Music from the top labels has been a scarce commodity on the Web. But listeners can find top 40 songs in music videos streamed over the Web, and Launch Media has made a business out of hosting these hot properties on its site.
Launch, of Santa Monica, California, added a significant piece to its video catalog Wednesday when Warner Music Group gave the company rights to all of its new and archived music videos.
The company acquired similar rights from EMI and Sony last year, but Launch CEO Dave Goldberg said Warner is the company's biggest prize yet.
"This is the first time ever that Warner has allowed anyone access to their music videos over the Web, and it's access to all their videos ... it's probably the most fantastic catalog in music," Goldeberg said.
Launch currently has about 1,200 videos on its site, and the EMI, Sony, and Warner deals give it rights to about 10,000 more. The company also has deals with Universal and BMG, although its rights to those collections are more limited.
Goldberg estimated that there are about 50,000 music videos in existence, most of which are owned by the labels.
To date, the major labels have been more willing to release videos than songs on the Net because of piracy concerns.
But Launch videos are streamed in Windows Media and RealVideo formats, so users can't capture or redistribute the files. In addition, the quality of the compressed music isn't on a par with CDs.
Sony, EMI, and Warner have all taken equity positions in Launch, and share in its advertising revenues. After getting burned by MTV for so many years, the labels are eager to cash in on a lucrative new side of the music business.
"The labels have a vested interest in making sure we are successful," Goldberg said. "We are really the only true counterweight to MTV on the Internet. The last thing the labels want to see is MTV having a monopoly on the Internet, as they've had on television."
Unlike MTV, Launch lets users view videos on demand so they don't have to sit in front of their sets for hours, waiting to hear a favorite song.
"That's why MTV doesn't show music videos anymore on TV," Goldberg said. "They found that people didn't sit through and watch an entire hour and watch the commercials ... so MTV went to these half-hour shows like the Real World to get people to sit through a half hour."
To build up its programming and community, Launch has recently added an Internet radio component to its site, called Launchcast. Launchcast users can customize channels, rate songs, and receive broadcasts from thousands of radio stations.
