Newsletter #55 September 2008
LET’S SELL RECORDED MUSIC!
If you needed any more proof that for consumers the music-buying horse had long bolted, Anna Goss’ bald statement of fact, “Get over it (filesharing), it’s getting boring now” at July’s MusicTank Millenials event should have nailed the point home.
Here we had a bright, articulate girl with enough interest in the music business to attend a discussion on its future, seeing little reason to pay for a majority of the music she listens to. You can imagine the opinion of your average rat-faced hoodie listening to tinny funky house on the back of the bus…
A mere decade since Napster burst onto the scene, the recordings business finally caught up with the independent mindset, accepting the convenience / interoperability argument and dropping DRM in favour of high bit rate MP3s, with just last week 7 Digital becoming the first download store in Europe to offer MP3s from all the major labels. Back in 2006, MusicTank came under considerable pressure for even holding a discussion on the subject.
Of course this is only the beginning of the fightback to reduce that daunting 20:1 ratio (illegal:legal).
On quality, it’s still often the case that the MP3s circulating on music blogs and torrent sites are of a higher bit rate than many digital download stores offer. On price, Terry McBride reckoned the business should experiment, arguing that as the price drops, a tipping point would be reached whereby the number of people paying for downloads would quickly rise, more than compensating for the lower unit cost and raising the overall value.
It’s easy for MusicTank to theorise – in a mature business where many jobs have already been lost, it’s understandable that any experimental steps are small and carefully taken.
The big issue is still, however, filesharing, and thanks in no small part to Guy Hands, the government this year stepped into the fray offering to unsheathe its legislative sword to cut through this Gordian knot. With action taking place on three fronts of education and awareness, a sanction system for repeat infringers and progress towards compelling legal alternatives, there has never been a more focused period of activity on the subject.
Committed to fostering innovation, MusicTank is devoting this Autumn’s entire programme to that third area of activity: facilitating development of legal alternatives that give music fans what they want in a way that sees artists rewarded for their efforts.
The issues at play are fascinating, ranging from what consumers want and expect, where technology is going, to how best to licence future business models. With the impending launch of the Featured Artists Coalition lobbying for greater transparency in digital deals and licensing hurdles still facing MySpace Music, the internal issues are complex enough before we even consider the differing views of ISPs, music fans and developments in technology.
Still, difficult as the issues are, the window of opportunity is now, and MusicTank believes with the right leadership the recordings business still has a bright future and so should you. So we hope you can join us for what will perhaps be our most exciting and important programme yet.
Editorial by Sam Shemtob and John Power
OUT & ABOUT: MusicTank Events
Please remember all MusicTank events MUST be booked and paid for in advance! Become a member of MusicTank and enjoy priviledged discounts on all MusicTank events…
21 Oct | 4 & 18 Nov | 2 Dec: Let’s Sell Recorded Music!
Illegally downloaded any music recently? Given that nearly two thirds of all internet traffic is made up of P2P activity these days, if you haven’t, then most young people you know are. Since Napster first reared its head in the late nineties, the recorded music business has tried in vain to put the genie back in the bottle. The result – some pr blunders and an estimated 20:1 illegal/legal download rate.
For music fans it’s been a golden age where hard to find and out of print releases have been readily available alongside the latest hits of the day, but with no way of monetising these streams the record labels have been forced to watch their profits dwindle while the world’s been moving online.
The UK government has taken notice and is overseeing a three-pronged initiative aimed at educating and developing awareness, dealing with the most serious infringers and facilitating legitimate offerings.
This series will focus on that third prong: effective legitimate alternatives. Over the course of the four events we will review what people want, where technology is heading, what the most plausible new models are and how they might be licensed.
BOOKING: Each session may be booked individually at the usual rates (£20 MusicTank Members | £25 Trade Body | £30 Full Price).
A series discount for all four sessions is also available, with the following discounts applying…
£70 MusicTank Members – save £10 | £85 Trade Body – save £15 | £100 Full Price – save £20
To get the series discount, visit:
To book for events individually, please follow the links below.
Venue: All sessions take place at the MCPS-PRS Alliance, Berners Street, London Time: 18.30 – 21.00hrs.
PROGRAMME: Speakers for all for sessions will be announced shortly!
