Grooveshark Signs Deal With EMIBy: Mike Sachoff - October 14, 2009
Major music label EMI has dropped its copyright infringement lawsuit against music streaming service Grooveshark, reaching a deal to license its recording and publishing catalogs to the site.
"We think services like Grooveshark offer great music discovery options for fans," said Mark Piibe, EMI Music’s Global Head of Digital Business Development.
"In turn, Grooveshark offers a new revenue stream for our artists and will help us learn more about how we can better connect different types of fans with artists."
Grooveshark allows music fans to stream music without having to download software or register. The basic service is available for free and is supported by advertising. Users of the site can pay $3 per month for access to Grooveshark’s premium service, which offers unlimited ad-free streaming music.
Grooveshark still hopes to strike deals with the remaining major record labels including Sony, Warner, and Universal. Those deals could be reached within the next six months.
"EMI Music and EMI Music Publishing have collaborated with us to create a mutually sustainable deal which represents the future of digital music," says Grooveshark CEO Sam Tarantino.
"We will continue to deliver the best music service on the Internet to our users, and we will expand our capacity to strengthen fan-to-artist connections through our technology."
Terms of the deal between Grooveshark and EMI were not disclosed.