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July 20, 2011

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Baidu deal on song downloads

BAIDU Inc, owner of China's most popular Internet-search engine, yesterday said it is to introduce a patented music-streaming and download service based on a licensing deal with three leading music companies in a bid to create a more legitimate business model.

The agreement between Baidu and One-Stop China, a joint venture involving Universal Music, Warner Music and Sony Music, will allow Baidu to access the trio's music database and new tracks, including songs by artists including Lady Gaga.

Liu Ping, secretary-general of the Music Copyright Society of China, said: "Baidu's move will push forward the legalization of accessing music on the Internet."

Baidu's Chief Financial Officer Jennifer Li said: "I am confident that Baidu, Chinese music fans, recording artists and record companies alike will benefit from this partnership."

The company will pay copyright owners each time a song is played or downloaded.

Baidu "won't lose money" from the agreement, as sales of advertising will more than offset the cost of license fees, spokesman Kaiser Kuo said.

In 2007, Google China partnered Top100.cn to provide a similar licensed music streaming service in an advertising supported project.

Sun Peilin, a researcher of Beijing-based Analysys International said: "Baidu needs to compete with other online music service providers such as QQ Music, Sina and Shanda, and copyright is a key issue."

The three music labels involved in the joint venture will offer more than 500,000 songs through Baidu. Users can access them via ting.baidu.com.

Baidu plans later to launch a fee-based service allowing users to download music to computers.

Baidu is adding services and bolstering partnerships with technology companies, including Microsoft Corp, to lure web users in China from domestic rivals like Alibaba Group.

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