Digital programmers told to take down content.
Sony BMG is now requiring compensation for the inclusion of its repertoire in online video-on-demand services.
The major label struck a VOD distribution agreement with a yet unannounced leading online portal—multiple sources tell Billboard.biz that the deal is with America Online—and is notifying all other digital music programmers they need to remove their Sony BMG video content from their services in the wake of the pact.
Yahoo and MTV have yet to take down their videos; however other services including RealNetworks have removed Sony BMG content from ad-supported VOD areas on rollingstone.com and the Real Guide. Videos continue to be offered inside the Rhapsody subscription environment.
While the presumed agreement between AOL and Sony BMG is understood to have an element of exclusivity, other digital music services are said to be in talks with Sony BMG for VOD pacts.
The move leaves many of the leading digital music services on the web without VOD content from Sony BMG, Universal Music Group or both.
Sony BMG and AOL declined comment.