November 20, 2009

By By Antony Bruno, Denver

MySpace Music and independent music aggregator Merlin buried the hatchet with a deal that adds the company's roster of independent labels to the online streaming music service.

While financial details of the arrangement were not disclosed, the deal offers Merlin and its members "an opportunity to participate in and benefit from the financial growth of MySpace Music," according to a statement released from MySpace Music today.

Additionally, the deal allows Merlin to assign, attend and participate in certain meetings of MySpace Music's board. The board consists of representatives from the four major record labels and MySpace. Merlin is not a member of the board, but will serve in more of an advisory and informative role.

MySpace Music says it will offer the same terms to all independent labels and their representatives, one of the reasons the deal took so long. Merlin was the staunchest opponent of the MySpace Music venture since it launched last September. The company's CEO, Charles Caldas, complained that independent labels were not given a fair deal in the joint venture, as the major music labels - with whom independent labels compete - benefit from the financial performance of the music service in addition to their licensing deals.

Merlin counts such independent labels as Beggars Group, Epitaph and E1 Music as members. Independent label aggregators IODA, the Orchard and others struck separate deals with MySpace Music in the months immediately following the service's launch.

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