RealTime IT News

MP3.Com, Cinram Seal Global Licensing Deal

MP3.com Inc. this week inked a $13.3 million deal with Canadian multimedia manufacturer Cinram International Inc. to manufacture its download technologies for global distribution.

Cinram will offer worldwide manufacturing and fulfillment services to MP3.com (MPPP) through its facilities in Canada, the US, Spain, France, Mexico, the Netherlands and the UK. The contract includes 48-hour delivery of MP3.com's current Digital Automatic Music (DAM) CD, which allows users to create special-order compilations of music via the Intenret.

The agreement also stipulates that Cinram will market its services to distributors and artists through the MP3.com site.

"Our expanding base of worldwide artists and consumers mandates that MP3.com deploy these capabilities on a global scale," said Michael Robertson, chairman and chief executive officer of MP3.com. "By aligning ourselves with a world class organization like Cinram, MP3.com is uniquely positioned to take the lead in what is certain to become another integral 'cog' in the new music economy."

The move plays an integral part in Cinram's new e-commerce strategy, according to the company, as music downloads prove to be the next big wave in both industries.

The initiative is the first in a series of Internet-related programs that Cinram expects to announce in the next few months as it extends its current services into the online world, according to Isidore Philosophe, Cinram's chairman and chief executive officer.