People magazine says Channing Tatum is sexiest man

NEW YORK (AP) — Channing Tatum is People magazine's "sexiest man alive" for 2012.

The 32-year-old actor says his first thought on hearing the news was: "'Y'all are messing with me.'"

Tatum's film roles include "Magic Mike" and the upcoming "Foxcatcher."

Other actors who have received the "sexiest" label include George Clooney, Matt Damon, Brad Pitt, Johnny Depp and Ryan Reynolds. Last year's "sexiest man" was Bradley Cooper.

People announced its 2012 list Wednesday.

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Online:

http://www.people.com/people

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Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

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Why an election that brought in the status quo will bring change

RT @rickklein: Why a status quo election will bring change | Power Players #TopLine - @YahooNews http://t.co/ekA3hnTa

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General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged "inappropriate communications" with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen's communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus' biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen's problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen's communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

"Gen. Allen disputes that he has engaged in any wrongdoing in this matter," the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

But the Allen investigation adds a new complication to an Afghan war effort that is at a particularly difficult juncture. Allen had just provided Panetta with options for how many U.S. troops to keep in Afghanistan after the U.S.-led coalition's combat mission ends in 2014. And he was due to give Panetta a recommendation soon on the pace of U.S. troop withdrawals in 2013.

The war has been largely stalemated, with little prospect of serious peace negotiations with the Taliban and questions about the Afghan government's ability to handle its own security after 2014.

At a photo session with Australian Prime Minister Julia Gillard shortly after he arrived in Perth, Panetta was asked by a reporter whether Allen could remain an effective commander in Kabul while under investigation. Panetta did not respond.

The FBI's decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta's decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen's nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold "until the relevant facts are determined." He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

The senior defense official said Panetta has not talked to Allen about the investigation, nor has he discussed the matter with President Barack Obama, although he consulted with unspecified White House officials before making the decision to seek a postponement of Allen's confirmation hearing.

Panetta did talk about the Allen matter with Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, who happens to also be in Perth for a meeting of American and Australian diplomatic and defense officials. Those talks were starting Tuesday with an official dinner.

With a cloud over Allen's head, it was unclear Tuesday whether he would return to Kabul, even though Panetta said Allen would remain in command. The second-ranking American general in Afghanistan is Army Lt. Gen. James Terry.

NATO officials had no comment about the delay in Allen's appointment.

"We have seen Secretary Panetta's statement," NATO spokeswoman Carmen Romero said in Brussels. "It is a U.S. investigation."

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama's nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford's hearing is also scheduled for Thursday.

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Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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Storm volunteers mingle with stars at Glamour fest

NEW YORK (AP) — Sandra Kyong Bradbury was star struck. She had just spied Supreme Court Justice Ruth Bader Ginsburg a few feet away.

"How can you top that?" asked Bradbury, a New York City neonatal nurse who had helped evacuate infants from a hospital that lost power during the height of Superstorm Sandy. She was amazed that she was being honored at the same event as a Supreme Court justice — the annual Glamour Women of the Year awards, where stars of film, TV, fashion and sports share the stage with lesser-known women who have equally impressive achievements to their name.

Few events bring together such an eclectic group of honorees, not to mention presenters. At the Carnegie Hall ceremony Monday night, HBO star Lena Dunham, creator of "Girls" and a heroine to a younger generation, was introduced by Chelsea Handler and paid tribute in her speech to Nora Ephron, who died earlier this year. Ethel Kennedy was praised by her daughter, Rory, who has made a film about her famous mother. Olympic gymnast Gabby Douglas, 17, was honored along with swimming phenom Missy Franklin, also 17, and other Olympic athletes, introduced by singer Mary J. Blige and serenaded by American Idol winner Phillip Phillips. Singer-actress Selena Gomez was lauded by her friend, the actor Ethan Hawke.

But the most moving moments of the Glamour awards, now in their 22nd year, are often those involving people of whom the audience hasn't heard. This year, the most touching moment came when one honoree, Pakistani activist and filmmaker Sharmeen Obaid-Chinoy, brought onstage a woman who'd been the victim of an acid attack in her native Pakistan. Obaid-Chinoy won this year's documentary short Oscar for a film about disfiguring acid attacks on Pakistani women by the men in their lives.

