Music streaming site Soundbreak.com inked a deal with the Recording Industry Assn. of America Thursday that enables Soundbreak to legally offer music from the RIAA’s member labels.
Financial terms weren’t disclosed, but Soundbreak agreed to pay a royalty to the RIAA every time a user streams an RIAA member’s song, in compliance with Webcasting rules set out by 1998’s Digital Millennium Copyright Act.
Soundbreak has already signed similar licensing agreements with artists’ rights groups BMI, SESAC and ASCAP.
Getting on with business
“We would have had to go to hundreds, even thousands, of labels to do all those individual deals,” Soundbreak CEO Lisa Crane told Daily Variety. “We wanted to get past this and get on with our business.”
Soundbreak is a streaming music service enabling Netizens to watch deejays play music while information about the artist and details on where to buy the music are Netcast adjacently.
Deal comes amid efforts across the music industry to put together legal and label-friendly schemes for offering music online to stem the tide of would-be consumers flocking to free services such as Napster, Scour and Gnutella.
“We applaud Soundbreak.com for taking the initiative to pull out of the pack by working with labels and artists instead of against them,” said Steve Marks, senior veepee of biz affairs for the RIAA. “Soundbreak.com’s agreement with the RIAA provides a ‘win-win’ business model for all constituents in the music world — artists, labels and consumers alike.”
(Ann Donahue in Los Angeles contributed to this report.)