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Wed, 13 Feb 2008 21:33:47 +0000
Chester Higgins Jr. The New York Times Mainstream music industry realizes the value of free By Victoria Shannon Published January E Mail Article Listen to Article Printer Friendly Column Format Translate Share Article Text Size CANNES The mainstream music industry is coming to recognize a price for digital songs that might be good enough to compete with the underground exchange of tunes on the Internet free. It is a new and abrupt acceptance in a business that has been desperate for a defense against the steady erosion in overall sales of recorded music. Last year likely saw another percent decline to . billion globally a trade group estimates compared with billion in . The pressure is totally toward free Ted Cohen a music industry analyst and former EMI digital music executive said at the annual Midem music business conference here. Unlike their predecessors the new field of free digital services may even have Top tracks that consumers can download keep and sometimes copy. The catch For the most part it is being exposed to advertising. The latest Web site to join the ad supported free music bandwagon Qtrax had a coming out party Sunday complete with rap stars and invitation only concerts. Hyping itself as the world s first free and legal peer to peer music service Qtrax blanketed the start of the music market with posters free flash drives and snappy slogans. Multimedia Video Music industry gathers in Cannes View Related Articles An offer of free music downloads from major labels hits a roadblock Today in Technology Media As Nokia gets bigger rivals get hungrier Google The fox in the telecom henhouse Good Web design can mean good business Qtrax says it is opening its virtual doors Monday with all of the major record labels signed on adding that it has a selection of million tracks. But that total comes from an estimate of all the tracks available on LimeWire and other peer to peer networks not just commercial and licensed releases from the record companies and so may not represent actual customer choice. Industry observers had other questions about the Qtrax approach which despite five years of spade work was still missing a few details at its opening. But Qtrax says it offers a version of free that is better than the pirated music networks It will come without the computer viruses spyware and other technical obstacles that peer to peer music networks are known for and it will incorporate elements of social networks and fan sites. But free is relative. Its tracks will not be free of software restrictions that would limit their usefulness to consumers Qtrax would not detail the limits Sunday. Outside of the Apple ecosystem of digital music which ties purchased songs to its brand of player the choice for consumers seems to be coming down to music that is free of monetary cost but restricted or music for a set price that can be played on any device. A year ago many in the record business were dismissive and downright suspicious of letting their music loose on the Web in the plain vanilla MP format without being controlled by a set of digital locks and keys known as digital rights management or DRM. But in just the past seven months all four of the major recording companies have agreed to allow DRM free licensing of their catalogs of music. Earlier this month Amazon MP the online retailer s new music store signed up Sony BMG s unrestricted catalog with individual tracks for sale at cents each. Last week Last.fm the British music site owned by CBS announced that it would open up its service which streams music to personal computers like a radio station for free. At the same time Yahoo let word out that it was in talks about an advertising driven free service as well. Today s wave has been building for some time. The people behind Qtrax and We the British free download service backed by the musician Peter Gabriel for instance were talking up their approaches in Cannes a year ago. Others like Spiral Frog and Mashboxx have seen their moment in the sun come and go. Record label executives with billion dollar businesses that still rely on sales of CDs were careful not to be too enthusiastic about the free model. We are very committed to the CD said Jean Bernard L vy chief executive of Vivendi said at Midem on Saturday. Vivendi based in Paris owns the largest record label Universal Music Group whose digital portion of total music sales grew to percent last year mirroring the pace of the industry as a whole. Harvey Goldsmith managing director of Artiste Management Productions said he was not ready to write off the pay per download business. There s no such thing as a free lunch he warned at Midem. Analysts are keeping a wary eye on the free wave as well. Michael Altberg a credit analyst at Standard Poor s wrote in a report last week that despite obvious benefits we are uncertain whether the proliferation of DRM free la carte downloads will help boost overall digital sales anytime soon and we believe the absence of security software poses significant risks for further increases in piracy. Next Page Back to top Home Technology Media IHT.com Home Latest News Rebeca Argudo for The New York Times Where others see cruelty Dominicans see culture In the Dominican Republic cockfighting is celebrated as a symbol of the country s warrior spirit. In Opinion Roger Cohen Here comes Kosovo More Headlines In tribal Pakistan religious parties are foundering Michelle Obama takes to the trail EU executive calls for creation of a European border patrol East Timor s road ahead is clouded by uncertainty