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"Listen.com has created a compelling service that gives music fans what they want—access to a broad selection of music at an affordable price."
——Paul Vidich, EVP of Warner Music Group

RHAPSODY IN BUNNY

Listen.com Inks Licensing Pact with WMG for Streaming Service
Listen.com has hooked up another non-exclusive licensing deal for its Rhapsody streaming sub service—this time with Warner Music Group.

The well-regarded online music service previously scored pacts with EMI, BMG and Sony. Only Universal Music Group has not thus far agreed to lend its content to the venture, which currently offers consumers streams of its 90,000-plus tracks for the "All Access" price of $9.95 per month. The service also offers music from several indie labels, including Bar/None, Razor & Tie, KOCH and Matador.

UMG parent Vivendi Universal is said to be the dominant partner in Pressplay, its online joint venture with Sony. Pressplay and rival MusicNet both offers downloads as well as streams, but have been beset by hostile press and, recently, accusations of antitrust activity. Even so, all of MusicNet’s label backers have inked licensing agreements with Rhapsody.

"Listen.com has created a compelling service that gives music fans what they want—access to a broad selection of music at an affordable price," declared WMG EVP, Strategic Planning and Business Development Paul Vidich. "And by ‘compelling’ I mean that it doesn’t scare the crap out of us."

"We’re thrilled that Warner Music Group’s extensive catalog of music will now be available through Rhapsody," proclaimed Listen.com President/CEO Sean Ryan. "And if you subscribe now, we’ll send you this lovely set of steak knives…"

Listen is loudly claiming to offer the only "legal" means to get music from four out of five major-label groups. Will consumers answer the call? Thus far, streaming-only services have struggled for traction with audiences already steeped in downloading and CD-burning.

In addition, observers of the digital-music scene—you know, geeks—wonder if the recently announced CARP decision regarding royalty rates will make on-demand streaming unbearably expensive.

Publicly, high-profile online services are putting a brave face on the situation. Listen paid the National Music Publishers Association a sizable advance last year, to suffice until rates were established. Now that they’ve been set, the chase is on for subscribers and advertisers to offset the possibly overwhelming cost of doing business online.

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