June 3, 2008

SpiralFrog.com Signs Deal With EMI Music

Ad-supported, free music and video Web site SpiralFrog.com announced a licensing agreement with EMI Music.

Under the new plan, SpiralFrog Inc will begin to carry content from EMI artists like Coldplay and Keith Urban.

Last September, New York-based SpiralFrog signed a deal with Universal Music Group, another of the four major recording companies.

Universal Music accounted for about 31.2 percent of all U.S. album sales this year through May 25, according to Nielsen SoundScan. EMI accounted for about 8.7 percent.

"You're going to see that users on our site are going to see a lot more content, so there's going to be far fewer searches where they won't find music they're looking for," said Joe Mohen, SpiralFrog's chairman and founder.

The site allows users in the U.S. and Canada to download music and videos from artists for free. It pays labels and other rights holders with ad revenue.

Only members of the site can download media from the site. Downloads from the site are not compatible with Apple Inc's iPods, but they can be downloaded onto certain devices running Microsoft Corp's Windows software.

Although the company said it was seeking other content licensing deal with other labels, but declined to say whether such talks included the two remaining major recording companies - Warner Music Group Corp and Sony BMG Music Entertainment.

Sony BMG and Warner Music together accounted for nearly 46 percent of album sales this year through May 25.

Independent labels, some of which already license content to SpiralFrog, accounted for about 14.1 percent of U.S. album sales, the firm said.

"We will clearly have most major label content on our Web site by the end of the year," Mohen said.

Mohen said the company was still about a year away from turning a profit.


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