Spotify Inks a New Licensing Deal with Universal Music Group

Spotify and Universal Music Group, the world’s biggest record company, finally inked a global, multiyear licensing deal after two years of intermittent negotiations. With this deal in place, Spotify now has a better chance of convincing Sony and Warner to follow suit, and UMG, whose artists include Drake, U2, The Weeknd and Lady Gaga, has more flexibility on how it streams its music. Spotify’s contracts with UMG, Sony and Warner had expired long ago. Spotify, valued at $8 billion, now also has a clearer path to going public. Continue reading Spotify Inks a New Licensing Deal with Universal Music Group

Spotify Focuses on Major Record Label Deals to Boost Profits

In its efforts to move more free-tier users to its $10/month subscription service, Spotify has redoubled its efforts to ink long-term licenses with major record labels. One potential option is that the labels would limit new releases to Spotify’s subscription tier in exchange for a lower percentage of subscription revenue. Another possibility is that Spotify will provide artists data and promotion in exchange for reduced royalty payments. Spotify is trying to settle the deals by end of 2016, say sources. Continue reading Spotify Focuses on Major Record Label Deals to Boost Profits

Sony, Universal Ink Deals with Pandora for Streaming Services

Sony Music, Universal Music and Merlin Network, which represents 20,000 independents, have agreed to license songs to Pandora for its two new music services. Pandora plans to offer the advertising-free Pandora Plus and an on-demand service similar to Spotify. The company is also still in talks with Warner Music in an attempt to ink a deal with this third-largest music rights holder. Pandora hopes to launch both of its new services by the end of 2016. As of June 30, Pandora says it has 78.1 million active listeners. Continue reading Sony, Universal Ink Deals with Pandora for Streaming Services

Warner, Sony Commit to Divvy Spotify Sales Gains with Artists

Warner Music Group, which has ownership stakes in streaming services, will now share revenue with artists if and when those services go public or are sold. Following Warner’s lead, Sony Music confirmed it would do the same. Analysts believe the move is an attempt to woo artists who receive miniscule returns from streaming. Two other trends leave musicians out in the cold: royalties are often not pegged to a specific song and record labels have traded more generous royalty rates for part ownership of streaming services. Continue reading Warner, Sony Commit to Divvy Spotify Sales Gains with Artists

Whipclip Attracts Media Partners and $40 Million Investment

Whipclip’s app, which allows users to immediately and legally share clips from TV shows and other media, raised an additional $40 million in Series C financing. Led by asset management firm Eminence Capital, other investors include Institutional Venture Partners, Rain Ventures and content partners A&E, ABC, CBS, Comedy Central, Fox, Lifetime, Sony Music and Universal Music Group. Whipclip CEO Rich Rosenblatt, previously co-founder of Demand Media, states that some clips have been viewed millions of times. Continue reading Whipclip Attracts Media Partners and $40 Million Investment

Grooveshark Shutters Music Service After Losing Legal Battle

After facing a six-year legal battle with major music labels, Escape Media has finally agreed to cease operations of music startup Grooveshark, which offered users access to millions of songs for free. Grooveshark’s founders recently published a formal statement to apologize for attempting to offer music without having the licensing agreements to legally do so. Under the terms of the settlement, the company has been mandated to shut down its website, apps and clear all of its servers.  Continue reading Grooveshark Shutters Music Service After Losing Legal Battle

New iPhone App Lets Users Share TV and Music Video Clips

A new app called Whipclip is making it easier for people to find, extract and legally share their favorite video clips from TV shows and music videos. At any given time, users can open the app, choose from a list of shows playing in real time and create snippets using the last two minutes of footage previously played from that show. It is reportedly that simple for users to create clips to be easily shared with friends through the app or across various social media platforms. Continue reading New iPhone App Lets Users Share TV and Music Video Clips

Sony to Add Spotify Music Service to its PlayStation Network

Sony recently announced that it plans to replace its Music Unlimited service on the PlayStation Network with popular digital music service Spotify. Come March 29, PlayStation users will be able to connect their Spotify accounts, both free and premium, to run through the PlayStation Network and stream music while they play games. The new partnership could generate new subscribers for Spotify and help it take on competitors, since Sony’s PlayStation Network currently has about 64 million active users. Continue reading Sony to Add Spotify Music Service to its PlayStation Network

New Deal with VEVO Will Bring Music Content to Yahoo Screen

Yahoo and VEVO announced a new partnership to bring music videos, concerts, and other original music programming to video channel Yahoo Screen. The deal includes new financial incentives for Yahoo to promote VEVO videos, particularly on the Yahoo home page, mobile app, and Yahoo sites outside the U.S. It is all part of Yahoo CEO Marissa Mayer’s strategy to focus on video to keep visitors on the site longer. VEVO, meanwhile, hopes to break its dependency on YouTube. Continue reading New Deal with VEVO Will Bring Music Content to Yahoo Screen

ZEFR Helps Content Creators Reach Their Hidden Audience

I recently spent an hour with Richard Raddon, co-founder of ZEFR (formerly MovieClips), a Venice, California company that is “connecting fans and franchises for the good of all.” MovieClips was co-founded by Raddon and Zach James about three years ago. The company developed proprietary technology that allowed them to identify content on YouTube. When MovieClips became ZEFR, it shifted its focus to help studios, sports, TV and music videos collect and monetize postings on YouTube. Continue reading ZEFR Helps Content Creators Reach Their Hidden Audience

Vevo Returning Music Videos to Television with New Channels

Music video company Vevo, a joint venture between Sony Music Entertainment and Universal Music Group, is making the transition from YouTube to television in an approach intended to generate revenue for the companies that create the videos. Vevo will deliver on-demand music videos and launch a channel of original programming via Apple TV set-top boxes and Samsung TVs. While the Samsung launch is likely a few weeks away, Apple could launch its Vevo Apple TV app this week. Continue reading Vevo Returning Music Videos to Television with New Channels