Think Tank 1 – Here We Are Now, Entertain Us
Tue 21 Oct
Kicking off the series, we take a long hard look at what music consumers actually want and how this tallies with the status quo and raft of new services in various stages of development or launch. Will we see monolithic music portals dispensing entertainment with all the charm of a Wal-Mart, or will they incorporate some of the sharing and word-of-mouth qualities that the internet does so well? Will each ISP run its own service or will there be several operations each serving their own niche communities? Which models are likely to be most compelling and hence fly with music fans? And finally, what of the companies who have spent several years and fortunes building up legal download services – how can they adapt to a world where music is bundled to the consumer in a feels-like-free way?
Think Tank 2 – We Have The Technology, What’s The Solution?
Tues 4 Nov
How can technology enable licensed services to develop some of the functionality of existing unlicensed sites? How reliably can we sample and identify internet traffic for managing tracking and payments? Is this only possible within a walled-garden system, or is the technology available to monitor all traffic for accounting purposes? How might this sit with the notoriously privacy minded torrent communities? What are the benefits and pitfalls of using deep packet inspection and can this work for encrypted content? Is copyright filtering on a network level desirable or possible?
Are there more creative, compelling or enduring models out there? What can we learn from some of the more advanced licensed P2P platforms such as Korea’s Soribada? What about licensing the end user or the access point, à la Noank, rather than the delivery platform? Might this enable music fans to continue to with their consumption habits and trusted filters in a way that better utilises the internet’s potential?
How does the blue-sky models square with the needs of ISPs and device manufacturers? What kind of ISP might be interested in developing content services anyway? And would they look to do so themselves or rather to provide a platform for third parties? And how many kids are right now in their bedrooms cooking up new ideas that will do to P2P what Napster did to the traditional business? Can we develop more futureproofed solutions or are we forever doomed to play catch up?
Think Tank 3 – Coalition Of The Billing
Tue 18 Nov
What’s the best way to license these new services? Labels are now ready to license as widely and flexibly as possible yet understandably wish to control the value they place over their rights, especially when ISP music services may one day provide their major income stream for recorded music. Might collective licensing through a mandated body enable the widest range of music to be legally available, from finished studio recordings to live bootlegs, radio sessions and mash-ups? Or is that incompatible with the business needs of rightsholders, leaving such content doomed to continue to exist unlicensed?
How will future licensing vary between streams, on-demand streams and downloads when technology is increasingly causing the three to converge? How can we streamline and simplify the process for licensees, is it desirable or possible to create one-stop joint ‘master and composition’ licenses to make everything easier? Will labels increasingly extend vertically into the businesses they are licensing, such as MySpace, and how will monies track back to artists?
Think Tank 4 – Squaring The Circle
Tue 2 Dec
The final think tank will look to pull together the conclusions from the series.
How can the different stakeholders better understand each others’ needs in order to develop the most effective and compelling new services? Is further consumer research necessary? What can be modeled and test-marketed? How might UK platforms be affected by developments in other territories? And how could the film, TV and software industries plug into these new models?
In scoping areas for further development, MusicTank will facilitate consultation, analysis and research required to better inform the conversations that will deliver real innovations and help square the circle.
JOE POX: Eurovision
With Joe away, we have appointed a suitably cynical and bile-laden replacement – meet James Pain (Speaks His Brain)…
With the constant tide of bad news the media spoon-feed us these days it was a relief to hear this week of a much-needed overhaul at that august institution, the Eurovision Song Contest.
Originally conceived as a way of ending the bloodshed of World War II, Eurovision has over the years been responsible for events such as the fall of the Berlin Wall, and the collapse of communism. Sadly though, in recent years as thousands of ex Soviet states flooded the contest with their turbo-folk and suspiciously Balkan voting practices, the lustre has come off to the point where even genial host Terry Wogan has been forced into self-imposed exile.
With 2008 winners Russia hosting next year’s event the spectre of a resurgent bear, egged on by its cowed satellite states, trampling the good citizens of Europe underfoot to a soundtrack of tacky Hi-NRG pop looked ever more a reality. Thankfully though, for fans of democracy and anglo-saxon pop nous, in a bid to restore some honour to the contest, 2009 will see the return of judges, who will in no way whatsoever be inclined to carry on voting for their neighbours at all.
Ineffective maybe, but at least it might cheer up old Terry, still I’d recommend the UK judge steers clear of any suspiciously glowing sushi he’s offered.
