• CNNMoney.com, Tuesday, December 11, 2007 1 PM

Social networking pervades all aspects of media life. Now, imeem, a social music startup, wants to reinvent the way music is distributed and shared on the Web. This week, the Web startup, which lets users listen to and share their favorite music online, signed a distribution agreement with Universal Music Group, completing the final piece of the Big Music puzzle for the 3-year-old site.

Indeed, imeem is now the only place on the Web that legally offers free unlimited access to music and video from the four major record labels: BMG, Warner Music, EMI Group, and now, UMG. Imeem's users can stream but not download music. It makes money by selling advertising and sharing revenues with its record label partners.

Thehe label partnerships represent a significant turn of events for the social networking startup-in July, the company had nothing to its name by a major lawsuit. Warner was seeking up to $150,000 per song for rampant copyright infringement. However, the music giant later dropped the suit and sensing an opportunity, jumped on board as imeem's first significant partner. Six months later, the company had enlisted each of the big four. Analysts say the company has managed to draw 3.3 million uniques by drawing on "the best of radio and MP3."

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