Having written off its original $16 million investment in music streaming service Imeem, not to mention letting it off $4 million in royalties, you might think WMG would be steering clear from now on. Not so.US blog All Things Digital is reporting that the label has actually taken MORE equity in Imeem, except this time it's not stumping up any cash for it. Instead, the larger stake is “in exchange for a renegotiated licensing deal that is supposed to 1) give Imeem a better chance of being able to pay Warner for use of its music and 2) reduce the amount of cash Imeem does pay out to Warner every quarter”.Startups have been publicly keen for labels to cut them more slack when it comes to licensing costs, but it remains to be seen whether giving up more equity as a result works out well for both parties.
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