Blog Post

Record Labels Loosen Up On Non-Carrier Mobile Music

Major record labels, led by Universal, are reportedly moving towards offering bulk purchases to third parties, which were instrumental in making the ringtone business a success. The move is considered critical in driving the success of full-track and real-tone downloads.
“Traditionally, major record labels have been both slow and commercially inflexible in licensing to non-operator channels,” said Del Dias, MD of AEI Mobile. “In recent months we’ve seen some majors becoming more flexible in their licensing terms, especially as they realise that the exploitation of their back catalogue is better handled by specialist aggregators.”
The prices the labels have been asking make this hard to work,” said Opera Telecom MD Gary Corbett. “I think the other record labels will follow this new model, as it makes sense for them to benefit from the off-portal growth.”
The move could also reduce the ‘reliance’ on sound-alike tones such as Clone Tones. It’s certainly a better way to compete than by intimidating providers into only using your content…
It will hopefully see the full-track download market resemble the online download model, rather than trying to keep prices as high as the ringtone market.
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