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Going Mainstream: eMusic Signs Deal with Warner Music
In: web resources
13 Jan 2010
EMusic, the popular subscription-based music service, just announced that it has signed a deal with Warner Music, the world’s third-largest music company. This is eMusic’s second deal with a major record label. In its early days, eMusic mostly focused on featuring music from independent labels. Since the middle of 2009, however, eMusic has worked on expanding its reach by bringing more mainstream music to its catalog. The company announced a deal with Sony Music in June 2008.
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Today’s deal with Warner Music allows the company to add 10,000 additional albums from Warner labels like Atlantic Records and Rhino Records. Thanks to this, eMusic will now be able to feature music from artists like Eric Clapton, the Red Hot Chili Peppers and Depeche Mode. EMusic has about 400,000 paying subscribers.
From Quirky to Mainstream
For eMusic, this transition towards a catalog that focuses more on mainstream tastes has been rocky. When eMusic added the Sony Music catalog to its repertoire, the company also had to raise its subscription prices. Quite a few of eMusic’s most loyal users were unhappy with the direction the service was going and left the service. So far, however, eMusic’s users have reacted positively to the Warner deal.
Streaming Coming Soon?
According to eMusic CEO Danny Stein, the company also wants to offer a streaming music service in the near future. Stein told Reuters that the company still has to work out deals with the respective rights holders, though. Given that Apple just bought streaming music service LaLa, it probably doesn’t come as a surprise that eMusic is also looking at streaming music. As consumers warm up to services like Pandora and LaLa, download services like LaLa and Apple’s iTunes have to react to the trend.
Today is sad day for Netflix customers. The online video rental supplier has just announced an agreement with Warner Bros. that will forever alter your online rental experience. Now should you wish to rent a Warner Bros. flick you’ll have to wait out a 28-day holding period after the film’s initial DVD release date.
Of course the partnership rooted in money-making greed — Warner Bros. wants you to buy the DVD instead of rent it —was to be expected. But the new deal is a first of its kind, and we could soon see several other studios follow in Warner Bros. footsteps.
Both companies would like you to know that the deal also guarantees that Warner Bros. will add more direct-to-video and streaming titles to the Netflix collection.
It’s the end of an era and the end of the new release rental as we know it. While we mourn the loss of new release rental freedom, we’d like to point out that RedBox is every bit the rebel, and the enemy of the entertainment industry. So if you can stomach getting off the couch, hit up one of their kiosks and you’re still likely to find Warner Bros. new releases for rent on the cheap.
[via The Business Insider]
Tags: Film, netflix, redbox, rental, trending
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- Tags: Bros, business insider, day, holding period, Netflix, Redbox, release, rental experience, sad day, Warner
Warner Bros. And Netflix Reach New Deal
In: web resources
7 Jan 2010Warner Bros. said today it has reached a new agreement with Netflix to make new Warner titles on DVD and Blu-ray available to Netflix members after a 28-day window.
The move by Warner is an effort to squeeze all the potential profit it can from its new releases. Warner says under the deal Netflix will benefit by paying the studio less for new releases. The agreement also expands the license for Warner Bros. streaming content allowing Netflix to offer its members more movies they can watch instantly.
"We’ve been discussing new approaches with Warner Bros. for some time now and believe we’ve come up with a creative solution that is a ‘win-win’ all around," said Ted Sarandos, chief content officer for Netflix.
"We’re able to help an important business partner meet its objectives while improving service levels for our members by acquiring substantially more units than in the past after a relatively short sell-through window. At the same time, we’re able to extend the range of choices available to be streamed to our members."
Warner Bros. says 75 percent of new release sales occur in the first four weeks of availability. New releases from all suppliers account for about 30 percent of Netflix shipments. Look for more studios to follow Warner’s lead.
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> Netflix Now Streaming ABC Shows
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