HOLLYWOOD — Shawn Fanning’s Snocap has signed its second major label, Sony BMG, as it attempts to turn peer-to-peer into a legit business.
Company was founded late last year by the Napster creator based on new technology that can transform pirated music on the Net into legit files that labels can then sell to P2P users.
Snocap already has Universal Music on board. With the addition of Sony BMG, it will now be looking to create a new digital business model for labels repping about 60% of the U.S market.
P2P firms crucial
All that content is moot, though, until Snocap signs up P2P companies as partners. At that point, it will start giving users legal options on P2P networks now used overwhelmingly for illegal piracy.
Insiders expect Snocap to start completing deals with big P2P networks like Grokster or Kazaa late this year. Company is likely looking to complete deals with the two other major labels, as well as indies, first.
“We’re very happy to be working with Snocap as we develop an infrastructure that will enable us to further expand our presence in the digital arena, while at the same time protecting the rights of artists and copyright holders from digital piracy,” commented Sony BMG global digital business prexy Thomas Hesse.