Although streaming music site and social network Imeem Inc.'s staff may have shrunk in a round of
layoffs last week, its catalog continues to grow, thanks to a new licensing
deal with Beggars Group and its Matador Records unit, a stalwart independent music organization whose catalog sports Pavement, the Pixies, Devendra Banhart, Vampire Weekend and dozens of other renowned artists. The full music and video catalogs of Beggars Group and its subsidiary labels, including 4AD, Rough Trade, XL, Too Pure and others, will be made available on Imeem's Web site and related widgets, which users can embed on social networking pages and other sites.
Imeem already features music from all four majors and a variety of indies, many of whom provide music through key distributors. At least one major, Warner Music Group Corp. [
WMG], holds an
equity stake in the startup, alongside Silicon Valley venture firms including Sequoia Capital and Morgenthaler Ventures.
For the Beggars Group, the deal marks the first time its labels have offered music to consumers via a free, ad-supported Web service. According to Adam Farrell, the label group's new media head, the deal gives Beggars and its labels a cut of advertising revenue for each song users stream on Imeem, and represents a new step in its overarching strategy to generate income beyond the sales of packaged music.
Beggars does its own digital distribution rather than working through an organization such as
IODA or The Orchard Enterprises Inc. [
ORCD]. Although negotiating body
Merlin handles some licensing and dealmaking for Beggars as well, Farrell said the label's negotiations with Imeem began prior to Merlin's
establishment last year.
The label group isn't represented on the
new MySpace Music yet, although Farrell said it's "trying to right that situation," with Merlin negotiating on its behalf.
-- Paul BonanosSee press release from ImeemSee Oct. 22 post from Tech Confidential concerning Imeem's layoffs
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