Universal Music has struck a deal with online music and video provider imeem making it the fourth and final major label to allow their music and videos to be streamed to users for free. From the Associated Press today:
“LOS ANGELES - Social networking Web site operator imeem Inc. has signed a licensing deal with Universal Music Group to offer free streaming of music and videos by the record company’s artists in exchange for a share of online advertising revenues, the companies said Sunday.
Financial terms of the deal were not disclosed.
The pact is the latest example of record labels betting on online advertising as a source of revenue amid sinking CD sales.
The Web operator already has similar licensing deals with the other three major record labels. Collectively, the four biggest recording companies account for more than 85 percent of music sales so far this year.
Under the agreement, imeem can carry full-length music and videos by Universal Music’s acts, which include Snow Patrol, Kanye West and Amy Winehouse.
San Francisco-based imeem launched in 2004, offering instant messaging and file-sharing software. It has since morphed into a social networking Web site that also streams free audio and video next to advertisements.
Like Google Inc.’s YouTube and similar sites, imeem allows computer users to post their own videos. The imeem site claims to have more than 19 million active users.
Imeem said it counts Apple Inc., Microsoft Corp., Nike Inc., and AT&T Inc. among the companies advertising on its Web site.
Getting access to music from the four major record labels should help imeem drive more traffic, even taking some from established online music sites such as Apple’s iTunes Store, said James McQuivey, an analyst with Forrester Research.”
It would be interesting to know the financial particulars of this deal. How much does imeem make on advertising? Is it song specific? What percentage of that is Universal, or any of the major labels making? And the grand-daddy of all questions is:
Is this enough to keep the major labels afloat?
Time will tell. As a musician I’m happy that people are figuring out ways to make money on music. I can’t decide if keeping the major labels alive is a good thing. One of the maxims of organizational theory states: it is the imperative of any organization to ensure it’s own survival, first and foremost, so I guess I’m not surprised that the struggling majors are still in there fighting to stay alive. Let’s just say this: major or indie or completely independent, it’s a good thing that someone, anyone, is making money on music. I’ll take this as good news for music makers and leave it at that.
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Hans Erik
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Hans@Next2Friends.com
December 11th, 2007 at 1:31 am
[…] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerptUniversal Music has struck a deal with online music and video provider imeem making it the fourth and final major label to allow their music and videos to be streamed to users for free. From the Associated Press today: … […]
December 26th, 2007 at 7:49 pm
[…] unknown wrote an interesting post today onHere’s a quick excerptUniversal Music has struck a deal with online music and video provider imeem making it the fourth and final major label to allow their music and videos to be streamed to users for free. From the Associated Press today: … […]
December 26th, 2007 at 11:52 pm
[…] Everett wrote an interesting post today onHere’s a quick excerptUniversal Music has struck a deal with online music and video provider imeem making it the fourth and final major label to allow their music and videos to be streamed to users for free. From the Associated Press today: … […]