Sony and Grooveshark have come to terms on a licensing deal that would allow all Sony/ATV Music to be legally streamed on the online platform and end all legal disputes between the two firms. If you weren't aware, back in 2011, Warner and Sony came together with Universal in its suit against Grooveshark to combat the high volume of copyrighted material that had been making its way onto the Internet streaming service. Now, after about two years of negotiations, the two companies seem to have found some common ground partially thanks to comparisons made by Grooveshark's CEO of his company to Youtube. Because of the similarities in business model to Youtube that allow for copyrighted content to generate revenue, Grooveshark is making the jump into clear waters and leaving behind its murky past as a bootleg streaming service.
Ultimately, this signals a glaring confirmation that the major labels have shifted their focus to alternative revenue sources outside of record sales and touring. However, based on recent discoveries made by artists on services like Spotify (Daft Punk
was paid less than 10 grand for 100 million plays), this might not be a positive step for the artists. It would seem that the more major labels/publishers continue to play catch up and get with the times, the more likely it is that they'll be sticking around to take inordinate cuts from the profits generated from their new revenue streams. After all, I've said it once, and I'll say it again: it's all about the $$$.