To Sign With Labels or Not to Sign

Two significant developments in online streaming services:

1 – Online ‘mixtape’ site Muxtape has temporarily closed its virtual doors whilst it ‘sorts out a problem with the RIAA’.
2 – And on the other side of the fence, MusicMakesFriend (essentially Europe’s imeem) struck a deal with Warner Music adding its content to indies.

Morale of the story? If you want to provide music services online you need licenses from the labels….er, not exactly breaking news right, but sites like Muxtape illustrate the fact that there are still plenty of sites who focus on building audience first and ‘legalizing’ later.