The evening carried reminders of Superstorm Sandy, with Newark, N.J. Mayor Cory Booker introducing some 20 women who'd been heavily involved in storm relief work. "They held us together when Sandy tried to blow us apart," Booker said. The women worked for organizations like the American Red Cross, but also smaller volunteer groups like Jersey City Sandy Recovery, an impromptu group formed by three women in Jersey City, N.J., who wanted a way to help storm-ravaged communities.

Singer-rapper Pharrell Williams introduced one of his favorite architects, the Iraqi-born Zaha Hadid, 62, who designed the aquatic center for the London Olympics and is now at work on 43 projects around the world.

Activist Erin Merryn was honored for her work increasing awareness of child sex abuse — a horror she had endured during her own childhood. A law urging schools to educate children about sex abuse prevention, Erin's Law, has now passed in four states. "I won't stop until I get it passed in all 50 states," Merryn insisted in her speech.

Vogue editor Anna Wintour saluted a fellow fashion luminary, honoree Annie Leibovitz, the creator of so many iconic photographs over the years. Jenna Lyons, the president of J. Crew, got kind words from her presenter, former supermodel Lauren Hutton. Chelsea Clinton brought up a stageful of women from across the country who had been involved in politics this year, noting that, while there is still a long way to go, progress was made in 2012.

The lifetime achievement award went to Ginsburg, 79, who made a few quips about being honored by a fashion magazine. "The judiciary is not a profession that ranks very high among the glamorously attired," the justice said. She also noted that although she was only the second female Supreme Court justice (Sandra Day O'Connor came first), she was the first justice to be honored by Glamour.

An affectionate tribute to the late Ephron followed, with three actresses — Cynthia Nixon, and two Meryl Steep daughters, Mamie and Grace Gummer, reading from a graduation speech she had given at Wellesley College.

Actress Dunham, in her speech, touched on politics and expressed her own relief that President Barack Obama had won re-election, saying she felt it was crucial for reproductive freedom and other issues of women's rights. "I wanted control of my womb before I really knew what my womb was," she quipped.

After the ceremony, which was presided over by Glamour editor in chief Cindi Leive, honorees and presenters headed to a private dinner. There, Sandy volunteers mingled with the stars. One woman, Lynier Harper, had spent six nights during Sandy at the Brooklyn YMCA where she works, taking care of other people. "When I finally went back home, my house was totally destroyed," she said. She has moved in with her sister while she seeks a new home.

A group of seven nurses came from New York University's Langone Medical Center, which lost power during the storm. The neonatal intensive care nurses had to carry the babies down nine flights of stairs, in the dark, squeezing oxygen into their lungs, to get them to safety.

And there were the three women from Jersey City Sandy Recovery, sinking in the proximity to the so many impressive people.

"I just shook Ruth Bader Ginsburg's hand," exulted one of them, Candice Osborne. "How awesome!"

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British medical journal slams Roche on Tamiflu

LONDON (AP) — A leading British medical journal is asking the drug maker Roche to release all its data on Tamiflu, claiming there is no evidence the drug can actually stop the flu.

The drug has been stockpiled by dozens of governments worldwide in case of a global flu outbreak and was widely used during the 2009 swine flu pandemic.

On Monday, one of the researchers linked to the BMJ journal called for European governments to sue Roche.

"I suggest we boycott Roche's products until they publish missing Tamiflu data," wrote Peter Gotzsche, leader of the Nordic Cochrane Centre in Copenhagen. He said governments should take legal action against Roche to get the money back that was "needlessly" spent on stockpiling Tamiflu.

Last year, Tamiflu was included in a list of "essential medicines" by the World Health Organization, a list that often prompts governments or donor agencies to buy the drug.

Tamiflu is used to treat both seasonal flu and new flu viruses like bird flu or swine flu. WHO spokesman Gregory Hartl said the agency had enough proof to warrant its use for unusual influenza viruses, like bird flu.

"We do have substantive evidence it can stop or hinder progression to severe disease like pneumonia," he said.

In the U.S., the Centers for Disease Control and Prevention recommends Tamiflu as one of two medications for treating regular flu. The other is GlaxoSmithKline's Relenza. The CDC says such antivirals can shorten the duration of symptoms and reduce the risk of complications and hospitalization.

