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April 19, 2005

AOL Reaches Deal With Universal For Music Videos

HollywoodReporter: America Online has disclosed an agreement with Universal Music Group, and a deal with Warner Music Group is expected shortly, to put music videos online, for free, on its music site AOL Music. Additional labels already are in negotiations as well. The videos will be monetized by advertising in different forms, most commonly banners and in-stream messages.
NYT: The deal comes more than two months after UMG demanded that online services and cable companies agree to new financial terms for the use of music videos or remove the clips from their on-demand services. Universal is close to a similar arrangement with Yahoo.
The per-view (each viewing of video by a user) fee will reach its top rate in early 2006, at slightly less than a penny...That is less than the penny or more Universal sought originally, but it also represents a major break from past practices, in which record labels provided new videos free under the theory that they served as promotion.
Billboard.biz (sub. req.): Yahoo! Music, MTV.com and RealNetworks' RollingStone.com are among the music portals still not featuring UMG videos in the wake of the label's new policy. Negotiations between those companies and UMG are believed to be ongoing. As for AOL, it becomes UMG's second licensee under the new policy, joining Microsoft's MSN Music, which signed on two months ago.

Posted by Rafat Ali in AOL, UMG | Permalink


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I still think they're making too much out of music videos: the market online, is at best, only of promotional value...
But then, licensing fee is always good: look at what AP's is doing in the online media market. In fact your sister site paidcontent.org covered it in detail yesterday...it is in keeping with that trend.

Posted by: Jeremy Tobin | Apr 19, 2005 3:54:02 PM

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