Liberty Media Applies for Control of Sirius XM Radio

Billionaire media-mogul John Malone and his Liberty Media moved a step closer on Friday to taking control Sirius XM Radio.

In a filing with the FCC, Liberty asked permission to take "de jure" control over Sirius XM, having already failed at an attempt to take "de facto" control. The former requires more than a 50 percent stake in the company while the latter does not.

Liberty purchased 40 percent of Sirius XM when it basically rescued the company from bankruptcy three years ago with a $530 million loan, a prudent investment given that the market capitalization of Sirius XM has swelled to nearly $10 billion since then.

Liberty has been purchasing shares on the open market -- driving the price of the stock higher -- in recent months, so that now it owns 48 percent of Sirius XM. The company said it will purchase more shares and turn its preferred shares into common shares to get over the 50 percent threshold, but not until the FCC approves of its plan to take control of the company.

Shares of Sirius XM rose one percent Friday to $2.56 and are up about 35 percent since Liberty began its quest for control.

If Liberty is successful, it's unknown who would run the company, given that Sirius XM's current CEO, Mel Karmazin, has said he does not intend to work for Malone.

"Liberty Media is qualified to control Sirius XM," Liberty said in its FCC application on Friday. "Liberty Media and its current and previous subsidiaries have held numerous classes of FCC licenses."

Sirius XM on Friday filed a statement with the U.S. Securities and Exchange Commission pledging that it "will cooperate fully with the Commission in its evaluation of the application."

Liberty said it could acquire the necessary shares to own more than 50 percent of the company within 60 days of the FCC's approval.

Seattle Hempfest Organizers Question Marijuana Legalization Initiative

A measure to legalize marijuana would seem just the thing to bliss out the tie-dyed, dreadlocked crowd gathered in Seattle's Myrtle Edwards Park this weekend, but Hempfest organizers and attendees say they're not ready to support the initiative that's on the November ballot. 

The "Protestival" has been a Seattle tradition for 21 years, but this year is especially important because of Initiative 502, would allow licensed distributors in Washington state to sell pot, and could potentially generate $2 million in taxes over the next five years. 

In a surprise move to outsiders, Hempfest, its director and its lawyer have not come out in support of the initiative. They say it's not a true legalization effort and that it has quite a few "poison pills," Hempfest lawyer Douglass Hiatt told ABCNews.com. 

"The mood at Hempfest this year is contentious," Hiatt said. "There's no doubt about it. ... There are a lot of people there that are fighting about whether to support 502 or not, and it's really torn the community up."

According to the "Intent" portion of the measure, it "takes marijuana out of the hands of illegal drug organizations and brings it under a tightly regulated, state-licensed system similar to that for controlling hard alcohol." 

But the initiative's driving-under-the-influence provisions have drawn criticism because it includes a zero THC tolerance for drivers under 21. People are also upset that they won't be allowed to grow their own marijuana for recreational use, according to ABC affiliate KOMO-TV in Seattle. 

Hempfest director Vivian McPeak said the festival as such has no official position on the measure, calling it "very painful and very awkward." 

The festival kicked off Friday and is scheduled to run through Sunday. Its colorful booths are expected to draw 150,000 people this weekend, according to KOMO. There are six stages and hundreds of vendors, Hiatt said. 

The free speech event tends to involve a lot of civil disobedience as attendees smoke pot in the park, but Hiatt said they don't get in trouble for it. In fact, he said the city attorney has said he won't prosecute misdemeanor tickets for marijuana posession. 

"The police and Hempfest have a great relationship," he said, adding that Seattle Mayor Mike McGinn is sceduled to speak at the event. 

Hempfest will debate the initiative in a "Hemposium" on Saturday, as supporters like New Approach Washington battle opponents like Sensible Washington, whichis expected to roll out its own initiative for 2013 and says 502 isn't strong enough to withstand "federal challenges" because it doesn't repeal existing laws.

The Tonight Show cuts staff; Leno trims pay

SAN FRANCISCO (AP) — "The Tonight Show" has laid off about two dozen workers, prompting host Jay Leno to accept a pay cut to spare other staffers as NBC clamps down on expenses.

