The major record label’s CEO Edgar Bronfman Jr has questioned the sustainability of the emerging ad-funded models.
BBC News reports that Bronfman said he wouldn’t be making any more ad-funded access deals.
“Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed,” he said. “[Getting] all [the] music you want for free, and then maybe with a few bells and whistles we can move you to a premium price strategy, is not the kind of approach to business that we will be supporting in the future.”
A Warner spokesman confirmed its current deals with services where there is an ad-funded component, such as Spotify, We7 and MySpace Music, will remain in place.
Warner Music pulled its content from Last.fm in June 2008 following a disagreement over revenues which is ongoing.
It also withdrew its music videos from YouTube in December 2008, citing revenue disputes, only to reinstate the content nine months later.
Last March new media age reported that the ad-funded model was coming under increasing strain, with agencies warning record labels not to pin their hopes on ad revenues (nma 12 March 2009).
This story first appeared on newmediaage.co.uk