Murdoch Investment Boinc Nears Accord With Record Labels, Music Week Says
Beyond Oblivion Inc., a music service 20 percent owned by News Corp. (NWSA), is near accords with major record labels to offer songs on products ranging from PCs to car stereos, the website Music Week reported.
Sony Music Entertainment and Warner Music Group have signed agreements with the company, which calls its service Boinc, the website reported. The company hopes to announce global deals with EMI Group and Universal Music Group in the next two to three weeks, founder Adam Kidron told Music Week.
Boinc, based in New York, plans to license the service for products such as music players and car stereos, with manufacturers paying the fees and passing on the cost to consumers, according to the site. It would work with operating software from Apple Inc., Microsoft Corp. and Google Inc., according to Beyond Oblivion’s website.
Rupert Murdoch’s News Corp. paid $11.2 million in two transactions for its stake, according to company regulatory filings. Other investors include News Corp. Director Emeritus Stanley Shuman, who owns 14 percent and serves on the board of Beyond Oblivion, according to News Corp. regulatory filings.
Music companies such as Citigroup Inc. (C)’s EMI and Vivendi SA (VIV)’s Universal Music are seeking ways to boost sales, backing services like Boinc, ad-supported outlets including Pandora Media Inc. and subscription services such as Spotify Ltd.
“To be successful, the record companies will need a whole number of revenue pools,” Russ Crupnick, an analyst at Port Washington, New York-based NPD Group Inc., said in an interview. “They need solutions in addition to advertising and subscriptions that deliver higher revenue.”
News Corp., owner of the Fox network and Twentieth Century Fox film studio, fell 1.9 percent to $16.70 at the close in New York. The Class A shares have gained 15 percent this year.
To contact the reporter on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
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