Virgin Media, the large cable TV operator and music store chain has announced an unlimited music download subscription service with Universal today, designed to allow all Virgin broadband users in the UK to stream or download as many Universal songs as they want, for a fee.
Of course, entertainment lawyers say the service will do nothing to stop global music piracy, which can amount to “millions in lost revenue” every year for the major labels. Many added that the 25 and under segment of the population will continue to pirate music, while this service may bring in user over the age of 30, who are less prone to unauthorized downloads.
Universal, the biggest major label in the world, includes such popular acts as U2, Elton John, the Rolling Stones, Duffy, Kanye West and Akon.
Virgin adds it remains in talks with other labels in an effort to bring more artists into the service.
The downloadable songs will be in DRM-free MP3 and will be available “later” this year.
IFPI Chairman John Kennedy adds of the deal: “It epitomizes the way in which the music business is adapting to the digital world, embracing new business models and responding to the changing needs of consumers,” Kennedy said of the new service.
“It also marks new ground in ISPs’ willingness to take steps to protect copyrighted content on their networks, and that sets a very encouraging example to the whole industry.”
Virgin also added: “We expect the deal will drive a material reduction in the unauthorized distribution of its repertoire across Virgin Media’s network.”
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Result for: free mp3
eMusic, the online music download store that started in 1998, has announced that it has added music from its first major label, bringing in Sony’s ‘classic’ catalog, all music that is 2 years old or older.
The store has offered a subscription based model and DRM-free MP3s since its release, and has tracks from thousands of indie labels.
During its 11 years, the company has attracted over 400,000 paying customers, each paying $12 USD per month.
Sony feels placing its newer, more popular songs into eMusic’s unlimited, DRM-free service, is too risky and has therefore excluded the songs. However, Sony’s classic catalog is still very large and includes hits from top name artists such as Britney Spears, Billy Joel, Bruce Springsteen and Usher.
There is a catch though. “As part of the deal, eMusic says it will slightly raise prices and reduce the number of downloads for some of its monthly plans.”
Result for: free mp3
Amazon has now expanded its DRM-free MP3 store to Germany, and the service has launched today with 5 million tracks.
Full albums are priced competitively, with the 2000 most popular selling for under €5. The top selling album, Stadtaffe by Peter Fox, is currently selling for €4.89. The top paid download is Lady Gaga’s international hit “Poker Face,” which is selling for €0.97.
“We’re excited to provide our German customers with even more ways to discover and enjoy great music at the same destination where they can buy millions of CDs,” added Amazon EU retail VP Greg Greeley in a statement. “Amazon MP3 offers a vast selection of DRM-free a-la-carte music from major and independent labels, ready to enjoy in seconds with any hardware device in high-quality audio.”
According to the German music industry trade body Bundesverband Musikindustrie (BMI), digital album sales exploded in 2008, moving up to 3.9 million units, a 50 percent increase.
“Amazon’s emphasis on ease of use, consumer choice and satisfaction has won their brand a high level of popularity and credibility with music fans,” noted Bernd Dopp, chairman and CEO Warner Music Central and Eastern Europe. “Amazon MP3 is an exciting development in the evolution of this dynamic online retail experience. The platform now offers a compelling range of digital as well as physical formats from our world class roster of artists, while ensuring that the downloads bought can be played on any device.”
