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BT plans free music download service

by Sarah Griffiths on 30 March 2011, 10:47

Tags: British Telecom (LON:BT.A)

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Musical madness?

BT is planning a not-for-profit music download service to try and stop its customers illegally sharing tracks.

A leaked Invitation to Tender document has revealed that the service would cater for 5.5 million broadband users across the UK, The Guardian reported.

BT is reportedly planning on unveiling the product ‘in the near future' after it concludes present talks with big music labels like EMI and Universal Music.

Although a ‘free' music service sounds amazing, BT will apparently not make any cash on the service for the first 6 to 9 months, but will begin charging for the service afterwards.

It is currently not known what the subscription model will look like and there have been notable trials and failures before.

Some consumers might be worrying that BT's musical offering will bear some resemblance to Sky Songs, which was BSkyB's music service effort that shut up shop in December. Apparently it was popular with the music industry, but crucially not with consumers.

Some people reckon BT's service might use a freemium model similar to Spotify's, which has proved pretty handy, with 1 million subscribers in Europe.

BT's musical plans have been heralded by commentators as a sign that communications minister Ed Vaizey's meetings between ISPs and rights holders are starting to bear fruit.

Apparently Spotify is strangely absent from the meetings including Universal, Warner, EMI and Sony that are keen to stamp out illegal file sharing, but The Guardian reported that Spotify has been chatting to ISPs behind the scenes.

Apparently the music service is in talks with Virgin Media and a few other big players and it is thought that ISPs might want to buddy up with a partner that has got a great subscription model and growing customer base; instead of trying to go it alone and make a rival of Spotify.



HEXUS Forums :: 1 Comment

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And once established will we see introduction of charging and then a ramping up of that charging over time until the music industry are again pulling in vast amounts of money.

I laughed when I heard news reports about PRS indicating that royalties had fallen for the first time and then everyone linking it to illegal downloads. In the real world the rest of us are experiencing a recession. CD sales down and a lack in growth of online sales does not instantaneously mean that everyone is illegally downloading. Maybe people just don't value music above food, fuel and everything else that has increased in price as well as a fair few who have been or are under threat of redundancy.

Maybe if the record industry is having such hard times, the likes of PRS, PPL, RIAA and MPAA should all take a pay cut or stop charging any fees etc, or maybe hell will freeze over first. I mean 12% of £628m collected by PRS in 2009 is not to be sniffed at, but I wonder how much their pay rises were this year with falling revenues?