Warner Music and Dailymotion Enter Strategic Video Distribution and Revenue Partnership

01/22/07

Warner Music becomes first music company to announce strategic content alliance with leading user-generated content site

Warner Music Group and Dailymotion, the world's second largest worldwide video sharing website, today announced a global strategic partnership that will see Warner Music video content distributed on Dailymotion. In addition to music videos from Warner Music's extensive roster of leading local and global artists, material such as artist interviews, programming, and behind-the-scenes footage will also be made available. Furthermore, Dailymotion users will be able to incorporate music from Warner Music's world-renowned recorded music catalog into the videos they create and upload onto the site. This agreement, initiated by Warner Music France (Dailymotion is headquartered in Paris), is the first time Dailymotion has entered into a wide-ranging alliance with a music content company and emphasizes Warner Music's ongoing commitment to enable music fans around the world to interact with its artists in innovative and exciting ways..

WMG, one of the world's largest music companies and parent company to record labels including Atlantic, Warner Bros., Asylum, Bad Boy, Cordless, East West, Nonesuch, Reprise, Rhino, Rykodisc, Sire and Word, among others, will make available its entire video catalog cleared for Internet use to Dailymotion. The agreement will allow WMG artists to reach a whole new audience, whilst enriching users' experience of the Dailymotion site. Harnessing the financial potential of the video-sharing phenomenon, Warner Music and Dailymotion will split revenue from advertising on both Warner Music videos and user-generated content. The monetization of user-generated content will be made possible through the introduction of Dailymotion's new content fingerprinting system, which will identify use of content owners' material for the purposes of royalty reporting. This technology also enables Warner Music to locate copyrighted material and request it is taken down from the site if an artist elects to remove it, thus facilitating Warner Music's ability to take steps on behalf of its artists. Dailymotion's content fingerprinting system is set to launch later this year. .

Alex Zubillaga, EVP Business Development and Digital Strategy, commented, “We are delighted to be working with Dailymotion, whose commitment to empowering their users' creativity on a global scale reflects our own approach to online communities. A common theme in our strategic partnerships around the world is that we seek to embrace the new ways people interact with music, while also respecting the rights of copyright holders. This agreement with Dailymotion is another great example of how we can apply those principles via a compelling and relevant outlet that benefits artists and fans alike.”.

Thierry Chassagne, President of Warner Music France added, “We are proud to be the first major music company to partner with Dailymotion, a company that has achieved fantastic success by creating an international network of local cultures and communities. This is an especially exciting agreement for Warner Music in France, where Dailymotion's online community is such a vibrant place for people to interact, and we look forward to working with them to further enhance their users' experience.”.

“We're very excited to partner with Warner Music, which makes available its fantastic global roster to our internet user community”, said Benjamin Bejbaum, CEO and Co-Founder of Dailymotion. “We've chosen Warner Music as our first music company to work with because they have been quick to understand – and act upon - new patterns of music consumption. This partnership will enable Warner Music together with its artists to support the use of their content within user videos and to allow our community to interact with WMG music in new creative ways."

This is the latest announcement to highlight Warner Music's commitment to innovation in the digital space. Throughout 2006, the company pioneered a range of new methods of delivering music content, working with category leaders in online and mobile to establish groundbreaking new business models. Among the strategic partnerships Warner Music has recently announced around the world are agreements with Beeline, one of Russia's leading mobile networks, China Unicom, the world's third-largest mobile operator, Televisa, globally renowned creator of Spanish-language TV and entertainment content, and SK Telecom, Korea's foremost broadband and wireless provider.

About Dailymotion

Founded in February 2005, Dailymotion is the n°2 worldwide video sharing website for people to share and to watch original videos worldwide. Dailymotion allows people to easily upload and share video clips on www.dailymotion.com. Dailymotion is today part of the top 100 most visited websites with more than 28 million page views every day, 15,000 new videos uploaded daily and 1,6 million visitors per day.

About Warner Music Group

Warner Music Group became the only stand-alone music company to be publicly traded in the United States in May 2005. With its broad roster of new stars and legendary artists, Warner Music Group is home to a collection of the best-known record labels in the music industry including Asylum, Atlantic, Bad Boy, Cordless, East West, Elektra, Lava, Maverick, Nonesuch, Perfect Game, Reprise, Rhino, Rykodisc, Sire, Warner Bros. and Word. Warner Music International, a leading company in national and international repertoire, operates through numerous international affiliates and licensees in more than 50 countries. Warner Music Group also includes Warner/Chappell Music, one of the world's leading music publishers.

Source: Warner Music Group