UMG parterning with Guerva, will offer free downloads for their consumers, paid by the advertisers they contract with. The two conglomerates will launch this ad based model in February of 2010.
The Australia-based Guvera, founded in 2009, brings to the table a built-in framework for offering downloads paid for by advertisers. It's a way for content owners to profit from their music
Guvera, in turn, matches these consumer profiles and preferences with a brand's "personality." A search for a particular song, artist or genre will direct the user to relevant brand channels that provide these tracks or groupings of tracks.
Once music is downloaded, the brands will pay a fee to content providers, allowing the label to receive a percentage of that fee to distribute back to their artists.
It sounds good, but depending on an artists' contract, how much revenue will actually cycle back to the artist themselves? I am kind of skeptical about this model, because it further allows the labels to control more of the revenue that artists are entitled to. I don't think this model will curtail piracy either. The bottomline is that there are some people out there that will pirate and steal no matter what model is offered to them.
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