Musicmaker.Com And America Online Forge $20 Million Music Marketing Agreement

EDP Weekly's IT Monitor, Sept 27, 1999

Custom CDs And Digital Downloads From 200,000 Music Tracks Made Available To AOL Members

Online service America Online Inc. and musicmaker.com, a custom CD service and licensed digital download site on the Internet, have reached a deal for musicmaker.com to offer custom CDs and downloadable music across AOL's family of brands.

The three-year, $20 million agreement calls for musicmaker.com to sell personalized CD compilations and secure digital music downloads on America Online's AOL service, AOL.COM, Netscape Netcenter, and ICQ, as well as on two of its new music brands, Spinner and Winamp. The marketing pact marks the latest in a series of AOL initiatives to tap into the online music category.

Visitors to AOL will have access to musicmaker.com's library of 200,000 music tracks from over 100 labels, including content from Fantasy, Jive, Platinum and EMI music, one of the largest major record labels in the world and the home of Virgin Records and Capital Records. Musicmaker.com also has an exclusive five-year agreement with Zomba, the world's largest independent music group with such leading pop artists as the Backstreet Boys, Britney Spears, R. Kelly and Too Short.

AOL and musicmaker.com will cross-promote their music sales through reciprocal links, advertising and other marketing initiatives. Musicmaker.com also will develop co-branded sites with the AOL service, AOL.COM, Netscape Netcenter, ICQ, Spinner and Winamp for custom CD sales and digital music downloads. The two companies will also premiere music tracks exclusive to musicmaker.com's extensive catalog throughout the year, including during the holiday shopping season.

Under the deal, musicmaker.com is making more than $18 million in guaranteed payments to America Online, while the companies also will share in the profits from music products sold through the AOL brands. America Online will also take a $2 million equity stake in musicmaker.com.