In a letter to its labels this week, digital distributor IODA recommended not granting licenses to prominent net services imeem, LaLa and others that offer full song streams due to inferior royalty structures. According to the letter, "imeem proposes to pay out a percentage of advertising revenue from its site, but will not thus far commit to a base per-stream floor rate...in contrast to the deals many of the majors received". IODA CEO Kevin Arnold said further that Lala intends to "stream full songs for free on its' site in the hope that these streams will result in sales of downloads and CDs. They have proposed a complex payment structure...that includes caps on streaming payments which would result in rates uncomfortably below the levels paid by other streaming services. (Hypebot)
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