From Hollywood Reporter:

Its characters may feel like a bunch of unloved high-school misfits, but the quirky musical TV comedy "Glee" is putting smiles on the faces of music industry executives searching for new revenue in an era of plunging album sales.

Two months into the 2009-10 TV season, "Glee" is drawing a weekly audience of 8.6 million viewers to the Fox television network. Fans have bought more than two million tunes sung by the show's cast on iTunes, and soundtracks are being compiled and sold in traditional stores.

Revenues are being split among Fox and the record company, and artists and music publishers are being paid licensing fees for songs "Glee" uses in musical numbers in each episode.

"Record labels have been desperate for new revenue," said Steve Knopper, contributing editor for Rolling Stone magazine. "They are trying to figure out any way to make money and one pretty reliable way is to sync up with a hot TV show."

That's exactly what Sony Music Entertainment's Columbia Records did last January when the Fox network shopped a pilot of "Glee" to record labels months before it aired.

Columbia won the deal to partner with News Corp's Fox on the release of all "Glee" music on Apple Corp's iTunes, as well as on traditional soundtrack albums.

Columbia also has broad "360" deals -- all-encompassing agreements -- with the previously unknown actors playing the "Glee" kids. The deals cover first rights to recording contracts, and a percentage of earnings from concert revenue, endorsements, merchandising and ringtones.

TV show to pop culture icon

The first "Glee" soundtrack was released last week, a second is due out on Dec. 8, and discussions are underway for a national cast tour and several more albums.

Neither Fox nor Columbia would give disclose financial details. But Glen Brunman, soundtrack consultant at Columbia, said: "We are hopefully going to make history together."

"We felt (in January) that it wasn't just a TV show but that it had the potential to be a pop culture icon," Brunman told Reuters. "It is unique and it is an approach with a TV show that hasn't existed in the past."

Digital downloads are released each week of "Glee" cover versions before the show is broadcast, allowing Columbia to capitalize on the appetite of fans to buy immediately.

In a sign of just how popular some of the tunes have become, the "Glee" cast's rendition of the 1981 Journey song "Don't Stop Believin'" was certified gold last week after more than 500,000 digital sales.

Rihanna's "Take a Bow" single saw a 189 pct sales increase after it was covered on "Glee". Now Madonna, eager to get in on the act, has offered her catalog for an upcoming episode.

Knopper said industry economics are such that the revenue from TV partnerships "is pretty much a drop in the bucket" in the multi-billion dollar record business.

Still, the music industry has fallen on hard times. Album sales are off 40% over the last 10 years, and in 2009 U.S. revenue is down 13% at $287.6 million.

Leonard Richardson, vice president of music at the CW network, said that in an era of piracy and changing consumer habits, the music industry is now fighting for every dollar.

"TV has basically become the new radio. It is about exposure and making an impression," Richardson said.

The CW, whose programs are aimed mostly at 18-34 year-old females, also cuts deals with record labels to promote music in tune with its shows' audience.

"Record labels are very aggressive these days in letting us know what they have coming," said Richardson. The CW gets a reduced rate on music licensing in return for showing ads on screen for songs featured in dramas like "Gossip Girl."

"Our demographic is watching TV. They are on their computers and they are on their cellphones. So with the ad cards, they can go immediately to CWTV.com and purchase the song right then and there," said Richardson.

The music deals build on a trail blazed by RCA -- also part of Sony Music Entertainment -- with Fox TV show "American Idol," which has produced multi-platinum recording stars like Kelly Clarkson and Carrie Underwood.

"That (deal) has been incredibly lucrative for them and in a barren time has provided them with some of the most reliable superstars," said Knopper. "If Columbia can tap into 'Glee' the way RCA did with 'American Idol', they are going to see a pretty big bright spot."

And so it begins.

I just hope the whole show doesn't become just a promotional vehicle--that they keep using songs for their connection to the plot, and not because Madonna offered it to them or something.

On a more positive note, I just watched the first three episodes--I am very much enjoying the show! Really fun.

Lots of emotional moments in this episode:

- I really love Kurt's relationship with his father, how they stick up and look out for each other.

- Tina confession to Arty

- Sue reading to her sister (I totally thought she was using Becky too but even that would be kinda cruel for Sue, so I'm glad it was a fake out and that we learned more about Sue)

- Puck wanting to do right by his "family"

Episode 1.9: "Wheels"

Principal Figgins: Shu, I saw all your kids in their wheelchairs and I was very impressed.

