Denver - Digital music distributor IODA has advised the independent record labels it represents not to sign streaming deals with free services like Imeem and Lala.com until it can negotiate more favorable royalty rates, Billboard reported.

IODA has been in talks for months with the services, and said in a letter to member labels that it is "very concerned about partnering with sites that dramatically devalue music, or those that shortchange independent music in favor of the majors."

While both Imeem and Lala do pay royalties, IODA maintains that neither company's deal is what it should be, and advised its label partners not to strike independent deals with the services.

Related Links:
http://snipurl.com/1xqv6 (Billboard)

http://www.imeem.com

http://www.lala.com