Petteri Pyyny
22 Jun 2004 14:21
One of the oldest online music companies still in the business, American Loudeye, has agreed to purchase British online music service OD2 for $38.6M (€31.9M, £21.2).
OD2 has a slightly different business model compared to its biggest rivals, Apple's iTunes and Napster as the company doesn't operate a music store itself, but rather provides music store solutions, audio file delivery services and licensing services to third party operators. Specially in the UK company has managed to gather rather impressive distribution partners, including Coca-Cola, HMV and Virgin.
Combined company hopes to fight head-to-head with the "big boys" in the rapidly growing legal online music business, especially in Europe where OD2 has a rather strong position because of its brand-name distribution partners.
Source: BBC