Will: Well thank you, Principal Figgins, but actually it’s made me realize that there’s only one wheelchair entrance in the school and it’s all the way in the far end of campus. McKinley needs ramps.

Sue: No way. Those are what I call lazy-makers. They discourage our able-bodies students from getting their proper exercise by using the stairs.

Sue: Okay, let me break this down for you here. There comes a point when you got to stop seeing people for what they look like and ask them to show you what they can do. And as soon as a cheerleader rolls herself out onto the field in a wheelchair, she becomes decidedly less effective at cheering people up. It’s just a fact.

Tina: How did it happen? You don’t talk about it.

Arty: My mom and I got into a really bad car accident when I was 8. She was fine but I’ve been in the chair ever since. But I want to be very clear, I still have the use of my penis.

Sandy: Is there a lot pain Noah?

Puck: The doctor said the shark fractured my spinal cord.

Sandy: This is why I don’t go to the aquarium.

Sue: You think this is hard? Try auditioning for Baywatch and being told they’re going in another direction - that was hard.

I think this show isn't as good since coming back from the break, it has lost humour, and it's bite, and a large part of that is NO SUE!!

Episode 1.10: "Ballad"

Will: Ballad. From middle English – ‘ballad’. Who knows what this word means?

Britney: It’s a male duck.

(Will and Rachel are singing “Endless Love” - awesome duet!)

Kurt (in his head): I could totally sing this song to Finn. But screw him if he’s taking the Diana Ross part from me.

Puck (in his head): I love the days when I don’t wear underwear…..full commando.

Finn (in his head): I never noticed how nice Rachel’s butt is. Oh crap, I think Quinn knows I’m staring at it.

As they sing, the looks Will kept giving Rachel and Will walking away when she tries to go near him.

Quinn’s dad: Glenn Beck is almost on.

Finn singing “I’ll Stand By You” to the sonogram on his computer. LMAO!!

Finn: I have to go. They’ll think I’m pooping.

Poor Quinn. (But the actress is not that good in dramatic scenes) The fallout of her parents finding out was pretty good.

Finn’s mom and Kurt’s dad need to hook up!

Terri making Rachel do housework. LOL!

Pepper: Let me tell you a few things I learned from two years of intense psycho-therapy and an esophagus transplant, lesson number one: You and Schu – it won’t work.

Rachel: What do you mean?

Pepper: We’re not so different you and me. We’re both mildly attractive and extremely grating.

Yay! Jenna Ushkowitz/Tina got a solo. I lover her voice and thought she did a great job on "True Colors".

The "Imagine" rendition was very sweet!

Episode 1.11: "Hairography"

Book title: “How to Raise A Baby On Five Dollars A Day”

Kendra: Just take your vitamins, stay out of the hot tub and avoid rum based drinks and you’ll be fine.

Rachel: Kurt, why did you volunteer to give me a new look?

Kurt: One, I’m a sucker for makeovers. And two, you need something to distract from your horrible personality.

Kendra: You got the beauty but I got the brains and the beauty.

Quinn: What are you doing on Friday?

Puck: Just the usual. Just going to stand outside the 7-11 and look depressed until someone offers to buy me beer.

Will: Britney, take it away.

Britney: Take what away?

Britney: It’s like cool epilepsy.

Kendra: I think this is the first time they have all been asleep at the same time…..What’s that smell?

Quinn: Soap.

Terri: You got them to take a bath???

(Quinn nods)

Kendra: What are you, an exorcist?

Grace: Um, who do you think I am?

Sue: That’s actually a good question because I forgotten both of your names.

Matthew Morrison was really good in the scene where Will finally found out that Terri wasn't pregnant. And when Will ripped out the pregnany padding - a bit scary!

Episode 1.12: "Mattress"

Ken: We are not rescheduling. D.W.F. Hall is booked until June. The only reason this Saturday is available is cause it’s the one year anniversary of that grizzly fish fry shootout. I got a monster discount. We just gotta be out of there before the candle light vigil.

All the clubs Rachel joined: Speech Club, Mock United Nations Club, Renaissance Club, Muslim Students Club, Black Student Union

Sue: Am I asking for too much, Ohio Board of Statewide Holiday Planning? All I want is just one day a year where I’m not visually assaulted by uglies and fatties. Seriously, Ohio, these retinas need a day off. So here’s the dream, Friday after Christmas which I have off, if you’re hideous stay at home. Spend the entire day watching home videos of a time when you weren’t too repulsive for me to ever want to look at….and that’s how Sue sees it.

Rod: Slammin’ Sue. We’ll be right back.

