The Harry Fox Agency (HFA), the New York-based licensing arm of the National Music Publishers' Assn. (NMPA), has agreed to a licensing pact with online music company Listen.com. The two-year deal will be announced today. Under its terms, in lieu of an established royalty rate for streaming music on-demand
services, San Francisco-based Listen will pay HFA an advance of $500,000 for access to the latter's entire repertoire . If no standardized royalty rate for online music services is set within two years, Listen will pay a monthly advance of $31,250 thereafter.
Listen will use the license for Rhapsody, its online music subscription service that is scheduled to launch Dec. 3. "This deal will simplify the process for adding major and independent label content to Rhapsody in the coming months," says Listen president/CEO Sean Ryan.
The deal was made possible by last month's accord between NMPA and the RIAA that allowed the licensing of musical content for subscription services on the Internet (Bulletin, Oct. 10).