UK Indie Labels Cut Deal for Legal P2P Sharing

Sep 22nd, 2006 | By | Category: Digital Music

arvato mobilearvato mobile, a leading European mobile entertainment provider, has announced a collective licensing deal with The Association of Independent Music (AIM), a non-profit trade that represents UK independent record labels. The agreement will allow repertoire from AIM’s 900+ member labels to be made available, on an opt-in basis, across Europe and Japan over arvato mobile’s gnab service, a legal peer-to-peer file sharing service.

Launched earlier this summer, gnab is the first fully licensed P2P network, a platform currently spanning Europe and Japan, but with new licensing deals expanding its reach daily. The system already powers the online stores for German music retailer jpc, PixBox, the download service of leading Spanish ISP/Network conglomerate Terra Telefonica, and in2movies, the first German “ownload“ platform for digital download of movies and TV series.

UK independent signed artists include Bjork, The Killers, Bloc Party, Thom Yorke, The Raconteurs, Stereophonics, Franz Ferdinand, Editors, Jose Gonzalez, The White Stripes, The Strokes, Basement Jaxx, Morrissey, The Prodigy, Paul Weller, Pixies, Kaiser Chiefs, Antony & The Johnsons, Robert Plant, Nitin Sawnhey, Elbow, Arctic Monkeys, Arcade Fire, Royksopp, Roots Manuva, Coldcut, M.I.A., and thousands of others.

The agreement initially licenses gnab for digital downloads, with deals for subscriptions and video downloads expected to follow shortly

gnab enables its online retailers to combine a centralised library of downloadable content with a fully licensed P2P system and an online entertainment store. Visitors to online stores utilising gnab have the ability to browse music, videos and other content from computers of gnab users within a particular country, as well as from a centralised server.

Individual users receive credits to their accounts for sharing files (with the appropriate DRM key), which they place in the relevant ‘my shared music’ folder. The rewards for content shared are set by each retailer using the gnab system.

gnab can also accommodate dynamic pricing models whereby consumers pay less for older material, often offered in bundles, and a higher price for premium content – rarer or more in-demand product. It is hoped that variable pricing may yet prove a particularly useful tool in enticing European consumers to sample the more obscure and eclectic acts fostered by UK independent labels.

AIM is the first organisation to agree a collective licensing deal for the gnab service on behalf of multiple independent labels, although gnab has deals in place with leading aggregators and all four major labels.

Said Alison Wenham, AIM Chairman and Chief Executive, “arvato mobile has an extensive business throughout the world in the delivery of online and mobile music, and AIM members can now take full advantage of the opportunities to work with one of Europe’s leading suppliers of music.”

‚ÄúBy reaching this agreement, AIM has again demonstrated its progressive approach to digital music,” said Richard Wahlen, Vice President of digital development and distribution for arvato mobile. “Licensed P2P and online music stores will enable consumers to access more music, allow retailers to offer more interesting music products, provide new revenue streams for AIM member labels, and strengthen arvato mobile’s position as one of Europe’s leading digital service providers. gnab is an innovative milestone on the way to a new digital download era.‚Äú

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