Digital distributor IODA has finalized a deal with MySpace Music. They become the second major Independent distributor after The Orchard to have their music included on the social networkers new ad supported music service.
The deal means 1 million tracks from 50K indie artists. "Sometimes being first to the party is not the best position to be in during negotiations," IODA CEO Kevin Arnold said in an interview late Wednesday. "We weren't under intense pressure to make this deal and I'm very happy with what we ended up with."
Arnold stated that "equity and profit participation were not a part of the contract", as MERLIN and some indies have called for. "I said from the beginning that finding short term revenue streams for our label partners was the goal. We've tip toed our way towards the ad supported model and MySpace Music is well positioned to make it work." While labels are able to opt out of participating, Arnold says his labels are generally enthusiastic. "Many of IODAâs labels have been early and active participants in the MySpace Music community, and consider it an essential tool to develop relationships with their fans."
Who is next? MySpace isn't really saying. "Weâre creating a sustainable, profitable music economy for all artists and we're thrilled IODA endorses this vision. MySpace Music continues to actively embrace the indie community as we further our partnership discussions with additional labels and aggregators," says Frank Hajdu, My Space Music's Executive Director of Strategy & Operations.