signs deal with all four major labels

Last.fmThe digital music rivalry between iTunes and Amazon has reached a new level, with the music industry’s latest bomb shell. Earlier today, the social music network, home of over 15 million active users, signed a deal with all four major labels as well as over 150,000 labels and artists, for a new service, that enables users to listen to their favorite songs on-demand.

As part of the deal, will give users access to any song they like and stream it for free thanks to ad revenue that will come from page views and demographically-specific videos. Listeners are permitted three free streams per song, after which they are given the option of purchasing an mp3 of the song from … you’ve guest it: Amazon.’s track catalog numbers over 3.5 million songs, but the site officials intend to have a full database of all the song’s over made. “The mission is to have every track available,” said co-founder Martin Stiksel. is also considering supporting independent artists, by planning a ad revenue program, in which the artists would be probably paid for the number of streams a track of his gets.

Free music streaming or Internet radio sites have had varying degrees of success in obtaining affordable licenses from music companies. The sites, typically small start-ups, have also been burdened by hefty royalty fees payable to the music industry both in the U.S. and in Britain, because of this petitions, law passings have been made, even a protest day in the form of D-Day, but all in vain. Because reaps the web 2.0 rewards, because of it’s social network status, it has a larger amount of page views, as opposed to let’s say a radio streaming websites like Pandora (which will close it’s UK websites next week), which in term leads to advertising opportunities. Kudos to for taking the music industry one step further.

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