Social music network MOG has signed deals with all four major labels and several indie aggregators to launch an unlimited on-demand streaming service that will cost $5 per month starting November 26, 2009. Originally the plan was to offer this as a free, ad-supported service but MOG argumented that the high cost of licensing on-demand music for the United States makes that impossible.

The argument also undermines the business model of Spotify which exists as a free ad driven service and as a paid subscription. The company wants to launch the same model in the US now, but critics argue that with so many labels refusing to license any free, ad-supported music service, the future for Spotify might not be that bright. It’s also the reason why Spotify’s Daniel Ek wants to get read of the fee per play.

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Although some said that the MMN was having financial trouble due to adjusting their payment schedule from 60 to 120 days, the network now announces that it will set its payment schedule to 60 days. Here’s the message which was sent to affiliates:

MMN affiliates,

This email provides an update regarding the near term payout schedule as we adjust to net 60 days from 120 days.

MOG intends to issue May and June earnings by October 7^th (the 5^th business day of the month), July earnings by October 21^st, and August earnings by November 6^th (the 5^th business day of the month). By following this schedule, we will fully adjust to net 60. Note all payouts are subject to a $50 threshold.

The first round of payouts (May, June) incrementally adjusts our schedule to net 90, not 60. We intended to adjust to net 60 by issuing May, June and July earnings by October 7^th; however, due to an untimely clerical error, we cannot issue July earnings until October 21^st. Please accept our apologies for this oversight.

It’s important that we update you on your monthly earnings and your respective payout schedules. Thank you for working with us, and we look forward to completing the implementation of the new 60 day payout cycle next month.

Best,

The MOG Music Network (MMN) Team

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