I was exchanging emails today with Moriah Jovan and she remarked on the cost of licensing music. This reminded me of an article I read on Techdirt a couple days ago. I haven’t seen this mentioned anywhere, so I thought it worth a post.
Everyone’s talking about how they want to see enhanced ebooks, and of course audio would be relatively easy to do. But the problem with licensing music is that the major record labels like to negotiate by lawsuit:
We’ve heard time and time again from innovative music startup after innovative music startup, that when the major record labels come calling, they do so with outrageous demands for upfront payments, excessively high ongoing royalties and a demand for equity. Quite frequently, the record labels try negotiating through lawsuit, by suing the startup as a part of the “negotiation.” While many of these lead to “settlements,” the results are ridiculously burdensome, leading many of these startups to go out of business.