Entertainment One has announced to its staff and labels that it will cease all physical distribution and will only be a digital distributor going forward.
As part of their announcement and decision moving forward, the company has signed a deal with Warner Music Group’s Alternative Distribution Alliance, which will now be handling any physical distribution for Entertainment One’s owned labels.
However, Entertainment One’s decision to remain a digital distributor may cause them some issues in the future.
Different sources have speculated as to whether or not Entertainment One is breaching their distribution contract agreements by ending its role as a physical distributor.
The company has told labels that they will have to find their own solutions for physical distribution, which may allow those labels to simply walk out of their contracts.
Red House, Putumayo, Shanachie Entertainment, Real World, SPV, Silva Screen America, Tuff Gong, Pandisc, Sunnyside, and Righteous Babe Records are among the labels that Entertainment One currently distributes for.
The company hasn’t yet announced the details of how their move will unfold, but Warner’s role in the deal has been set in stone.
It would seem, in fact, that Warner is a highly sought-out company these days.
Being the company that produced seven seasons of The Dukes of Hazzard and other hit shows, movies, and artists, it makes sense that YouTube would want to bring in former head of Warner Music Group Lyor Cohen to build up its music service.
The hope is that Cohen will be to YouTube’s music service what Jimmy Jovine was to apple and Dr. Dre was to Spotify.
In addition to being the former head of Warner Music Group and president of Def Jam, Cohen most recently created a new label, 300 Entertainment.
Google, which owns YouTube, was involved there, too. The search engine invested $5 million in the label in 2013.
It’s no question that Google wants YouTube to become a music destination for users, and the addition of Cohen to the team may just help the company get closer to that goal.
Though Cohen is no longer with Warner, it certainly seems as though the company is everywhere.
ADA president Eliah Seton issued a statement on eOne’s decision to enter into a deal with the company.
“eOne is a well-known powerhouse in media and entertainment and we are honored that they chose ADA as a long term partner as they evolve their music business,” he said.