Lynne d Johnson



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05.31.05 08:57 PM

labels want $ for video streams

As previously reported Universal Music Group (UMG), no longer intends to provide free video content to websites or cable television services. UMG, one of the largest recording labels, serving as parent company to Geffen Records,
Interscope Geffen A&M, Island Def Jam Music Group, Lost Highway Records, MCA Nashville, Mercury Nashville, Motown Records, Universal Classics, Universal Records, Universal Music Enterprises, Universal Music Latino, Universal South, and Verve Music Group, has apparently set a trend with this business move.

Now SONY BMG has followed suit, and will possibly strike "a VOD distribution agreement with a yet unannounced leading online portal and is notifying all other digital music programmers they need to remove their Sony BMG video content from their services in the wake of the pact." Home of Arista Records, BMG Classics, BMG Heritage, BMG International Companies, Columbia Records, Epic Records, J Records, Jive Records, LaFace Records, Legacy Recordings, Provident Music Group, RCA Records, RCA Victor Group, RLG - Nashville, Sony Classical, Sony Music International, Sony Music Nashville, Sony Wonder, Sony Urban Music, So So Def Records, and Verity Records, Sony BMG represents most of the major labels that Universal does not.

These recent developments, leave companies like Yahoo Launch and Viacaom, and other smaller companies, in a conundrum whereas they'll have to strategize alternative content plays that increase their reach and thereby increase revenue share in the VOD marketplace. Or these companies will instead have to pay portions of revenues earned from providing this content to these major labels. While there still remains a host of independent labels willing to provide video at no cost, these companies can by no means replace the amount of content, especially highly requested content, distributed by the larger labels.

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