Staying with all things digital, and SonyBMG have followed the lead established by the Universal Music Group and have introduced a new payment system for the use of their videos on online on-demand-video platforms.
As previously reported, Universal were the first record company to reposition music videos as an online revenue stream. Prior to that decision, music websites could offer their users on-demand music videos with a simple blanket licence - for the record label the music video was just a marketing tool through which to promote audio releases. However, following Universal's re-evaluation of the music video, music websites now have to pay a fee every time one of their users streams a Universal video, meaning the major label can now truly profit from their pop promos.
Once the key online music video services agreed to Universal's new terms it was only a matter of time until the other major labels followed. SonyBMG divisions J and Arista records have now reportedly made a move, alerting music websites that they must stop streaming their videos until they have reached an agreement with their parent company.
They have sent a letter to key music websites saying: "As a result of a new policy implemented on behalf of J Records and Arista Records by our parent company Sony BMG, all video streams of J Records and Arista Records artists must be removed from your website or on-line distribution platform. A formal notification from Sony BMG Business Affairs setting forth the end-date on which the videos need to be removed is forthcoming, along with information on how to license our videos for use in the future."
Insiders expect key digital music players like AOL Music and MSN Music to reluctantly comply with SonyBMG's new restrictions.