In 2009, the BMJ and researchers at the Nordic Cochrane Centre asked Roche to make all its Tamiflu data available. At the time, Cochrane Centre scientists were commissioned by Britain to evaluate flu drugs. They found no proof that Tamiflu reduced the number of complications in people with influenza.

"Despite a public promise to release (internal company reports) for each (Tamiflu) trial...Roche has stonewalled," BMJ editor Fiona Godlee wrote in an editorial last month.

In a statement, Roche said it had complied with all legal requirements on publishing data and provided Gotzsche and his colleagues with 3,200 pages of information to answer their questions.

"Roche has made full clinical study data ... available to national health authorities according to their various requirements, so they can conduct their own analyses," the company said.

Roche says it doesn't usually release patient-level data available due to legal or confidentiality constraints. It said it did not provide the requested data to the scientists because they refused to sign a confidentiality agreement.

Roche is also being investigated by the European Medicines Agency for not properly reporting side effects, including possible deaths, for 19 drugs including Tamiflu that were used in about 80,000 patients in the U.S.

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Online:

www.bmj.com.tamiflu/

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Gen. Allen under investigation in connection with Petraeus scandal

Gen. John Allen, commander of the International Security Assistance Force in Afghanistan, is under investigation for alleged "inappropriate communications" with Jill Kelley, the woman who is said to have received threatening emails from Paula Broadwell, the woman with whom former CIA Director David Petraeus had an extramarital affair.

The FBI has uncovered "potentially inappropriate" emails between Allen and Kelly, according to a senior U.S. defense official who is traveling with Defense Secretary Leon Panetta. The department is reviewing between 20,000 and 30,000 documents connected to this matter, the official said. The email exchanges between Kelley and Allen took place from 2010 to 2012.

Panetta says the FBI referred the matter to the Pentagon on Sunday, according to a statement he released Tuesday while en route to Perth, Australia. Panetta says he ordered the Pentagon inspector general to investigate Allen on Monday.

Allen disputes that he has engaged in any wrongdoing in this matter, according to the official.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

In the meantime, Panetta said, Allen's nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold "until the relevant facts are determined." He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Allen was supposed to appear before a Senate confirmation hearing this Thursday alongside his designated replacement, Marine Gen. Joseph Dunford. Panetta has asked the Senate Armed Services Committee hearing to delay Allen's hearing, but proceed with Dunford's nomination.

Panetta said President Obama has agreed to put Allen's nomination on hold until the facts are determined. Panetta said that while the matter is being investigated by the Defense Department IG, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul.

The senior Defense official said, "We'll have to let the process follow its course. As I said, and you'll see in the Secretary's statement, we believe that General Allen is entitled to due process. We need to see where the facts lead in this matter before jumping to any conclusions whatsoever."

The official added, "We're in the very early stages of reviewing the documents right now. This matter has been referred to the IG, the IG will do a thorough investigation of the documents."

Kelley is said to have received threatening emails from Broadwell, who is Petraeus' biographer and who had an extramarital affair with Petraeus that reportedly began two months after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday citing the affair as his reason for stepping down from his post.

FBI agents spent more than four hours at Broadwell's home in North Carolina Monday night to carry out a consensual search that had been arranged with her lawyers, law enforcement sources said. The search was to locate additional classified material on computers or documents in the home, the sources said.

Agents left the house with a desktop computer, cardboard boxes and a briefcase. They walked through the open garage of Broadwell's house and knocked at a side door before entering the home. One person was taking photographs of the house and its garage as members of the news media watched.

Broadwell appears to be cooperating with investigators in an effort to make this go away, to show that she has nothing else to hide, the sources said.

Related:

An assistant to Washington lawyer Robert F. Muse told ABC News that Muse is representing Broadwell. Muse works for the same firm as the lawyer who represented Monica Lewinsky.

The firm, Stein, Mitchell, Muse & Cipollone, boasts such high-profile clients as Lewinsky, former Sen. Bob Packwood, R-Ore., AFL-CIO officials and Ambassador Lewis Tambs in the Iran-Contra Investigation.

Petraeus could possibly face military prosecution for adultery if officials turn up any evidence to counter his apparent claims that the affair began after he left the military.

A friend of Petraeus, retired U.S. Army Col. Steve Boylan, told ABC News, that the affair began several months after his retirement from the Army in August 2011 and ended four months ago.

