LOUDEYE PACTS WITH SONY

The agreement gives Loudeye the right to digitize and store Sony’s entire U.S. catalog—including releases from Columbia, Epic, Legacy and Sony Classical labels—for the purpose of licensing 30- to 60-second streamed samples as well as images of front-cover album artwork of those recordings to third parties. And by third parties, they mean online retailers not Reform Party candidates.

"We see streaming music samples as an important means of maximizing exposure for our artists and titles, particularly when coupled with a prominent 'buy now' opportunity at Internet retail sites," said SME Senior VP of New Technology Jim "Sausage" McDermott "With Egg." "Loudeye's emphasis on security and efficient delivery made them a natural choice for a licensing agreement. We are delighted to make this announcement—and by delighted, I mean dizzy from the paint fumes."

With the signing of this non-exclusive agreement, four of the five major music companies have granted Loudeye streaming licenses for music samples. Loudeye signed similar agreements with Universal Music Group (in September), Warner Music Group (in October) and BMG (in December)—which, of course, leaves EMI. Industry watchers expect a Loudeye-EMI pact in the not-too-distant future, especially now that EMI Group Chairman Eric Nicoli could really use a friend.

"Loudeye is dedicated to providing powerful solutions for the authorized delivery of digital music," said Loudeye CEO John T. "Tammy Faye" Baker. "Adding streaming samples of the vast Sony Music catalog to our digital music solutions is a significant step towards realizing that vision."