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October 10, 2006

Google Sony BMG and Warner Music Deals

posted by MR WAVETHEORY at 10/10/2006 08:38:00 AM
Here are the Google (Nasdaq GOOG) press releases for the Warner Music Deal and the Sony BMG deal. They main difference is that Warner will be selling songs off Google immediately for $1.99 a download while Sony will distribute for free and monetize through advertiser sponsorships.

Sony BMG Deal Facts

Monetizing through Ad-Supported Content
SONY BMG MUSIC ENTERTAINMENT will be able to monetize its music video content online by leveraging Google's extensive advertiser network of hundreds of thousands of advertisers. SONY BMG MUSIC ENTERTAINMENT's expansive music video catalog will be sponsored by Google advertisers making it free to all users. The advertising revenue generated will be shared by SONY BMG MUSIC ENTERTAINMENT and Google.

Unmatched Distribution through AdSense Partner Sites
In the coming months, SONY BMG MUSIC ENTERTAINMENT will also work with Google to distribute select videos from its vast archives to websites around the world via Google's extensive AdSense publisher network, making it even easier for music fans to access streaming premium content while surfing the Web, all at no cost to the user. Web publishers will be able to easily display videos that match the tone of their sites adding value to their online content and creating a new way to earn revenue from their sites. For example, a fan site devoted to a particular artist can run ad-supported music videos from that artist. Each time a user is interested in the accompanying ad and clicks on the video, the web publisher, SONY BMG MUSIC ENTERTAINMENT, and Google accrue revenue.

Facilitating User-Generated Content
SONY BMG MUSIC ENTERTAINMENT and Google will also work together to create a groundbreaking new service that will allow music fans to access user-created music video content featuring certain material from SONY BMG MUSIC ENTERTAINMENT's library of recorded music, while at the same time respecting the rights of artists and copyright holders.

Warner Deal Facts

Monetizing through Ad-Supported Content
WMG will be able to monetize its music video content online by leveraging Google's extensive advertiser network of hundreds of thousands of advertisers. WMG's music video catalog will be sponsored by Google advertisers, making it free to all users. The resulting generated advertising revenue will be shared by WMG and Google. Besides providing ad-supported content on Google Video, select WMG's music videos will immediately be available for purchase as downloads on Google Video for $1.99.

Unmatched Distribution through AdSense Partner Sites
In the coming months, WMG will also work with Google to distribute its substantial video collection to websites around the world via Google's extensive AdSense publisher network, making it even easier for users to access free premium content while surfing the Web. Web publishers will be able to easily display videos that match the tone of their sites adding value to their online content and creating a new way to earn revenue from their sites. For example, a fan site devoted to a particular WMG artist can run ad-supported music videos from that artist. Each time a user is interested in the accompanying ad and clicks on the link, the Web publisher, WMG and Google will share in the resulting revenue.

Facilitating User-Generated Content
WMG and Google are working together to allow users access to music from WMG's recorded music library for use in their creative user-generated productions. Once Google's technology is implemented, content companies such as Warner Music Group will have the opportunity to monetize the use of music in user-generated content, or if they choose, have the content removed from the platform.

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