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Users reluctant to pay for online tunes

Big Five must play together to boost online sales

James Middleton, vnunet.com 30 Aug 2001
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Research from analyst GartnerG2 has found that paying for and downloading music over the internet won't be catching on any time soon.

Although the recording industry is constantly developing new services to sell music over the web while protecting copyright, users have not tuned into the concept. And they aren't likely to in the near future, according to GartnerG2.

A survey of 4000 adults with web access found that nearly 50 per cent listened to CDs on their PC but only 25 per cent downloaded music.

The research also found that only a tiny six per cent of these adults had actually purchased downloadable music over the internet.

The analyst warned that the percentage of users buying music online is not likely to increase in proportion to new web-based services being developed by the recording industry.

GartnerG2 cited inflexible copyright protection systems as the biggest hurdle for online music.

The report goes against the music industry's expectations that paid-for music downloads will rocket in the coming months. But GartnerG2 reckons that unless the big five music labels - Universal, Sony, AOL Time Warner, EMI and Bertelsmann - agree on a common distribution platform, online music will go unheard.

With companies investigating different methods of copyright protection, the analyst reckons that users will become alienated.

"Any digital rights management solution deployed should work with all music software and hardware. In order for this to happen, the big five labels need to work together, and that doesn't look hopeful before 2002," said the report.

See also:

Auntie gets cuddly with Ogg Vorbis  29 Jan 2002
Accuses recording association of monopolising the industry  12 Oct 2001
File-swapping firm finally settles lawsuit  25 Sep 2001
Bertelsmann to stop illegal CD copying in its tracks  05 Sep 2001
Ogg Vorbis considered by many to be a superior technology.  14 Aug 2001
music_leAntitrust investigation into online music distribution follows legislation.  06 Aug 2001
The European Commission is to investigate online music ventures MusicNet and Duet, the two internet services run by the five major record labels.  12 Jun 2001
NapsterNapster, the website, was built as a central host for users wishing to swap MP3 music files. It has sparked an almighty legal battle over its legitamacy and has changed the way people obtain music.  01 May 2001

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