Sue: Andrea, that Sue’s Corner I just did…I was talking about you.

Sue: Well of course you didn’t, Will. You wouldn’t know if the Glee Club was using your office to breed rabbits for pets or for food.

Sue (to a pregnant Quinn in the cheerleader outfit): It’s like looking at a porno star in a nun’s habit.

Sue: Is there any reason you have a soiled mattress in your office, Will? Have you and the red-head have become so sexually depraved that you have to commit your craven acts of adultery in between classes?

I don't think I have commented in this thread for Glee, but I have to say it's absolutely my favorite primetime show on TV. I can't help but smile thinking about Glee!

The news of Glee not returning until APRIL is horrible.. is this a good move for FOX, overall? April just seems so late in the year. How many episodes can they get in?

I think they laid off the tuning machine a bit tonight and as a result the singing was so much better.

Too bad we have to wait until April for new episodes.

Episode 1.13: "Sectionals"

Sue: Bring it on, William. I’m reasonably confident that you will be adding revenge to the long list of things you’re no good at - right next to being married, running a high school glee club and finding a hair style that doesn’t make you look like a lesbian.

Brittany waving from the audience.

Rachel: Okay guys there’s no point in us arguing anymore. We have to go on in an hour –

Tina: And we have no songs.

Artie: Perhaps I can improvise some of my Deaf Poetry Jams.

Finn: Cool if I take my spot back?

Jacob: I was just here because I was hoping to get into Rachel’s pants.

Candace Dystra: Okay, I’m just going to come out and say it, this is a singing competition…..I don’t know how those deaf kids got in….they weren’t singing, they were like honking and everyone was crying and I was like ‘Get off the stage, you’re terrible and you’re making me super uncomfortable.’

Rod: Now hold on just a second, Candy. Those Hable-Hurst kids twice had me reaching for my handkerchief and those Jane Adams girls had it going on it all the right places.

The news of Glee not returning until APRIL is horrible.. is this a good move for FOX, overall? April just seems so late in the year. How many episodes can they get in?

Yeah, April is really late for a full season that consists of 22-24 episodes. If they go to 22 episodes, they will finish in June, which doesn't make any sense. If they finish in May, it'll be 19 or 20 episodes probably.

Second season ordered.

Okay, so this is from Perez:

Glee is certainly getting more than their fair share of celeb guest-stars for the next half of the season.

Let's see, they've got Idina Menzel, Olivia Newton John, Jennifer Lopez, and, oh yeah, Neil Patrick Harris.

Neil Patrick Harris is close to finalizing a deal with the show, which will have him featured on the very special May sweeps episode directed by Joss Whedon.

Oh, what a devilishly horrible sing-along that will be, huh?

The only roadblock is CBS giving the go ahead for one of the their biggest stars to show his mug on another network, FOX - they haven't done it yet. We think they will though.

One of the many reasons I hated Will and Grace was because of all the stunt casting.

I'm very worried their going to damage Glee with this kind of nonsense too. Why do this? The success of the first 13 episodes had mostly to do with a focus on the fresh faces...and a few broadway stars thrown in.

Is Glee the new format for an Ed Sullivan/Carol Burnett style variety show? Is that what this is becoming?

i LOVE stunt casting when its done right.

W&G's problem with it was the entire episode how to revolve around them. That show was fake enough already.

i LOVE stunt casting when its done right.

W&G's problem with it was the entire episode how to revolve around them. That show was fake enough already.

Maybe. I'm worried about the "back 9"...but we'll see. I think a show like this might toil best before the publicity hits. The first 13 episodes were basically filmed in obscurity, with no one knowing if the show would make it. I believe that likely helped to fuel the "striving Loser" dynamic that the show plays so well. Now that they're an international megahit with a hit show, albums, DVD sales, and soon concert....who knows if they'll be able to stay connected to their humility.

Plus, I'm not interested in what Jennifer Lopez or Idina Menzel offer in a particular week...I'm more interested in what Mr. Shue, Sue, and the Glee kids are going to deal with next.

I'm a bit worried too, but then again Glee's strength isn't really in its character writing--the show is even more inconsistent with dropped plot and story elements then Ryan Murphy's other show Nip/Tuck--one week the club is the teacher's life, the next week he happily leaves it to focus on his own adult male singing group, etc--I actually almost like that irreverent aspect to Glee (though it drove me crazy with NipTuck which is more of a soap opera--soap opera, no matter how outrageous, doesn't work when storylines are routinely dropped and forgotten, character behave differently every episode, etc.)