As expected, America Online is inching closer to finalizing an agreement for video-on-demand rights to Sony BMG Music Entertainment repertoire, published reports say.

NEW YORK -- As expected, America Online is inching closer to finalizing an agreement for video-on-demand rights to Sony BMG Music Entertainment repertoire, published reports say.

The deal, tipped May 19 on Billboard.biz, is said to be worth more than $25 million.

The pact between AOL and Sony BMG is understood to have an element of exclusivity -- though the extent of how much content AOL will have sole access to is the subject of ongoing negotiation.

The major label is notifying all other digital music programmers to remove Sony BMG video content from their services in anticipation of the pact.

Other digital music services are said to be in talks with Sony BMG for VOD rights.

Questions? Comments? Let us know: @billboardbiz

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