CBS Betting Big on Last.fm
Big Four Record Labels -- Universal, Sony/BMG, Warner, EMI -- On Board with Online Social Music Site
By Alex Weprin -- Broadcasting & Cable, 1/23/2008 8:47:00 AM
Last.fm, the CBS-owned online social music site, signed new agreements with all four major record labels to greatly expand its music library. The deal will make Last.fm the largest free on-demand music platform online.
"It is clear to us that communities built around great content are increasingly driving traffic and revenue online," CBS president and CEO Leslie Moonves said in a statement. "We acquired Last.fm because music is one of the best ways to build communities on the Internet. Adding such a tremendous collection of content to Last.fm will help it to grow by leaps and bounds. The skill set that we're learning along the way will be very important as we build additional online communities around our other world-class content, as well."
In addition to the big four record labels -- Universal, Sony/BMG, Warner and EMI -- Last.fm has deals with more than 150,000 independent labels and artists. The new service will be ad-supported, and CBS said the ads will be available to “highly targeted and engaged” audiences. However, the network did not delve into the specifics of the ad platform.
While on its face the new Last.fm may seem like a viable contender to digital-music heavyweight iTunes, the comparison is not really apt. for now, Last.fm does not allow downloading of music and, under the new service, many of the songs from the major labels will only be able to be streamed three times. After a user has streamed the song three times, Last.fm will refer them to affiliated partner services that offer downloads, including Apple’s iTunes, as well as Amazon.com.
Last.fm isn't even the first company to launch an ad-supported streaming music offering.Imeem, one of Last.fm's major competitors, has offered an ad-supported service featuring music and music videos from all four of the major labels since last month.
CBS also unveiled an “Artist Royalty” program, whereby artists currently unsigned by labels can upload their music to Last.fm and receive payment from the company whenever it is played.
CBS is expected to promote the new service heavily in the coming months and, with the network set to host the (picket-line free) Grammy Awards, it may have the opportunity to make a significant impact on the digital-music business.
The new free on-demand service will be rolled out in the coming months, while artists can begin applying for the Artist Royalty program immediately.
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