Digital music provider Loudeye acquires a major European rival
Seattle-based Loudeye Corp., business-to-business provider of digital media, has acquired On Demand Distribution Ltd., the largest digital music provider in Europe. The company says the combination will double Loudeye`s revenues and create the largest business-to-business digital media company in the world. Loudeye provides digital music and video to businesses to support digital music stores and other digital outlets.
Loudeye says the combined company will have the largest licensed music catalog of any provider in the world, including 1.3 million tracks licensed for Europe from the five major labels as well as hundreds of independent labels.
"This significantly strengthens our solutions for our customers globally and immediately expands our customer relationships and partner opportunities,” said Jeff Cavins, Loudeye`s president and CEO. “Together OD2 and Loudeye deliver a powerful, next-generation digital media platform to enable companies to launch complete digital music offerings around the world. In addition, this will globalize Loudeye`s content management, piracy protection and promotion services and will enable us to leverage OD2`s broad reach and strong customer relationships to expand our business into new markets."
On Demand Distribution was founded by rock musician Peter Gabriel, of Genesis fame, and Charles Grimsdale, CEO.
Loudeye is paying about $20.7 million for On Demand Distribution, with shareholders able to earn up to another $18.8 million based on performance goals.
On Demand Distribution says it is the only company with digital music distribution rights for all major European countries from all five major recorded music companies as well as Europe`s largest independent recorded music companies. It provides the infrastructure for over 35 online retailers, portals, ISPs, telcos and other consumer brands, and powers digital music stores in 12 countries. It has a database of more than 750,000 registered customers and employs 80. It is headquartered in Bristol, United Kingdom.
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