Warner Music Licenses Streaming Service

Warner Music Group (www.wmg.com) has licensed its entire catalog to streaming music service, Echo Networks ( www.echo.com). As part of the non-exclusive deal, WMG has the right to acquire a small equity stake in San Francisco-based Echo.

Echo is beta-testing its service, which lets users listen to music from its CD collections from any Internet-connected computer. Users may personalize music streams, take part in chats and share digital music collections with fellow Echo users. The company plans to launch a full version of the free service early next year. Terms of the license were not released.

"Echo is all about applying the Web's best community models to streaming music and these licenses help us realize that vision," said Tuhin Roy, Echo Networks' executive vice president of strategic development, in a statement.

WMG has also licensed its catalog to MP3.com and Musicbank for similar database services. The agreement is the first such license for Echo and the company is negotiating with the other major label groups for similar licenses.