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Digital distribution contracts are still in their infancy as music industry practices in this area continue to solidify. As digital channels of distribution continue to penetrate the music world, it is increasingly crucial that entertainment professionals understand the nuances of licensing content for use online. This article explores current practices in this area.
A digital download is functionally similar to the sale of a CD single. Therefore, the licensing of musical content for this purpose varies little from the traditional process for albums and songs. The user must obtain both a master-use license from the owner of the sound recording and a mechanical license typically from the publisher for use of the song.
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