MySpace Music and Merlin Strike Comprehensive Global Agreement

MySpace Music, the premier online music community and leading independent music agency Merlin today announced a comprehensive global agreement for Merlin’s member labels to participate in MySpace Music.The addition of the Merlin repertoire, representing 10% of the global music market, to MySpace Music’s existing catalogue will create one of the largest independent music offerings on the web.Through this partnership, the MySpace Music community will be able to stream and purchase music from Merlin’s member labels – which include the Beggars Group, Domino, E1 Music (Previously Koch Records), Naïve, Cooking Vinyl, Tommy Boy, One Little Indian, Epitaph and !K7– as well as distributors including Finetunes, Kontor New Media, Inertia and Redeye.Artists represented by these labels include Arctic Monkeys, Adele, Antony & The Johnsons, Basement Jaxx, Dorrough, Bjork, Tom Waits, DJ Khaled, Franz Ferdinand, Prodigy, Animal Collective, Rancid and Vampire Weekend.The deal also sees MySpace Music announcing a plan tailored specifically for the independent music community that offers Merlin what it has sought from the outset – an opportunity to participate in and benefit from the financial growth of MySpace Music – in recognition of its contribution to that growth.The same eligibility and level of participation will be offered to all independent labels licensing content to MySpace Music.In addition, a Merlin nominee has been invited by MySpace Music to attend and participate in an agreed schedule of MySpace Music Board meetings. MySpace Music will now also formally solicit the input and business development perspective of other Independent Label representatives through participation in select MySpace Music Board of Directors meetings.“We’re excited to have Merlin’s labels join our platform," said Courtney Holt, President of MySpace Music. “We can now provide our users with access to the rich catalog that Merlin brings while simultaneously enabling Merlin labels to monetize their content within the MySpace community and easily track their fan engagement via our Artist Dashboard.”“Today’s announcement further demonstrates both parties' commitment to the independent communities they represent,” added Holt. “MySpace Music values the support of the independent community and it has been a top priority for us to create a program that would reward their steadfast support of the service.  I am thrilled to have a plan in place that will allow them to reap additional financial benefits from their support and loyalty.”Merlin CEO Charles Caldas commented “We have worked hard with Courtney and the MySpace Music team to find a way by which Merlin’s members could participate in the platform that MySpace Music offers as well as benefit from the long-term value that they bring to the MySpace Music venture”.“The creation of this participation plan, along with the ability for Merlin nominees to participate in MySpace Music board meetings shows that MySpace Music has recognised the value Merlin offers. I believe the announcement of this participation plan will ensure that MSM will move forward with the full support of our members, and by making this plan available to all independents, with the support of the entire independent community.”Beggars Group Chairman, Martin Mills commented “I am very happy that, after considerable effort on all sides, we now have an agreement through Merlin to participate in the exciting opportunities that MySpace Music offers, and that those labels and artists who were so much at the heart of MySpace from the outset will now be a part of and benefit from its growth.”Said Merlin Chairman Bob Frank “We are all thrilled to enter into this agreement with MySpace and begin maximizing the value of our members content on the MySpace platform. The executives on both sides have worked long and hard to put this together and it clearly is a monumental achievement for the Merlin community and MySpace.”----ADDITIONAL QUOTES – Merlin MEMBERSBrett Gurewitz -  Owner, Epitaph Records - “Thanks go out to the good folks at Merlin for achieving this important milestone, which benefits the whole independent music community. It’s only fitting that independents, so instrumental to the success of MySpace, be recognized for their contributions.”Steve Savoca - Head of Digital, Domino Recording Co. - "Domino is very pleased that Merlin was able to secure a balanced partnership with MySpace Music. MySpace is a very potent marketing and promotional platform for our artists. It will now provide both a revenue stream for our repertoire and growth for the commercial digital music sector."Martin Goldschimdt – Founder and MD – Cooking Vinyl - "For indies to participate in the future success of MySpace Music alongside the majors labels is bloody magic, well done Merlin."Tom Silverman – Chairman and CEO, Tommy Boy Records –“The MySpace vision was built around the concept of independent music and it is fulfilling for Merlin to be able to join MySpace Music and work closely with Courtney to develop further initiatives that will bring more strength to MySpace and more growth to the independent music community.”Horst Weidenmueller – Founder and CEO – !K7 - “MySpace was the first social network service that enabled indies to introduce new music to consumers without a major marketing budget. This has changed the music industry, but gave birth to the misconception that labels had to give away their music for free in exchange for increased profiling. This new partnership enables both sides to enjoy the financial growth of MySpace Music.”Colin Daniels - Managing Director, Inertia - “MySpace has been a valuable tool for connecting artists and consumers since its creation. All artists have benefited greatly from its easy to use platform and wide reach.  With this new participation plan independents can now achieve commercial benefits in return for the value they bring.  I look forward to working closely with MySpace in Australia maximizing these new opportunities.“Marcus Seal, Managing Director, Shock Group – “MySpace has played an important role in the development of many independent artists and we’re very pleased the collective contribution of those artists and the labels that represent them is recognized and valued by MySpace.  