Blog Post

Digital Music Bits: MusicNet Partners With J. River; XM, Sirius Face Higher Royalties

MusicNet Partners With J. River On Digital Media Platform: The B2B digital music will integrate software developer J. River’s technology into its upcoming turnkey white-label platform. The new platform, described as “next-gen” by MusicNet will support music and video downloads, subscriptions and streaming. It wil work with Windows Media and be compatible with “Plays for Sure” portable devices. J. River’s contribution will “enhance the user experience of discovering, personalizing and enjoying digital entertainment.”

XM, Sirius Could Be Liable For Higher Music Royalties: WMG Chairman Edgar Bronfman Jr. was pretty clear on the concept last September when he told investors and analysts, “It’s now time for satellite radio to pay market rates for content.” Here we are a couple of months later and Banc of America Securities analyst Jonathan A. Jacoby is warning that XM and Sirius could wind up with higher royalty costs; currently, they pay royalty fees of about 7 percent and those rates expiring in 2006. Should the fees go up, Jacoby’s “worst-case scenario” has the sat radio firms dropping their plans for MP3 devices or adding features to appease the music industry.