INDIES STRIKE BACK WITH MERLIN

Merlin, the world independent record sector's new licensing agency, agreed to its first ever global deal, with the digital music company SNOCAP, as announced last month at MIDEM.

Merlin is the global independent record sector's licensing agency for new media. Merlin will license collectively the individually unlicenseable making it possible for Web 2.0 and emerging media to license content from the world's independent record sector. This sector is responsible for 80% of the new releases worldwide and commands a 30% market share. In terms of market share Merlin potentially is a virtual Major, allowing Indie labels to offer their their tracks for licensing in a one-stop-shopping concept to leading digital platforms such as Yahoo.

The agreement with SNOCAP will enable repertoire from potentially thousands of independent labels across the world to be put into SNOCAP MyStore, SNOCAP's retail initiative, which enables U.S. users to download music from the MySpace Music Service powered by SNOCAP as well as other websites that allow html to be edited.

SNOCAP's partnership with MySpace, already live for unsigned artists and set to launch in the near future for labels, will enable artists signed to independent labels from across the world to sell digital downloads of their music directly from their MySpace pages. The MySpace Music Service, powered by SNOCAP's MyStore, is live for consumers in the United States.

Downloads through the SNOCAP MyStore are sold as unprotected MP3 files, enabling them to be played on all digital music players including Apple's iPod.

The agreement, the first of its kind for Merlin, is a global template deal which will be offered to all members of Merlin across the world over coming days.

Merlin has set the terms by which independents across the world can deliver their repertoire into SNOCAP. Once there, labels can use the SNOCAP MyStore to sell their music through the MySpace Music Service, as well as through any website where users can edit html. SNOCAP's MyStore is a totally portable retail initiative that can spread virally around the Internet.

"This deal epitomizes what SNOCAP's MyStore were designed to achieve - bringing more music to more people. We are thrilled to bring the independent labels and artists that Merlin represents to the digital marketplace and direct to music consumers," said Rusty Rueff SNOCAP CEO.

Charles Caldas, Merlin CEO commented, "SNOCAP has revolutionized how independent labels can distribute music online. Our deal with SNOCAP is a perfect example of the value that Merlin brings to its members and to new music services, by creating an easy one-stop mechanism for both to do business."