LIFE AFTER MCBRIDE: Following The Road-Map
Following Terry McBride’s artist road-mapping exercise during July’s Millennials conference, this column marks the first update from manager Amul Batra on the progress of artist James Yuill, and of life after McBride…
“A lot has happened for James Yuill following Terry Mcbride’s live road-mapping experiment. A simple way to judge progress is by taking a look at James’ MySpace figures. On the day of the experiment (17 July) James had 3049 friends: today he has 3648 – 600 new found friends.
This jump in popularity has probably a lot to do with the fact that James’ single ‘This Sweet Love’ is currently at radio (B list at 6Music, Zane Lowe session confirmed, Rob Da Bank album feature confirmed), the release of his first commercially available album is imminent with great press coming in from NME, The Guardian, The Times, Mixmag, Clash and around 25 live dates scheduled in the next six weeks. However, it would be great to think that some of his new buddies have come as a result of the work that has been put in by James in direct response to the advice offered by Terry back in July.
The first thing that James did after the event was set up his own blog (http://www.jamesyuill.wordpress.com/). He also created a Flickr account (http://www.flickr.com/photos/28909101@N02/) and added Google Analytics to his now simplified website (http://www.jamesyuill.com/) and added a ‘blidget’ function to his MySpace page so that his visitors can see when his blog gets updated.
Whilst getting to know the blogosphere, he found, entered and won a remix competition on the Discobelle blog for the Roots Manuva’ track ‘Buff Nuff’ (http://www.discobelle.net/2008/08/19/we-got-a-winner-2/). Discobelle in turn asked him to provide a mix tape for a feature on their page. His mix has since been downloaded over 2000 times (http://www.discobelle.net/2008/09/05/mixin-it-up-james-yuill/).
Since the experiment James has completed the aforementioned remix for Roots Manuva and delivered commissioned mixes for Tilly & The Wall, Sam Issac and Red Light Company. With two more mixes in the pipeline and remixes for A. Human and Rod Thomas also currently doing the rounds, it is likely that some of James’ new found friends are fans of one of these acts.
We also came up with an idea to do a special gig with two of James’ fellow modern troubadours Rod Thomas and Sam Issac. This took place at The Water Rats at the start of September and the event created on Facebook had over 1000 invitees. (http://www.facebook.com/profile.php?id=590010315#/event.php?eid=31060182726)
Additionally, James fansourced the artwork for his album and single and is going to make a video diary of his upcoming tour, having decided to take a film maker friend on the road instead of a tour manager. We are also planning a fan-sourced remix competition. This may not be quite so urgent right now as out of the blue last week, Norwegian house producer extraordinaire, Prins Thomas, posted up a little re-edit of ‘This Sweet Love’ onto James’ record label’s website. An amazing and free, unexpected James Yuill asset.
There is more of Terry’s roadmap that we will be putting into practice over the coming months. Especially on the more directly commercial side and in terms of James Yuill asset creation and distribution. I will have another update for you towards the end of the year, once James has arrived back from his first UK tour.Following Terry Mcbride’s live road-mapping experiment,
INDUSTRY DIARY: Other Music Industry Events
23 Sept: EconMusic
Hosted at the natural History Museum and organised by paidcontent.org, EconMusic is a UK ‘first’ for paidcontent’s parent company, ContentNext. This seminar will bring together leading digital media, music and investment figures and will focus on the key strategic issues surrounding the emerging economics of digital music: evolving business models, audience behaviours, threats, opportunities, and more. The programme targets leading digital media, music and investment figures and is designed to promote knowledge sharing and encourage networking.
Confirmed speakers inc. musician Billy Bragg; David Courtier-Dutton (Slicethepie); Ben Drury (7Digital); David Hyman (Mog); Mark Mulligan (JupiterResearch); Erik Nielsen (Intact Records/Racket Records); Will Page (MCPS-PRS); Martin Stiksel (Last.fm); others tbc
05-07 Oct: In The City
Manchester’s international music industry event returns in 2008, bigger and better than ever. Hosted by legendary Rolling Stones manager Andrew Loog Oldham, this year’s keynotes include Seymour Stein, Andrew and Richard Gottehrer, Lyor Cohen and Jazz Summers, iconic music photographer, Kevin Cummins, filmmaker extraordinaire Dick Carruthers, UK Culture Secretary, Andy Burnhamand founder of Big Champagne, Eric Garland – with more to be announced.