NBC Universal imposed the cutbacks Friday, according to a person familiar with the moves. The person asked not to be identified because NBC Universal hadn't officially disclosed the cost cutting.

The payroll purge affected about 10 percent of the roughly 200 people who work on "The Tonight Show," still the top-rated late-night program. Viewers shouldn't notice any changes in programming at "The Tonight Show," the person said.

NBC Universal is trying to improve its financial performance under the ownership of Comcast Corp., which bought the entertainment company last year.

Leno had been making between $25 million to $30 million annually as the host of "The Tonight Show." His salary will be reduced to about $20 million after making the job-saving concessions. Leno also brings in substantial income touring as a stand-up comedian.

"Jay's foremost concern is for the wonderful people who work with him at 'The Tonight Show,'" said Bruce Bobbins, a spokesman for Leno. "He did what was necessary to ensure their well-being."

Several other staffers on "The Tonight Show" also absorbed pay cuts.

David Letterman, the host of a rival late-night show on CBS, accepted a significant pay cut in 2009.

The show's cost-cutting measures were first reported by Deadline Hollywood, a website that tracks the entertainment industry.

Comcast bought a controlling interest in NBC Universal for $6.2 billion in cash and several cable-TV channels valued at $7.25 billion. Besides its TV network and several cable channels, NBC also owns the Universal Pictures movie studio and theme parks.

Comcast, which is based in Philadelphia, makes most of its money selling cable TV and high-speed Internet access.

Despite its solid ratings, "The Tonight Show" hasn't been a big moneymaker. That prompted the cuts Friday, which are expected to trim the program's weekly budget by about $600,000, or 25 percent, to $1.7 million. That's back to its levels of a few years ago.

Leno outmaneuvered Letterman to succeed Johnny Carson as "The Tonight Show" host in 1992 and remained in one of television's most sought-after jobs for the next 17 years. At NBC's behest, he left the show in 2009 and was replaced by Conan O'Brien. After a few months hosting his own show in an earlier time slot, Leno returned as "The Tonight Show" host in 2010 in a decision that provoked a nasty fight between O'Brien and NBC.

O'Brien now hosts a late-night talk show on TBS

During Leno's brief stint hosting his prime-time program, his show's weekly budget escalated and wasn't reduced significantly to reflect his return to the late-night slot until now.

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AP Television Writer Frazier Moore contributed to this story.

Minaj cancels UK festival show due to vocal cords

NEW YORK (AP) — Nicki Minaj has canceled her appearance at this weekend's V Festival in the United Kingdom because of damage to her vocal cords.

Her representative says in an email that Minaj will have to back out of her shows on Saturday and Sunday because of "strained vocal cords."

Minaj performed a free concert in New York City on Wednesday, though she had been advised by her doctor to rest.

Her rep now says her voice is "worse," and that recent X-rays show that the singer-rapper must "rest her voice for a few days."

The two-day V Festival also features The Killers, David Guetta, LMFAO and The Stone Roses.

Minaj performed for more than two hours at her New York show. It featured Drake, Lil Wayne and Foxy Brown.

'Expendables 2' brawls to No. 1 with $28.8M

LOS ANGELES (AP) — Sylvester Stallone and his beefy buddies have muscled their way to the top of the weekend box office.

Stallone's action hero roundup "The Expendables 2" debuted at No. 1 with $28.8 million, according to studio estimates Sunday. That's down from the $34.8 million start for "The Expendables" two years ago.

The Lionsgate sequel elbowed out another action tale as Universal's "The Bourne Legacy" fell to No. 2 in its second weekend with $17 million. That was a steep 55 percent drop from its $38.1 million opening weekend, though the movie's domestic total climbed to a solid $69.6 million.

Three other wide releases opened to modest business.

Focus Features' animated comedy "ParaNorman, about a boy leading the fight against zombies that rise from the grave, was No. 3 with $14 million.

Sony's music remake "Sparkle," featuring "American Idol" winner Jordin Sparks and Whitney Houston, was No. 5 with $12 million. The update of the 1976 movie centers on three sisters who form a singing group in the late 1960s.