Broadwell, 40, had extraordinary access to the 60-year-old general during six trips she took to Afghanistan as his official biographer, a plum assignment for a novice writer.

The timeline of the relationship, according to Petraeus, would mean that he was carrying on the affair for the majority of his tenure at the CIA, where he began as director Sept. 6, 2011. If he carried on the affair while serving in the Army, however, Petraeus could face charges, according to Article 134 of the Uniform Code of Military Justice, which reprimands conduct "of a nature to bring discredit upon the armed forces."

As the details of the investigation launched by the FBI unraveled this weekend, it became clear that the woman at the heart of the inquiry that led to Petraeus' downfall had been identified as Jill Kelley, a Florida woman who volunteers to help the military. She is a family friend of Petraeus, who Broadwell apparently felt threatened by.

Kelley and her husband are longtime supporters of the military, and six months ago she was named "Honorary Ambassador to Central Command" for her volunteer work with the military. Officials say Kelley is not romantically linked to Petraeus, but befriended the general and his wife when he was stationed in Florida. The Kelleys spent Christmases in group settings with the Petraeuses and visited them in Washington D.C., where Kelley's sister and her son live.

"We and our family have been friends with Gen. Petraeus and his family for over five years." Kelley said in a statement Sunday. "We respect his and his family's privacy and want the same for us and our three children."

Earlier this year, around the time that Petraeus and Broadwell were breaking off their affair, Kelley began receiving anonymous emails, which she found so threatening she went to authorities. The FBI traced the messages to Broadwell's computer, where they found other salacious and explicit emails between Broadwell and Petraeus that made it clear to officials that the two were carrying on an affair.

An official told ABC News the FBI uncovered "hundreds if not thousands of emails between Petraeus and Broadwell," many of them salacious in nature.

ABC News' Martha Raddatz, Sarah Parnass and the Associated Press contributed to this report.

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Pakistan accuses Afghans of killing civilians

ISLAMABAD (AP) — Pakistan has accused Afghan forces of cross-border shelling that has killed at least four Pakistani civilians.

The Pakistani Foreign Ministry says Foreign Secretary Jalil Abbas Jilani condemned the attack Monday in a conversation with the Afghan ambassador to Pakistan, Mohammad Umar Daudzai. The ministry said the attack killed four civilians.

Pakistani intelligence officials and a local resident say the attack occurred Sunday evening in the border village of Neiznarai, in the South Waziristan tribal area.

They say mortar rounds landed outside a home, killing five people, including four men and a child. They spoke on condition of anonymity because they were not authorized to talk to the media.

Local resident Habib Wazir confirmed the five deaths.

There was no immediate response from the Afghan government.

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Labels maintain new music spend despite sales slump

LONDON (Reuters) – Record labels say they have maintained high levels of investment in new music despite sweeping changes to their business in the digital age and a decade of falling revenues caused by sliding album sales and online piracy.

According to a new study from industry body IFPI published on Monday, record companies invested $ 4.5 billion in A&R (artists and repertoire) and marketing in 2011.

That was down from $ 5 billion in 2008, partly due to a significant drop in the amount record labels were willing to spend on marketing up-and-coming talent at a time of shrinking income.

But the A&R side fell less sharply to $ 2.7 billion last year versus $ 2.8 billion in 2008 despite a decline of 16 percent in the trade value of the industry globally over the same period.

Presenting the report in London, Max Hole, COO of Universal Music Group International, said he was cautiously optimistic that the music business would return to growth soon, helped by the proliferation of digital platforms.

“The stats are getting better, the rate of decline is slowing,” he told reporters.

“There’s every reason to hope that in the next couple of years we’ll reach the low point and start to go back to growth.”

According to the IFPI, in the first nine months of 2012, global recorded music sales had fallen by around one percent year-on-year after a fall of three percent in 2011.

The industry peaked in 1999 when sales were $ 28.6 billion, but has shrunk every year since, reaching $ 16.6 billion in 2011.

“I just feel that we are at a tipping point of lots and lots of services coming on, and services that really are in touch with the consumer,” Hole said, adding that, crucially, the platforms were more attractive than illegal pirate sites.

BANDS WANT LABELS

The report showed that more than 70 percent of unsigned acts in Britain and Germany wanted a record deal, despite the perception that many artists are keen to go it alone with the help of social networking.

