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Business News Digital Labels & Publishers
Warner and Universal help Imeem by agreeing to lower royalties
By CMU Editorial | Published on Friday 29 May 2009
Word has it that both Warner Music and Universal Music have agreed to lower their licensing rates for struggling music-based social network Imeem, in a bid to help the web company make their business work.
Warner have a vested interest, of course, given they are shareholders in the digital music firm, but if Universal have actually also dropped their royalty rates, then that’s interesting, because it’s a sign that the biggest major record company has actually recognised they have a vested interest in at least some of the many digital music services that have launched in recent years from actually becoming profitable going concerns, rather than all digital royalty income being funded by venture capital invested in start ups.
Digital Music News report that Napster may also have got more favourable licensing rates from the two majors, helping them launch a more competitive five dollar a month subscription offer in the US.
