Destra has expanded its online music business with a new licensing deal with independent US music distributor, CD Baby.
Through the agreement the company has gained an additional 500,000 tracks taking its stable to 1.3 million.
Destra is now the largest online catalogue in the country, claimed CEO Domenic Carosa. It’s nearest rival had around one million tracks under licence, he said.
The deal is one of many signed recently aimed at aggressively growing the content side of the business.
In late December the company acquired local independent record label Rajon Music & Video Group and expanded its deal with Sony BMG in November to provide content for mobile phones.
Explaining the ramp-up, Carosa said the market was rapidly turning from illegal to legal download providers.
“IDC is forecasting that the market will grow 45 times over in the next four years so there is significant growth [which] will occur in this marketplace,” he said.
For Carosa the expansion of the company’s video content was also a major focus. Since launching its music clip service in September the company’s catalogue had tripled to 15,000.
“We see video as the next major step for the company,” he said. “With high-speed broadband penetration, videos are much more attractive to stream and download.
“Google’s announcement that it is moving into video is also proof that the market is expanding rapidly.”
More than 2500 outlets — including JB HiFi, Harvey Norman and Sanity — were now distributing Destra’s content across Australia, Carosa said.
“We now have an offline and online approach,” he said. “It all comes back to our clicks and mortar strategy."
Destra was currently in negotiations with several providers for the supply of additional content, Carosa said.
Destra continues content push
By Tim Lohman on Jan 11, 2006 10:18AM