Major labels have been accused of being slow to adjust to the challenges posed by digital music and illegal downloads, and relying too heavily on older, established acts to make money.

But the IFPI report sought to underline their role in unearthing new talent in a notoriously risky business.

Revenues invested in A&R represent around 16 percent of industry turnover, compared with 15.3 percent in the pharmaceuticals and biotech sector and 9.6 percent in software and computing.

The IFPI estimated breaking a pop act in a major market typically costs from $ 750,000 to $ 1.4 million, including a $ 200,000 advance, $ 200-300,000 on recording, $ 50-300,000 on videos, $ 100,000 on touring and $ 200-500,000 on marketing.

The Internet has revolutionized the way record labels go about their business, the report said.

A&R representatives today rely on the Internet as much as they do on attending gigs up and down the country to discover the next best thing, although most still want to see an act live before making up their minds.

According to the report, record labels are providing far more digital content as part of their marketing and promotion, and tend to sign deals with artists which go well beyond the shrinking recorded music business.

Brand partnerships, offering songs for use on television, in film and in commercials, and linking up singers from different regions to generate cross-over interest are just some of the ways they can help establish a new act, the IFPI added.

Hole said the recent merger between Universal, already the world’s largest music label, and EMI, would not lead to less A&R spending, but more.

“We have stated quite categorically that our intention is to reinvest in EMI and boost it and we think it will result in more investment in A&R,” he said.

“We operate a multi-label structure and that was something that had declined at EMI,” he added. “We’re going to reverse that.”

(Editing by Steve Addison)

Internet News Headlines – Yahoo! News

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Laughing in the storm: Comics don't shy from Sandy

NEW YORK (AP) — Comedian Dave Attell told a packed house at the Comedy Cellar that New York after Superstorm Sandy had a familiar feel. "It was dark. Toilets were backing up. ... It was pretty much like it always was."

Another comic, Paul Mecurio, told the same crowd that he got so many calls from worried family members that he started making things up about how bad it was.

"I'm drinking my own urine to survive," he joked.

New York's comedy clubs, some of which had to shut down or go on generator power in the aftermath of the storm, dealt with a bad situation like they always have — by turning Sandy into a running punchline.

"If they're going to do jokes on Sept. 12 about Sept. 11, then this thing isn't going to slow us down," said Vic Henley, the emcee of a show Oct. 28 at Gotham Comedy Club.

Sean Flynn, Gotham's operating manager, said comics were including the storm in their acts but had to be careful nonetheless not to make people feel worse than they already did.

"There's the old adage that tragedy plus time equals comedy. The variable is the time," he said. Still, he added: "You can't ignore the subject. That's what comedy's all about."

The Comedy Cellar, a regular stop for decades for the country's most notable comedians, was closed from Oct. 28 through Nov. 1, but reopened on Nov. 2 after a generator was brought in at a cost of several thousand dollars. Power didn't return until the next day, and the crowds came with it.

Everyone has a bad case of cabin fever," said Valerie Scott, the club's manager.

Mecurio said he thought the joke was on him when he got a call from the Comedy Cellar saying the club was going ahead with its show even though there was no light in the West Village. He headed downtown from the Upper East Side, hitting dark streets after midtown.

"It's pitch dark," he said. "And there's a room packed with people laughing. It was so surreal. ... I'm calling it the generator show. It was a really cool thing."

"You could feel there was something special about the show," he said. "The audiences were tempered in their mood. You could tell something was up, something was in the air. I knew it was cathartic for people."

He said a woman approached him after the show to thank him, saying: "You kind of brightened my day."

Sometimes, comics used the storm to get a laugh at the expense of the crowd, like when Mark Normand looked down from the Comedy Cellar stage at a man with a thin beard.

"I like the beard," he told him. "Is that because of Sandy? You couldn't get your razor working?"

And Attell used Sandy to mock a heckler, telling him: "You must have been a load of laughs without power."

At another point, Attell looked for positives in the storm.

"There's nothing better than Doomsday sex," he said.

Mecurio said he has made a point of including the storm and the havoc it caused whenever he takes the stage.

"I feel like as a comedian in the spirit of social satire, it's what we're supposed to do," he said. "It's the elephant in the room. How do you not do it?"

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