just about me. It's about everybody. And if it was easy to predict, we probably wouldn't have had so many hassles in the first place."

Reuters/Billboard

By Cortney Harding 11 minutes ago

NEW YORK (Billboard) - Somewhere in the mid-'90s, Kenny G stopped being just a jazz musician and became a cultural phenomenon. His light music and luscious curls made him the butt of many jokes, but the G man laughed all the way to the bank.

Since 1991, he's sold 33 million albums, according to Nielsen SoundScan. He holds the record for the highest-selling Christmas album, as well as a spot in the Guinness Book of World Records for playing the longest note ever recorded on a saxophone.

His last few records, however, had underwhelming sales; his 2006 album, "I'm in the Mood for Love," sold only 250,000 copies. But Kenny G is ready to make a big comeback — his first album of original material since 2002, "Rhythm and Romance," will be released February 5 through Concord Records and Starbucks.

Q: Why did you leave Arista after 25 years on the label?

Kenny G: "I was with Arista forever, and Clive (Davis) was like family to me. But I wanted to do an album of original material, and that wasn't what they wanted me to do. I personally wanted to get back to my roots and explore doing creative things. Also, I think people are tired of cover records and they are hungry for original music."

Q: How did you come to sign with Starbucks and Concord?

Kenny G: "I was actually one of the original Starbucks investors, and (chairman) Howard Schultz is a good friend. I presented the idea for the record to Concord and Starbucks, making it clear that I wanted to do a Latin album and write all the music. Everyone signed on, and I've been really happy with the deal so far. I think the future of music retail is really in stores like Starbucks."

Q: Will your fan base respond to a Latin record? Your last few albums have been either covers or greatest-hits records.

Kenny G: "Honestly, I think my fans might have been disappointed with the fact that I haven't been putting out original material recently. This record is really me getting back to my roots, doing lots of improv and melodies, combined with a Latin feel. The title is pretty apt — the album has both rhythm and romance. I think this is my best work since the mid-'90s."

Q: Talk about the new line of saxophones you just debuted.

Kenny G: "There will be two models — the G series, for more advanced musicians, and the E series, which is for educational purposes. I partnered with Rheuben Allen, an amazing sax repairman, and he actually relocated to China to live at the factory and quality-check all the instruments. I'm especially excited about the E series, because so many kids learn on horns that aren't built that well, and we're making sure that the educational horns are top quality. I'm working on partnerships with music educators, because it makes such a difference when a kid learns on a great horn."

Q: Are there other branding opportunities in your future?

Kenny G: "I am partnering with D'Addario, a company that manufactures instrument strings and reeds, to do my own line of saxophone accessories. There will be a full line of reeds and reed holders and neck straps.

"I wouldn't mind doing a wine, maybe in Korea. Red wine is very popular over there, and I have a pretty solid following that I think would be interested. But it all depends on me finding some free time to do it."

Q: You have the best-selling Christmas record, but Josh Groban is coming up fast on your heels. If you were in a fight, who would win?

Kenny G: (Laughs) "Well, Josh and I performed together at a dinner party awhile back, and he actually lives pretty close to me. He's a great guy, and I wouldn't want to fight him. I'm happy for his success, and I'd love to do more music with him."

Reuters/Billboard