Thursday, July 2, 2009

Music + Technology Briefs: IODA/Sony alliance; Pandora Submission Policy

+ Yesterday's big news came in the form of Sony's deal with digital distributor IODA. [Full disclosure: IODA is the digital distributor for our label].
Sony Music Entertainment has entered into a global partnership with IODA which includes an investment in the digital distributor. IODA will now provide digital services for Sony's RED indie label arm, as well as, offer expanded overseas opportunities. In return, IODA can now offer its labels physical distribution and the stability of a corporate partner with deep pockets.... The exact details of how the two companies will work together are still being worked out.
[via Hypebot]

+ Pandora - the music discovery service that allows users to build their own radio stations - recently made a change to their music submission process.
[Pandora] is now accepting solicitations only from bands who have a physical CD for sale through That requires the artist to manufacture a CD with proper album art and bar code, which is much more expensive than creating a bunch of MP3s, and to pay Amazon $29.95 a year to participate in the Amazon Advantage program; Amazon then takes a 55 percent cut of the list price of the CD.
[via CNET]

The decision did raise some criticism, drawing this response from Pandora founder Tim Westergren:
There are a number of reasons for us to add this requirement. It’s something we’ve been contemplating for a long time. Just to be clear, it's not about making money from Amazon. We don't get any portion of the $29.95, and even though we're thrilled at the amount of music we sell through them, the commissions we get are a small part of the overall business (it's all about advertising). So these requirements have nothing at all to do with revenue.... There are really three principal reasons – user experience, improving the meta data, and managing submissions.
[via Hypebot]

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