Merlin CEO: major labels are setting new music services up to fail


Gigaom

Merlin CEO Charles Caldas loves subscription music. But he is not so sure about some of the services slated to come to market early next year.

Merlin, a UK-based organization that represents the global digital rights of indie labels from more than 35 countries, is currently talking to Beats Music, Samsung and others about licensing its repertoire to their subscription services. However, Caldas told me that he may not be able to reach a deal with every new service. “There is a possibility that we will have to say no,” he said.

The dispute turns on much the new services are going to pay independent labels — and that’s something that largely depends on the deals music services strike with the majors. Caldas alleged during our conversation that major labels artificially inflate their digital market share by equating it with what they sell in the physical world.

That’s a misguided…

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