Disney's family fantasy "The Odd Life of Timothy Green" was No. 7 with $10.9 million. The movie stars Jennifer Garner and Joel Edgerton as a childless couple who become instant parents to a boy that magically appears in their lives.

The newcomers and holdovers combined to lift Hollywood's overall business. Domestic revenues totaled $139 million, up 12 percent from the same weekend last year, when "The Help" led with $20 million, according to box-office tracker Hollywood.com.

Business had been down the previous three weekends this summer, which has fallen short of the record-setting business many studio executives were predicting at the start of the season.

Since the first weekend of May, revenues total $3.9 billion, down 5 percent from last summer's, when Hollywood finished with an all-time high of $4.4 billion for the season, according to Hollywood.com.

This summer delivered huge hits such as "The Avengers" with $617.6 million domestically and "The Dark Knight Rises," which took in $11.1 million this weekend to cross the $400 million mark and edge past "The Hunger Games" to become the year's second-biggest hit.

But other releases such as "Dark Shadows," ''Battleship," ''The Watch" and "Total Recall" were duds that failed to live up to the summer's hype.

With only two weekends left in the season and no obvious hits premiering, it's unlikely that Hollywood will break last summer's record.

"We're winding down the summer and we're in the dog days of August. They're called that for a reason, because we're experiencing the typical summer slowdown, only it seems worse this year," said Hollywood.com analyst Paul Dergarabedian.

"The Expendables 2" also pulled in $17.3 million overseas.

Along with Stallone, "The Expendables 2" cast includes Arnold Schwarzenegger, Bruce Willis, Jason Statham, Chuck Norris and Jean-Claude Van Damme.

While the sequel drew smaller crowds than the first movie, distributor Lionsgate noted that business held up better for the new one in its second day. Revenues dipped only 3 percent from Friday to Saturday compared to 11 percent for "The Expendables," according to Lionsgate.

That's a sign that more first-night fans may be talking up the sequel, which also earned better reviews than the original.

"We believe with solid word of mouth and even critical response to the film, that bodes well for the playability," said David Spitz, Lionsgate's head of distribution. "It's the old, it's not a sprint, it's a marathon."

"Sparkle" was the first movie since 1996's "The Preacher's Wife," for Houston, who died in February. The movie was produced on a small $14 million budget, so it will not be a financial burden to Sony despite its modest earnings.

A star's death often boosts audience interest, as happened with Heath Ledger and the Batman blockbuster "The Dark Knight" or Michael Jackson and the hit music documentary "Michael Jackson: This Is It."

That did not hold true for "Sparkle," in which Houston had a supporting role as the stern but loving mother of the three singers.

"I don't think that was ever in the cards where there was this sudden interest in seeing the movie," Dergarabedian said. "There didn't seem to be that kind of, 'oh, it's Whitney Houston's last movie, we've got to go see it' attitude."

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.

1. "The Expendables 2," $28.8 million ($17.3 million international).

2. "The Bourne Legacy," $17 million ($18.2 million international).

3. "ParaNorman," $14 million ($2 million international).

4. "The Campaign," $13.4 million.

5. "Sparkle," $12 million.

6. "The Dark Knight Rises," $11.1 million ($20.6 million international).

7. "The Odd Life of Timothy Green," $10.9 million.

8. "Hope Springs," $9.1 million ($700,000 international).

9. "Diary of a Wimpy Kid: Dog Days," $3.9 million ($867,000 international).

10. "Total Recall," $3.5 million ($19 million international).

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Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:

1. "The Dark Knight Rises," $20.6 million.

2. "Total Recall," $19 million.

3. "The Bourne Legacy," $18.2 million.

4. "The Expendables 2," $17.3 million.

5. "Brave," $14.4 million.

6. "Ted," $11.8 million.

7. "Ice Age: Continental Drift," $10.1 million.

8. "Step Up: Revolution," $9.2 million.

9 (tie). "The Avengers," $6.7 million.

9 (tie). "The Thieves," $6.7 million.

Madonna Sued for millions over Gay support

MOSCOW (AP) — Some Russian activists have sued Madonna for millions of dollars, claiming they were offended by her support for gay rights during a recent concert in St. Petersburg.

