Merlin, A2IM and Koch along with some in the independent music community have complained loudly that the deal offered by MySpace Music doesn't give them the same equity stake as the major labels. "Any independent deal
struck without an equity component (as was done with the majors), will
see independent labels face a situation whereby their major competitors
will profit from the use of their repertoire without an appropriate
upside opportunity being extended to them," states Merlin CEO Charles Caldas.
But The Orchard, one of digital music's biggest aggregators, was happy to sign. "I see MySpace Music's short and medium term potential to provide revenue to artists and labels for doing what they already do: engage their fans on MySpace," Orchard CEO Greg Scholl told Hypebot.
"We were concerned with aggressively negotiating the highest rate possible." he continued. "I see all of this talk about equity as a bit of a red herring. What is equity worth when it can be diluted by new stock offerings and other financial maneuvers? We should be concerned with arguing for a share of the profits" if, for example, there were an asset sale.
The deal that The Orchard signed is "not particularly long term"...
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