January 22, 2007

Warner Music Group has made two digital deals. The first, reported by Billboard.biz, is an acquisition of German-based digital music distributor Zebralution. The company deals with independent labels and operates in numerous regions around the world.

The other, announced via press release, is a strategic content and revenue partnership with Paris-based Dailymotion, the world's second largest video sharing website. The deal has a few facets. First, it allows for Dailymotion users to incorporate WMG's music content in videos they create and upload to the site. Second, WMG will provide video content, including interviews and behind-the-scenes footage, to Dailymotion.

How will WMG get paid? WMG says Dailymotion's "new content fingerprinting system" (due later this year) will identify its content for purposes of calculating royalties. It looks like the artist has approval over use of material at the site. The fingerprinting system, says WMG, can also be used to locate and remove content at the artist's discretion.

One has to imagine if the fingerprinting system will work sufficiently. It's doubtful that WMG would sign off on this deal if the technology was not feasible. Then again, it inked a deal with YouTube with only a promise of such a system. YouTube had pledged to labels a workable content identification and royalty reporting system, but is past its implementation deadline.

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Posted by Glenn at 1:18 PM | | | Warner Music Group