BMG To Make Entire Catalog Available In Streaming Audio
BMG Entertainment will make its entire catalog available through online
provider MusicBank, an officially sanctioned venture similar to an
MP3.com service shut out of major-label music by recording-industry
lawsuits.
The new service, announced Thursday, will allow Internet users to listen
to streamed versions of music from BMG's vast catalog, which includes
artists such as pop sensations Britney
Spears and the Backstreet
Boys, jam-rock combo the Dave
Matthews Band, and rock veterans
color="#003163">Santana, on more than 200 labels, including
Arista, RCA, Ariola and Windham Hill.
"This agreement is an example of BMG's enthusiasm for supporting those
Internet companies that are committed to working with us to both provide
consumers with convenient access to their favorite music and protect our
artists' rights," Kevin Conroy, BMG chief marketing officer and
president for new technology, said in a statement.
BMG was among the plaintiffs in a lawsuit filed in January by the
Recording Industry Association of America against pioneering online
music site MP3.com. The suit charged that the site's My.MP3.com service
infringed on the labels' — and their artists' — copyrights by
allowing users access to a vast database of streaming MP3 songs.
The My.MP3.com service allowed users to listen to, but not download, MP3
files from CDs they already owned. After an April ruling that the
service infringed on copyrights, MP3.com removed all major-label tracks
from its My.MP3.com database and announced that it was negotiating with
the five major-label groups — BMG, Universal Music Group (
color="#003163">DMX, Shania
Twain), Time Warner (Kid
Rock, Madonna), Sony
(Rage Against the Machine,
color="#003163">Pearl Jam) and EMI (
COLOR="#003163">Smashing Pumpkins, the
color="#003163">Rolling Stones) — to provide authorized
access to their music.
But MusicBank has beaten MP3.com to the punch with BMG, and is
negotiating with the other majors and many independent labels, MusicBank
co-founder and Chairman Pierce Ledbetter said.
Like My.MP3.com, the MusicBank service will allow users who have already
purchased a CD to listen online to songs from that CD — but unlike
My.MP3.com, MusicBank will provide audio by secured streaming, not in
MP3 format.
The service will be linked with Internet and traditional retailers, who
will provide sales information that will allow the company to know what
CDs users have purchased, and therefore may access. A user also can
insert a CD into a CD-ROM drive, and MusicBank will allow the user
access to the streaming version.
Ledbetter said the new service will pay per-listen royalties to
publishing companies such as BMI and ASCAP, which distribute radio and
jukebox royalties to artists. Artists will also be able to track their
music's usage on the service.
The San Francisco company is working on a downloadable format, as well
as a high-resolution audiophile format, which Ledbetter said will
provide better-than-CD-quality recordings of some songs.