By night, ITC will see 49 of the best unsigned bands in the world alongside showcases by NME, Xfm, Heavenly Records, Fierce Panda, Drowned In Sound, Clash Magazine, Rock Sound, Popjustice, Twisted Nerve and more – including The Durruti Column’s 30th anniversary concert and a very special show to be announced soon.
For more information, to check out the bands, see the lineups or to register for a pass:
05-07 Oct: Un-convention
A new music conference held in Salford and aimed specifically at the grass roots of the industry, the goal of Un-convention is to bring together like minded individuals to discuss the future of Independent music. One to watch.
08-10 Oct: Popkomm
Based in Berlin, Popkomm is firmly established as a key music and entertainment business meeting place combining industry conference, trade fair and music festival.
09-10 Oct: Live UK
Now in its second year, the LIVE UK Summit is dedicated to uniting and supporting the country’s burgeoning contemporary live music industry. Organised by Live UK Events, sister company to Audience Media – the publisher of Audience and LIVE UK magazines – this summit brings together a broad spectrum of live music-associated companies and individuals, giving them the opportunity to share insights and debate topical issues during a series of sharp, well-managed conference sessions. The conference aims to help companies and individuals in the live sector grow their businesses through expanded knowledge, broader contacts and a reinforced self-belief.
Speakers include multinational booking agency boss Neil Warnock (The Agency Group); Dave Chumbley (Primary Talent International); Paul Boswell (Free Trade Agency); Stuart Galbraith (Kilimanjaro Live) as well as Matt Cook(MTV) , Jim Benner (XFM) and outspoken secondary ticketing pioneer Eric Baker (Viagogo).
The conference takes place on 9-10 October at the Radisson SAS Portman Hotel in London. Students and members of some industry organisations are entitled to registration rate discounts.
27-29 Oct: MUSEXPO Europe
MUSEXPO will host a top line-up of speakers and live performers from all over the world for its first annual European conference taking place at London’s Cumberland Hotel.
The conference debates are set to focus on all the issues affecting the business, with senior executives confirmed from right across the international industry including Ged Doherty (Sony Music), George Ergatoudis (Radio 1), Bruce Flohr (ATO), Nick Gatfield (EMI), David Goldberg (Benchmark Capital), Harvey Goldsmith, Nic Harcourt(KCRW, LA), Shabs Jhobanaputra (Relentless), Mark Jones (Wall Of Sound), Jeremy Lascelles (Chrysalis), Alex Patsavas (Chop Shop), Steve Schnur (Electronic Arts) Steven Stewart (Nokia) and a rare opportunity to hear from one of the greatest songwriters of our time – Diane Warren. Tommy Ramone will also be in conversation with Seymour Stein discussing the life and times of one of the most influential rock bands ever.
Among the many signed and unsigned bands showcasing will be Cocknbullkid (UK), Polarkreis 18 (Germany), Laura Izibor (US), Young Lovers (Australia), The Travelling Band (UK), Dune (Denmark), Natalia Lesz (Poland), Boxer Rebellion (UK) and JukeBox Vandals (UK), winner of the Xfm Unsigned contest.
Registration for MUSEXPO Europe includes complimentary networking breakfasts, lunches and evening buffet/cocktail parties, as well as all the conference and showcase events.
SEMINARS & NETWORKING
24 Sept: Music And Media Networking Evening (AIM)
Location: Sound, 1 Leicester Square, London
Cost: £10 AIM members, £30 non-members (with 20% discount for members of affiliates). This price includes VAT and free drinks whilst stocks last.
AIM’s popular Music and Media Networking Evening is back, giving you the chance to network with the key players from the media industry – including tv, press, radio and online.
Access to media is one of the key challenges faced by independent labels today – our members told us that in the AIM annual membership survey last month. So come along to this event and meet all the key movers and shakers who can get your music on the airwaves, tv and press.
Confirmed attendees already include: The Independent, Classic Rock Magazine, The Guardian, Metal Hammer Magazine, Jazz FM, BBC, Bebo and Billboard – many many more TBC!
