Spanish authors' and publishers' society SGAE has reached a digital distribution deal with Hoodiny Entertainment Group, the U.S.-based full-service technology and content production company.

SGAE has licensed for Spain the repertoire of its 60,000 members to Hoodiny.

A month earlier, Hoodiny affiliate Cyloop.com signed a joint venture with Terra España, the music channel of the country's main Internet service provider (ISP) Telefonica, to create a music-based social network, Terra Cyloop.

The new deal was signed by Hoodiny president in Spain, Francisco Novela, and director of SGAE's mechanical reproduction department, Juan Palomino. Hoodiny president Demian M. Bellumio says, "Terra carefully studied our technology, our business model and the music labels [we work with] before choosing Cyloop to increase the potential of its music channel".

Palomino comments, "The signing of this deal in Spain implies a new advance in the field of digital distribution of music". He recalls that SGAE pioneered the joint digital distribution activity of rights collecting societies when in March 2006 it put into effect with the U.K.'s MCPS-PRS Alliance the project eLOS (electronic Licensing of Online Services), which established an online music licensing model in Europe.

This was followed last year by the formation with France's SACEM and Italy's SIAE of Harmonia, aimed at streamlining the licensing of repertoire at an international level by setting up a single pan-European licence to exploit music content online and through mobile telephone services.

The latest SGAE accord in this area was signed with Peermusic at the Midem trade fair in France in January. Under that deal, SGAE manages Peermusic's catalog of more than 300,000 tracks through online and mobile services.

In addition to thousands of songs, the Hoodiny portal offers a music news service updated daily by a team of journalists, video interviews with artists, taped live performances.

Hoodiny was founded in 2006 and has offices in L.A., Miami and Madrid, and to date has raised over $11 million in venture capital financing. Cyloop.com differs from most music-based social networks in that it is an artist generated and not user generated content community.

In June 2007, the service signed a strategic alliance with Billboard Group to expand digital services to the music industry across Latin America. Hoodiny has business activities in the United States, Spain and 16 Latin American countries. The deal with SGAE is expected to expand Hoodiny's operation and editorial team in Spain.

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