Posted: Tue., Jun. 10, 2008, 8:00pm PT

Merlin seeks digital deals

Nonprofit org negotiating with online outlets

Merlin, the recently formed nonprofit organization that represents 12,000 labels in the digital space, has cracked 8% market share and is now negotiating overall deals with Last.FM, MySpace and other digital outlets.

The focus for Merlin, announced at Midem in January and now in operation for about six weeks, is on subscription and all-you-can-eat services.

"The straight download model is stagnant in growth. Subscription models, legitimate peer-to-peer services and ad-funded sites will all have roles to play," Merlin CEO Charles Caldas said Tuesday. "The challenge for indies has been how do you participate in these ventures. It has been difficult to get a level of participation equal to the majors."

Merlin, based in the Netherlands and London, boats a membership that includes Koch, Epitaph, Ioda, Beggars and Concord. Its European members represent 72% of Europe's top 60 independent albums for the past three years. In the U.K., Merlin companies released three-quarters of the top 75 independent albums in 2007.

Company is the world's first global rights body for independent music. All decisions will be made by a board; all profits will be distributed to members that participate in a particular program.

"Independents have been conspicuously absent" from deals with significant content providers, Caldas said, noting that Merlin provides one-stop shopping for services that want to offer music. "They have not had the clout to participate. We represent a valuable repertoire and offer an entity for MySpace to negotiate with."


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