Recording Industry

Artists and fans lined up to give thanks to a music mogul for years of support and cherished records upon his retirement from the business. No, Clive Davis is not packing it in. If he ever does, the send-off will be a huge gala with the biggest names in the pop world paying tribute. This event was at the tiny Silver Lake club Spaceland the musicians on hand last Friday for the most part hardly known outside of indie-hipster circles.

U.S. album sales fell 17% in the first quarter as rising online piracy and fewer new hits accelerated the music industry's decline. Retailers sold 117.1 million albums in the three months that ended April 1, researcher Nielsen SoundScan said Thursday. Nielsen said Universal Music Group retained its lead with 32% of U.S. new-album sales. Although online purchases rose, they failed to make up for rising piracy and declining demand for compact discs. Album sales fell 4.9% last year after a 7.

CALL it the "Hips Don't Lie" effect. Last year, Epic Records held a contest offering fans a chance to help create a video for Colombian pop diva Shakira's yodel-tastic single of the same name featuring Wyclef Jean. Label executives' expectations were low -- they were spending only $5,000 to create and promote a quickie clip, after all. But the impact of that effort sent shock waves through the music industry.

Universal Music Group revived its Mercury label in the U.S. and named Sony BMG Music Entertainment executive David Massey as president. Mercury, whose roster once included John Mellencamp and Kiss, will be part of the New York-based Island Def Jam Music Group, Universal said. Mercury will operate separately in Britain.

U.S. music sales declined 6.2% in 2006, as higher digital revenue failed to counter illegal copying and a drop in purchases of compact discs. Retail music sales decreased to $11.5 billion last year from $12.3 billion in 2005, the Recording Industry Assn. of America said Tuesday. In contrast, sales of albums downloaded to computers doubled.

Snoop Dogg settles into the control room of a massive Los Angeles recording studio. The lanky rap star, dressed casually in a black-and-red athletic jacket and a gray knit cap, looks tired after just returning from a European tour with Diddy. But Snoop quickly comes alive when talk turns to his new compilation album, "The Big Squeeze," which marks two milestones for the musician and mogul.

Warner Music Group Corp. agreed to use technology from Napster founder Shawn Fanning to sell song downloads on websites including MySpace.com. Warner is the first major recording company to sign such an agreement with Snocap Inc., Fanning's San Francisco-based digital-rights technology firm, the companies said in a statement.

China, Russia and 10 other nations were targeted by the Bush administration Monday for failing to sufficiently protect U.S. producers of music, movies and other copyrighted material from widespread piracy. The Bush administration placed the 12 countries on a "priority watch list," which will subject them to extra scrutiny and could eventually lead to economic sanctions if the administration decides to bring trade cases before the World Trade Organization.

After the Beatles arrived on the scene, Frankie Avalon, whose hit "Venus" was the last No. 1 song of the 1950s, watched sadly as fans ditched syrupy pop for rock 'n' roll. "I figured that was over," the 66-year-old crooner said about his recording career. Avalon went on to star in movies of the beach party genre. His music was relegated to discount bins in record stores and the playlists of oldies stations.