Anti-gay sentiment is strong in Russia. In St. Petersburg, a law passed in February makes it illegal to promote homosexuality to minors, and the author of that law has pointed to the presence of children as young as 12 at Madonna's concert on Aug. 9.

Russian news agencies quote Alexander Pochuyev, a lawyer representing the nine activists, as saying the suit was filed Friday against Madonna, the organizer of her concert, and the hall where it was held, asking for damages totaling 333 million rubles, or nearly $10.5 million.

Responding to criticism that the plaintiffs were stuck in the Middle Ages, the lawyer said they were using civilized, modern methods to defend their rights. "No one is burning anyone at the stake or carrying out an Inquisition," Pochuyev was quoted by RIA Novosti as saying. "Modern civilization requires tolerance and respect for different values."

The complaint includes a video taken at the concert showing Madonna stomping on an Orthodox cross and asking fans to raise their hands to show the pink armbands in support of gays and lesbians that were distributed among the audience, the new agency reported.

Madonna's spokeswoman, Liz Rosenberg, did not immediately respond to emails asking for the singer's reaction to the lawsuit.

Madonna also has angered conservative Russians with her support for Pussy Riot. Three members of the punk band were sentenced Friday to two years in prison for a protest inside Moscow's main cathedral against Vladimir Putin and his cozy relationship with the Russian Orthodox Church.

Madonna spoke out in support of the group during her concert in St. Petersburg and two days earlier in Moscow. After the verdict was issued, Madonna called on "all those who love freedom to condemn this unjust punishment."

Kamal Jabbar on Building the BlackMarket Records Brand “It was real hard work...”

Kamal Jabbar  Photo Courtesy Palace Music Group

“It was real hard work,” says Kamal Jabbar, CEO of Palace Music Group, LLC. “Listen making product on your own from the creative concept, then marketing and promoting the CD, hiring a staff, finding your own distribution, collecting your own royalties, as well as, dealing with promoters.” “You’ve got work to do.”

“When I started in the music business it was with Black Market Records they had just inked a deal with Priority Records to manufacture and distribute their records. Prior to that, Black Market Recs was a true independent. We manufactured and sold records and cassettes tapes out of the garage, the trunk, the backyard, you name it. We did 4 x 6 postcards and poster marketing of the Black Market brand product. Then finally came and office and warehouse,” claims Kamal.

“At Black Market we soon discovered the difference between an independent that manufactured pressed and marketed its’ own product and one that recorded music and then strikes a deal with a major distributor or record company.” “Profits!” Kamal states.

“I came in as the GM to the CEO and continued to push the underground music independently, it was a harder grind with less visibility but it garnered greater profits. Ced liked me because I could collect from distributors. I know how to send out invoices, and letters professionally. I have excellent follow-up, he says. “I created my position to go beyond money.” “When you market underground you don’t go to the parent company (Priority) for money. They don’t tell you which single to release either. You’re not set to a bunch of limitations or restrictions they tend to set per fiscal year.” “When I think back,” Kamal explains. “Those early years, where the most informative years for me in the music business. I learned to market and promote our products and manage budgets and then had to decide with the help of CED, "Cedric Singleton", whether to spend the bulk of the independent profits on marketing or production. We would spend the budget on magazine ads and stickers as well as posters. Remember, we where independent, nothing for the record company to recoup, but everything we earn is now gross. You have to remember, to deduct your advertising, the expenses for making the CD, any marketing, we under went from the $8.00 per CD.” Kamal says. “All we really wanted to do was make music, earn money and have Priority supply tour, production, distribution as well as, media support. With that we figured we would be able to boost our buzz creatively. And work our way up to some good dough.” “But it was a grind. Now days, these kid’s have got the internet to grind on. But it’s just that, a grind.”

“Rapping simply isn’t enough anymore. These days Hip Hop artist have to hustle and develop name value. I’m old school I think you have to dedicate time to developing artist. The artist who develops his or her craft of putting together an outstanding performance should get the deal. Now days more artists are signed before the artist are ready. The time spent on the grind makes artist seasoned in the game. This seasoning can be seen in all big artists with superstar status.” 

PALACE MUSIC GROUP, LLC ®