Interesting piece by Brad Stone in this morning’s NYTimes on the music labels’ shift away from imposing punitive terms on digital music start-ups in favor of terms that might let them stay alive long enough to actually create some business for the record companies.
Stone uses as his hook the recent experience of Imeem, which was on the verge of shutting down because its ad revenue could not begin to cover the millions it owed the labels in licensing fees, but was given an 11th-hour reprieve when Warner Music Group agreed to forgive Imeem’s debt and both Warner and Universal Music modified their licensing terms with the online music service. That allowed Imeem to raise new financing and stay in operation.
“We are trying to figure out how to restructure partnerships and develop a healthier ecosystem where entrepreneurs can continue to innovate,” Warner Music’s Michael Nash told the Times. Read More »