FullAudio Signs Another Song Partner
EMI Group joins BMG Entertainment to give subscription service access to
its music library.
Scarlet Pruitt, IDG News Service
Monday, June 25, 2001
Net music company FullAudio has snagged a second major music licensing deal, signing this week with EMI
Group to use its catalog of music, similar to the deal it cut with BMG
Entertainment earlier in June.
The double deals may give FullAudio a broader selection of songs in the
race to offer a subscription-based online music service. Partnering with EMI
gives FullAudio access to music from the publishing company's expansive array
of licenses, spanning artists from Puff Daddy (now P Diddy) to Sting.
Although the company has secured licensing agreements with two
publishers and claims to have another in the works, no company can legally
offer music for download without obtaining performance rights from record
labels as well as publishing rights.
However, FullAudio President of Music Services James Glicker says the
company expects to soon announce a deal with a major record label. This would
give FullAudio the chance to be among the first companies to offer consumers a
legitimate music download service, as opposed to the nonlicensed service of
Napster. The beleaguered pioneer of online music, however, is cutting
deals with its former foes and slowly shifting to a
subscription service as well.
Glicker says FullAudio plans to launch its service by the fourth quarter
of this year, with rights to about 30 to 40 percent of licensed music
content.
A Chorus of Competition
Label-backed sites such as rivals MusicNet and Pressplay might appear to
have the inside shot at obtaining contracts to provide music online. Even
FullAudio partner BMG is pursuing other ventures; it recently
acquired online music locker MyPlay.
But FullAudio is undaunted.
"I like our chances better because we are like Switzerland. We are the
only neutral site that can get content on both sides of the fence," Glicker
says.
FullAudio plans to offer a three-tier subscription service with prices
ranging from $5 to $15. The company is already performing in-house beta testing
and says the trials are going well.
As for whether consumers will be ready to pay to
play after the era of free music downloads, Glicker says he
believes consumers will be game.
"The bulk of people have understood the issues and know that artists
have to be paid," Glicker adds.
In the meantime, the race to gather tunes is on.
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