Chinese portal Sina has reached agreements with five major record companies to launch a digital music platform for online music, downloads and other wireless services, AFX News (via Forbes) reported.
The deal among the five labels, BMG Universal, Warner Music Group, EMI and Rock Records, involves an unspecified profit-sharing scheme from advertising, download fees and revenue from a variety of other wireless services. Sina has done pretty well in generating ad revenue in the past year, as total ad revenues grew 43 percent year-over-year to $120 million.
Aside from generating ad revenue, the labels hope that the deal will reduce piracy. If all goes well among the varying parties initially, Sina plans to launch a pay-per-download music service, China Daily reported.
Related:
— Shanda Selling 7.4 Percent of Its Stake in Sina For $130 Million
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