WildBlueSkies - Trends and strategies in Digital Media

With its signing of the deal to access the catalog of Universal Music Group, Imeem becomes the first social networking website to offer free unlimited songs and music videos from all the four major record labels i.e. Warner Music Group, Sony BMG and EMI.
Imeem allows members to stream, but not download an unlimited number of songs and videos with an ad-supported revenue model. This revenue, in turn, is shared with the record labels.
When you see that Imeem with its 18 million active users, had a suit filed against it by Warner Music as recently as May 2007 for copyright infringement, and now boasts of deals with the big four, it is indicative of the trend that music companies are finally looking at models which allow them to use the web instead of fighting against it. Labels such as Rcrd Lbl and bands such as Radiohead are already trying out different models.
Sites like Rhapsody also have content from the big four, but its ad-supported version allows streaming of only 25 songs per month. More than that, and members have to subscribe. Ad-supported SpriralFrog on the other hand allows downloads from Universal and EMI, but the songs cannot be played on iPods or Zune.
Expect to see more revenue models arising - artists anyways are finding that a bullk of their revenues now come from touring and mechandise sales, corporate sponsorships, etc.

Related reads:
Music Label Joins The Ad Supported Bandwagon
Radiohead Presents A New Model For The Music Industry

Filed under: Digital culture, Trends