MTV shuts Urge, teams with Rhapsody

When Microsoft launched its Zune media player and companion Zune Marketplace digital store last November, things didn't look good for Urge, the Microsoft-powered digital store from MTV. It took 10 months, but the other shoe dropped today, as MTV announced that it has shut down Urge and has opted for a partnership with Real's Rhapsody music service.

Under the terms of the deal, MTV Networks and Real have formed a new company called Rhapsody America, a move that signals an attempt to dent the lead of Apple's iTunes, the dominant force in digital music.

"Today's announcements represent a sea-change in the digital music market," RealNetworks CEO Rob Glaser said in a statement. "By partnering with MTV Networks, home of the most storied brands in music history, and the market's leading wireless company, Verizon Wireless, we'll make Rhapsody the premier digital music service that delivers great music to millions of consumers whenever and wherever they want."

Verizon will serve as the mobile platform for the integrated MTV-Rhapsody service. The service plans to be integrated in time for MTV's Video Music Awards, which air live on Sept. 9 from Las Vegas. Starting today, Urge customers can use their existing usernames and passwords to log in to Rhapsody and access both services. Rhapsody customers will also be able to access content from MTV, VH1, and CMT within the service.

Universal unveils its own mixtapes

Hoping to step into the void caused by the RIAA's campaign against DJ mixtapes, Universal Music Enterprises has released its own would-be line of bootleg recordings that seek to break new artists and new songs. Universal has created a series titled "Lethal Squad Mixtapes," expected to retail for $5 to $6.

But unlike the popular mixtapes from big-name DJs like Drama and DJ Whoo Kid, the initial Lethal Squad Mixtapes: Dose #1, mixed by DC-based newcomer DJ Bear, includes only a handful of songs from well-known rappers along with unknowns like Young Chris and Jae Ellis. It has sold only 5,800 units, according to Nielsen SoundScan.

The move comes on the heels of the RIAA-led raid of the studio of mixtape kings DJ Drama and Don Cannon and the seizure of most of the inventory at the property. Drama and Cannon were arrested on racketeering charges. "How ironic," DJ Drama told Billboard. "I guess they've realized just how important mixtapes are."

Jobs to be inducted into Calif. hall

Apple CEO Steve Jobs will be inducted into the California Hall of Fame, joining a dozen others, including baseball Hall-of-Famers Jackie Robinson and Willie Mays.

California first lady Maria Shriver announced today that Jobs, Robinson, and Mays would be inducted, along with photographer Ansel Adams; former governor and Supreme Court Chief Justice Earl Warren; comedian Milton Berle; winemaker Robert Mondavi; actresses Rita Moreno and Elizabeth Taylor; Dr. Jonas Salk, who developed the polio vaccine; author John Steinbeck; actor John Wayne; and golfer Tiger Woods.

Group: Music piracy costs $12.5B

The impact of music piracy on US consumers and taxpayers is intensifying, according to a probusiness conservative think tank. The Institute for Policy Innovation (IPI) issued a report today that valued the economic damage caused by illegal music file-sharing at $12.5 billion. The report also indicated that music piracy has caused the loss of 71,060 jobs annually.

As a result of music piracy, the US government loses at least $422 million in tax revenues, including $291 million in personal income tax and $131 million in lost corporate income and production taxes, according to the report.

"Piracy harms not only the owners of intellectual property but also US consumers and taxpayers," Stephen E. Siwek, the report's author, said in a statement. "Moreover, the impact of music piracy appears to be intensifying." IPI is a research group based in Lewisville, Texas, and was founded in 1987 by former Congressman Dick Armey.

Branson sells Virgin Megastores

In another sign of the changing dynamics of the music landscape, Richard Branson's Virgin Entertainment Group has reached a deal to sell its chain of 11 Virgin Megastores in North America to Related Companies, a real-estate development firm. Financial terms of the deal, which is expected to close in September, were not disclosed.

"With most of our global retail operations now franchised, Virgin Group will continue to focus on being a global leader in transportation and renewable energy, with interests in financial services, communications and media, health, and leisure," Branson said in a statement.