Destiny Media Technologies has expanded an agreement with Universal Music Group to be the music titan’s primary method for online distribution of promotional music, video and other content, and to be the only company-wide method for such distribution in the US.
After a successful two-year pilot project, Destiny and Universal Music Group (UMG) have signed this agreement to distribute digital media on a price per delivery basis utilizing Destiny’s secure digital media distribution system, known as MPE, to send UMG media content to radio stations and other industry recipients.
Destiny Media pointed out that some of the benefits UMG and other record labels will continue to enjoy with the MPE system, when compared to distribution of physical CDs, include better control over unauthorized copies, shorter lead times for distribution, significant cost savings on a per user basis and better data tracking.
The mass adoption and tremendous user uptake that the MPE System has achieved in the last two years demonstrates the music industry’s commitment to our digital distribution service, said Steve Vestergaard, president and CEO of Destiny Media. Virtually every major radio broadcast chain is now using the MPE System.
Mr Vestergaard also noted that a variety of other labels participated in the existing pilot program, and predicted that they also will become commercial users of the MPE System. We expect the other labels will also transition from pilots to full commercial usage, in light of the clear and compelling advantages the MPE distribution model has demonstrated, he said. Expanding this agreement with UMG is our first major step in converting the entire industry from physical CD’s to the digital delivery of media.
The MPE system is in use by 773 labels including UMG, EMI, Sony BMG and Warner Music Group. Over 34,000 songs have been sent to radio stations and other trusted recipients since launch, representing 36,500,000 transactions.