29 Sept: MPA/MMF Training Management Development Programme
Module 1: ARTIST & RIGHTS MANAGEMENT IN THE DIGITAL AGE: Practice versus Theory & Ringing the Changes
Location: Copyright House, Berners St, London, W1
Making a living: who’s paying the bill?
Teamwork: working with the record / entertainment companies – not against!
Musical chairs: 360 degrees comes full circle. What’s actually happening right now, and who’ll end up in Court?
Big business, little artist: this doesn’t involve you. What? What music publishing can teach the rest of us
New right, no change: does it matter?
How we can learn from America, and what America can learn from us
Speakers confirmed so far include Tim Clark, Music Ltd. (Clients include: Robbie Williams, Sia, Archive, Craig Armstrong, The Casuals, Passenger, The Asteroids Galaxy Tour, Winona), Korda Marshall (MD, Warner Bros. Music) and Mark Ashelford (Lee & Thompson).
To book: mailto:email@example.com
28-29 Oct: MPA Induction Course For Newcomers To Music Publishing
Location: British Music House, 26 Berners St, London, W1
The MPA Induction Course is an essential overview of the music publishing industry, its organisations and their roles. It is ideal for those new to the music industry or those familiar with other areas of the business but who would like an introduction to the wonderful world of publishing.
The next course will take place on Tuesday 28 October 2008 from 9.30am – 4.30pm and Wednesday 29 October 2008 from 9.30am – 1.30pm. Places cost £130+VAT for MPA members and £210+VAT for non-members. The price includes lunch on the first day, and refreshments throughout.
To register or for more information, visit:
MUSICTANK LOUNGE: Event Archive & We Liked This...
MusicTank event podcasts and transcripts can be found in both the Podcast section on this site, and on events pages themselves. This premium content is only available to MusicTank Members who pay a small annual fee to subscribe. Membership confers other benefits, too. To join or to read more about our Membership offer:
Recent additions to the archive include:
FACE TO FACE WITH THE MILLENNIALS – Podcasts and Transcript
Terry McBride Keynote (60 mins); MTV & Popscores Presentation (15 mins); Tom Robinson’s Millennials Panel (45 mins); Artist Road-Map with James Yuill (90 mins).
TERRY MCBRIDE…on price-tipping points…suing filesharers…and the value of ‘free’…
“I look at this debate going on in the media about the music business. Physical sales are down – I think it’s 5% – this year it’s more like 15%, and digital sales – gross dollars – is not making up for that difference. The last time I looked, any company that had a bottom line focused on net profit, not on gross dollars. I for one know that the profit margin inside the digital space is about 300% of that of the physical space. So that tells me at a certain point you’re going to hit a tipping point where physical continues to go down more than digital goes up and yet the company becomes more profitable…”
“We saw we were never going to win this battle of litigation, we were never going to win a battle of legislation. I believe that legislation works in a business-to -business relationship, as that can change behaviour, but legislation or litigation I have yet to see work in changing the behaviour of millions to tens of millions of people…”
“What is the value of free? In the digital space anything that can be copied has zero value, anything that’s scarce has huge value. So what’s scarce? Well you can’t copy an artist, so the actual person – that essence – is scarce, so access to that essence is scarce and has huge value, so you can build a whole platform around that – you can create a brand and all the various verticals around that brand and have those be part of what you build by giving away music…”
MILLENNIALS…on the justification not paying for recorded music:
ANNA – “We’re watching the films their music is sync’ed in, we’re buying the NIKE+ runs that are only available in iTunes, we’re posting on blogs, we’re buying their t-shirts and going to their shows. The money is not in recorded music anymore, you all need to come to terms with that, as it’s getting really boring now.”
CHRIS – “The value added now has to be more than the song because at the moment I have the choice of paying something or paying nothing, so what am I getting that won’t make me look stupid in front of my friends. What are you giving me that is better than free?”
CELESTIAL JUKEBOX: FREE STREAMS OR PIPE DREAMS? – Podcasts and Transcript
RYAN REGAN – LAST.FM
“Every deal we’ve struck and every deal we’re trying to strike, including the one we’re negotiating with Merlin, covers all back payment for any streaming that took place before…Streaming is a very small part of Last fm – I don’t think its right to say that our value was based just on that.”
CLIVE GARDINER – WE7
“The biggest challenge they [ad-funded platforms] have faced so far is getting advertising money to fund it. The ad industry is not rushing to embrace these models and general display ads will not produce enough revenue. The future, they believe, lies in targeted premium advertising.”
