rVibe Blog

I just got off the phone with EMI.  In an indication of the tide shifting in the major label space, EMI is pointing us in the direction of “aggregators” (where an aggregator is a company that has licensing deals to extend licenses to other retailers).  It’s not so much that they don’t want to do a deal - it’s that deals are slowing - and heading toward bigger players.  The reason for this is simple:  bigger player results in higher immediate revenue and greater margin. 

I suspect this means two things:

1. A consolidation of music distribution to a few leading “aggregator” companies
2. Fewer unusual business model deals coming out

So - they are open to us, and think what we’re up to is interesting, but from a business standpoint they need more financial guarantee before moving down a direct licensing deal.

This entry was posted on Tuesday, December 18th, 2007 at 2:28 pm and is filed under CEO Corner, Content/Lables. You can follow any responses to this entry through the RSS 2.0 feed, or Bookmark on del.icio.us. You can leave a response, or trackback from your own site.