We look forward to a strengthened relationship and the continued development of the many talented artists that have played such a vital role in the growth of MySpace Music.”MySpace Merlin Announcement: Q&ACan you describe this comprehensive deal between MSM and Merlin?The commercial terms are confidential, of course, but we can tell you that it includes:1.     Merlin’s member labels will now be eligible to market, promote, and monetize their content on MySpace Music, get enhanced data surrounding the activity on the Site, and be able to improve the connections between Merlin Label Artists and their fans.2.     A Merlin nominee has been invited to attend and participate in select MySpace Music board meetings.3.     MySpace Music is launching a plan enabling the Merlin labels to participate in and benefit from the financial growth of MySpace Music.  This has long been important to securing Merlin’s participation. The plan will also be made available to other independent labels who license content to MySpace Music.What are the benefits for MySpace?The addition of the Merlin repertoire, representing 10% of the global music market, to MySpace Music’s existing catalogue will create one of the largest independent music offerings on the web.  MySpace Music will also benefit from the input of a Merlin nominee participating in Board Meetings.What are the benefits for Merlin?Merlin labels will be able to monetize their content within the MySpace community and participate in the long term value that they bring to the service.  They will be eligible for participation in various promotional programs MSM offers, and easily track their fan engagement via the MySpace Artist Dashboard.When will Merlin’s music catalogue be available?Merlin has a huge catalog and we will have it up and available to MySpace Music’s users as soon as possible.What Merlin labels are popular on MySpace?In the USA, Canada and UK, legendary and market leading companies such as Beggars Group, Domino, E1 Music (Previously Koch Records), Epitaph, Tommy Boy, Cooking Vinyl, !K7, Yep Rock, True North, Kill Rock Stars, Earache and One Little Indian as well as European powerhouses Naïve, Wagram, Blanco Y Negro, Galileo, Playground, Edel and Kontor Records and Australia’s Inertia and Shock Records, (to name just a few).Does Merlin now have a MySpace Music Board position?A Merlin nominee has been invited by MySpace Music to attend and participate in select MySpace Music Board meetings.What does an agreed schedule of Board meetings mean?It means not every meeting.  While Merlin nominees will take a leading role in the independent participation on the Board, other representatives for the Independent Community will also be invited to attend and participate in Board Meetings from time to time.Has MySpace offered Merlin equity in MSM?Neither MySpace Music nor Merlin discuss any specific deal terms publically.Why did it take so long for Merlin to join MySpace Music?Merlin has maintained that it would not participate in MySpace Music without an appropriate upside opportunity as outlined in the new participation plan. Each deal is unique and takes time to structure, and both parties are excited that Merlin has joined.When will MSM launch in the UK?We look forward to sharing more news on our UK launch soon.---MySpace Music On Their Indie Participation PlanHow does the plan work?Out of respect for all our music partners, we’re not disclosing the details. But the top line view is that the plan allows Merlin, and all independent labels who license content to MySpace Music, an opportunity to participate in and benefit from the financial growth of MySpace Music with very minimal threshold qualifications.Why is MySpace doing this?We’re doing this as a way to recognize the contribution of indie labels and artists to our business and to allow them the opportunity to get skin in the game.What are the qualifications to participate in this plan? Who can join?Any aggregator, or any label that is not owned or co-owned by an equity owner of MSM, can join.How do you join?Indies automatically become eligible for participation in the plan when they license their music to MySpace Music (either directly license or through an aggregator).Does this plan now change the way you promote and support Indies?No, we’ve always supported Indies on MySpace Music and will continue to do so.About MySpace MusicMySpace Music offers an ever-growing catalog of freely streamable audio and video content, user-friendly e-commerce solutions, personal music players, and user and artist playlisting. MySpace Music aims to empower major, independent, and unsigned artists to monetize their content through multiple revenue streams by allowing the MySpace community to freely stream premium content in an ad-supported environment, purchase MP3s and ringtones, create and share playlists, and ultimately buy merchandise, concert tickets, and other digital and physical goods.MySpace Music also connects artists and fans in the offline arena through various concert series and live events including Secret Shows, Transmissions, Introducing... and The Release. Merlin joins MySpace Music’s existing independent licensors, including The Orchard, IODA, Nettwerk Music Group, INgrooves, IRIS Distribution, Big Fish Media, Curb, Merge, TuneCore and RoyaltyShare.About MerlinMerlin, the virtual fifth major, represents the world's most important set of independent music rights.  Merlin commenced operations in May 2008. Since then it has struck deals with a number of digital services including Spotify, Catch Media and i-Mesh. Merlin ensures members have effective access to new and emerging revenue streams and that their rights are properly protected. Merlin represents by far the largest and most compelling basket of global independent rights, and so offers the most efficient means of licensing this repertoire.A global organisation, its members’ market share in the US alone is around 10%, equivalent to that of the smaller major labels, whilst in Europe member labels released 72% of the top 60 independent albums released in the past three years and commanded a 75% UK market share of the top 75 independent albums in 2007. Most recently, streaming service Spotify publicly announced that Merlin repertoire represented over 10% of the usage on its service.