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August 20, 2007


Stephanie Frasco

Hi Erick,

Very interesting post. Imeem also includes a Facebook application that is a hit with Atlantic Records artists. There is a lot to be done in the music sphere and social networking may be great virally but trying to bring in the dollars through networks like this is still a challenge.

David Mullings

This is very interesting for me because my site was just approached by Imeem to launch a branded page at www.realvibez.imeem.com

When I spoke with their Biz Dev. mgr. after being approached, I asked him how Imeem was going to help me make money since that is the point of my own site - banner and video advertising. I can't go into details but suffice it to say that right now, it works as a promotional tool like Youtube for us - but just WAY better.

We can better expose our brand, promote new music and artists, break new videos (they get featured on Imeem's music channel) and then embed them in our Facebook profiles (we use FB extensively). We reach more users, are able to track statistics like listens per day on each song as well as embeds and we can interact with each 'friend' and get to know our users better (marketing research). Imeem is a major highlight for us this year.

I think you hit the nail on the head though - how do you make money by streaming music when I don't have to sit in front of the computer? I think Slacker.com is looking at a similar problem, but have a different approach.

If it was me, I would do the following:

- Have a user indicate companies they don't mind advertising from

- Have 'sponsored playlists' that have AUDIO advertising inserted sparsely

- Get my ad sales team to contact these companies that users indicated they wouldn't mind advertising to them and then sell them on the idea of reaching consumers who WANT to be reached (that must cost more)

I know I would sign up for companies like Nintendo, Electronic Arts, Movie companies, Apple, Nike, etc.

Robert Gorell

Record labels really don't have anything to fear with tools like Imeem and LastFM. They're different models, of course, but these outlets provide real promotions opportunities; much in the way that illegal downloads are often hyped as being "promotional".

Labels need to get creative in terms of how they market online. After a decade of insanity from the corporate music biz, it's good to see they're not freaking out over the Imeem's of our day.

Gerd Leonhard

Eric, this is a good summary but I am afraid it's missing a few key points... so here they are. 1) Imeem became popular because it DID have all the music available for on-demand streaming, without permission by the major labels, for a long time (or so it would seem). If they had not done it this way they would have never become this big, and therefore WMG would have never even talked to them about licensing them to begin with. Is this, therefore, a tacit admission by the major labels that it's better to just use music and not worry about licensing it, until you get big enough to cough up some real $$ for the major labels? Which brings me to point #2: How much of the company does WMG own, now (post settlement of this deal...whatever the actual terms are...), and how much did Imeem's VCs pay WMG to get them to stand down and become all-loving all of a sudden. My hunch is that WMG did not license Imeem purely for a rev share of ads, or just because they thought imeem was soooo cool. Let's find out what really happened here.

And, btw, my own company www.sonific.com has done this the other way round - we got licenses before we used the music. And guess what - we don't have WMG. Figure that.


Hi Erick,

I just found this post, which almost mirrors my own coverage of the companies pushing the new music industry, which I believe will be ad-supported:


Great quote from Dalton. I wish I had found your post before I began writing (would have saved me a lot of trouble!). I've done a lot of research into Imeem, and this is the most outright direct quote I have heard from Caldwell of their ad-rev share vision.

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