New York - Major record label Warner Music Group (NYSE: WMG) has pulled its catalog from free on-demand music streaming service Last.fm, according to reports. The label was the first of the majors to sign a deal to stream its songs for free on Last.fm – which was acquired by CBS (NYSE: CBS) for $280 million — and it may be seeking to improve the terms of its deal with the move.
Two executives briefed on the negotiations told The New York Times that when the term of Warner’s contract with Last.fm came up, the label asked for more money than parent company CBS was willing to pay — while competitors like imeem and MySpace Music offered better deals.
Fees already paid to Warner under its existing deal were also lower than anticipated, and the label was disappointed that Last.fm has yet to deliver a promised for-pay subscription service, the executives told The Times.
New York-based Last.fm said it saw sales originating from its site increase by 58% after it debuted its free streaming feature with songs from all the major labels.
http://snipurl.com/2eq6y (NY Times Bits Blog)
http://snipurl.com/2eq88 (Silicon Alley Insider)