JEZ BELL – MCPS-PRS ALLIANCE
“What happens when a download becomes indistinguishable from a stream? A hierarchy of value has been set but when there’s no difference how does that affect this? It forces us to think about how licensing models go forward.”
ALEX VLASSOPULOS – SONY BMG
“…we have to explain to a hell of a lot of artists why it is they don’t get as much as they think they should. We have to persuade them it’s good for them. We need to see commercial value in these deals. The value is in the music, we hold the cards and we need to respect the artists and make sure they get what they deserve.”
We Liked This…
With near daily announcements of artists both big and small pursuing all things DiY, in his Juggernaut Brew blog, consultant Keith Jopling discusses the 18-year trajectory of Mercury Prize winners, Elbow, citing their label as central to their success:
For those of you who’ve already got iTunes 8, here are some tips to get the most out of its Genius (music recommendation) feature…
WHEEL OF FORTUNE - Innovation And Enterprise
Peoplesmusicstore.com – Open All Hours
Carrying on our occasional series looking at new ideas in the music industry, this month we’re casting our eye over the recently launched Peoplesmusicstore.com.
Set up by some of the team behind the award winning Bleep.com digital music site, Peoplesmusicstore.com is an innovative approach to online music sales that sees the public become not only the consumer but also if they wish, the vendor of music. Focusing on more leftfield genres from ambient techno to obscure psychedelic funk, the site allows users to create their own virtual shops built up from a database of centrally available tracks. Within their individual stores users can arrange their tracks into whatever sections they want, add descriptions and reviews of tracks and generally promote the music that they care about. When people then buy tracks from these stores the ‘shopkeepers’ earn credits which can then be spent on downloads.
It’s a clever idea that embraces all that we’ve learned in recent years about the power of social networking and already seems to have caught on with scores of stores already setup (including for research purposes our own ‘Cash or Exchange?’). By encouraging personal recommendations and social interaction, breaking down the traditional barriers between vendors and consumers, Peoplesmusicstore.com succeeds in creating a whole new model for digital music retail that sidesteps the current preoccupations with pricing structures to deliver an actual shopping experience, something noticeably missing from torrent sites and even more established legal alternatives.
Knowledge Connect – New funding available to help innovative businesses
A pioneering scheme that encourages small and medium-sized companies to work with university academics has been launched by the London Development Agency.
Knowledge Connect provides London-based companies with less than 250 employees the opportunity to apply for innovation vouchers worth £3,000 or £10,000 which can be used to pay university experts to deliver a solution to a business problem, allowing you to concentrate on the day-to-day running of your business.
Addional information; Denis Carroll at the University of Westminster, tel 020 7911 5865 and:
WISE MONKEY: musicmagpie.co.uk
“Each year, over £21m in old CDs are thrown away in the UK when they could be converted into cash…” – so says spokesperson for Magpie, an interesting online service that lets you convert your old or unwanted CDs into cash. Launching earlier this year, the site pays between 25p and £3 each for CDs that users send in (postage free) via its free trade-in service. To-date, its 4’000 registered users have bagged £147’000.00
To find out what your CD might be worth, simply type in the barcode number from the discs you want to sell – the website will search its database and make a cash offer for each one.
That's all for this issue - 'til next time...
If you have any queries regarding any of our events or activities, please call us on +44 (0) 20 8357 7317, or email: firstname.lastname@example.org
The views and opinions expressed are those of the author and are not necessarily condoned or shared by MusicTank. MusicTank is a non-profit organisation owned and operated by University of Westminster. University of Westminster is a charity and a company limited by guarantee. Reg Number: 977818, England. Registered Office: 309 Regent Street, London, W1. MusicTank is based at University of Westminster, Watford Road, Harrow, Middlesex HA1 3TP
Sections Below:OUT & ABOUT: MusicTank Events
JOE POX: Eurovision
LIFE AFTER MCBRIDE: Following The Road-Map
INDUSTRY DIARY: Other Music Industry Events
MUSICTANK LOUNGE: Event Archive & We Liked This...
WHEEL OF FORTUNE - Innovation And Enterprise
WISE MONKEY: musicmagpie.co.uk
That's all for this issue - 'til next time...
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