Video See all videos The mortgage fallout spreads American borrowers with good credit are now facing financial difficulties. The Week Ahead Feb. The IHT s managing editor Alison Smale discusses the week in world news. Kenya s professionals caught in the middle Kenya s vibrant middle class anxiously tries to stay in business. A bus of women s own Mexico City has been running a women s only bus service in response to complaints of groping. Movie Minutes Fool s Gold A.O. Scott reviews Fool s Gold starring Matthew McConaughey and Kate Hudson. Romney drops out John Harwood discusses whether or not Mitt Romney s withdrawal is good or bad news for John McCain. Super Tuesday The European reaction The IHT s managing editor discusses the results of the presidential nominating contests in U.S. states. Undecided voters in New York For these undecided democrats Tuesday was the deadline for making a decision and casting their ballots. The Week Ahead The IHT s managing editor Alison Smale discusses the week in world news. New York City s immigrant vote New immigrants to the United States share their opinions as they prepare to cast their ballots. Most E Mailed Hours Days Days . The other health care issue Getting costs down . Roger Cohen Here comes Kosovo . Rudd apologizes to Australia s Aborigines . Spielberg quits Olympics work to protest Chinese inaction . Totally spent . Clinton the woman . Obama and McCain sweep primaries . Malaysia s prime minister dissolves parliament . Georgian opposition leader dies in UK after complaining of plot to kill him . UBS names new investment chief . Studies conclude that biofuels are not so green . Shrinking ad revenue realigns U.S. newspaper industry . Spain gets women s measurements down . Study on diabetics blood sugar stuns doctors . Universities rush to set up outposts abroad . Sudanese refugees flood into Chad pushing the region deeper into chaos . How blackness has figured in the Obama campaign . EU plans to require biometrics of all non European visitors . In manga Bible the tough guy is Jesus . U.S. mortgage crisis spreads past subprime loans . Tests find hazardous levels of mercury in tuna sushi in New York . Studies conclude that biofuels are not so green . Personal Best Staying a step ahead of aging . Honoring Nazi victims as witnesses fade . Symptoms Metabolic syndrome is tied to diet soda . Shrinking ad revenue realigns U.S. newspaper industry . New NATO intelligence chief was trained by KGB . Spain gets women s measurements down . Study on diabetics blood sugar stuns doctors . Universities rush to set up outposts abroad iht.com biz Global insights from Business with Reuters More from Reuters top analysts James Saft Inside World Markets Paul Taylor Inside Europe Wei Gu Asia Economic Insight Alan Wheatley Inside Asia Search News Americas Europe Asia Pacific Africa Middle East Technology Media Health Science Sports Features Culture Style Design Travel At Home Abroad Special Reports Blogs Reader Discussions Weather Business Business with Reuters World Markets Currencies Commodities Portfolios Your Money Funds Insite Opinion Opinion Home Email the Editor Newspaper Masthead Classifieds Classifieds Home Properties Education Center Company Info About the IHT Advertise in the IHT IHT Events Press Office Newspaper Today s Page One in Europe Today s Page One in Asia Publishing Partnerships Other Formats IHT Mobile RSS AudioNews PDA Smartphones Netvibes IHT Electronic Edition E Mail Alerts Twitter More Daily Article Index Top Hyper Sudoku IHT Developer Blog Subscriptions Sign Up Manage Contact Us Site Index Archives Terms of Use Contributor Policy Privacy Cookies Copyright the International Herald Tribune All rights reserved
Wed, 13 Feb 2008 21:33:47 +0000
Chester Higgins Jr. The New York Times Mainstream music industry realizes the value of free By Victoria Shannon Published January E Mail Article Listen to Article Printer Friendly Column Format Translate Share Article Text Size CANNES The mainstream music industry is coming to recognize a price for digital songs that might be good enough to compete with the underground exchange of tunes on the Internet free. It is a new and abrupt acceptance in a business that has been desperate for a defense against the steady erosion in overall sales of recorded music. Last year likely saw another percent decline to . billion globally a trade group estimates compared with billion in . The pressure is totally toward free Ted Cohen a music industry analyst and former EMI digital music executive said at the annual Midem music business conference here. Unlike their predecessors the new field of free digital services may even have Top tracks that consumers can download keep and sometimes copy. The catch For the most part it is being exposed to advertising. The latest Web site to join the ad supported free music bandwagon Qtrax had a coming out party Sunday complete with rap stars and invitation only concerts. Hyping itself as the world s first free and legal peer to peer music service Qtrax blanketed the start of the music market with posters free flash drives and snappy slogans. Multimedia Video Music industry gathers in Cannes View Related Articles An offer of free music downloads from major labels hits a roadblock Today in Technology Media As Nokia gets bigger rivals get hungrier Google The fox in the telecom henhouse Good Web design can mean good business Qtrax says it is opening its virtual doors Monday with all of the major record labels signed on adding that it has a selection of million tracks. But that total comes from an estimate of all the tracks available on LimeWire and other peer to peer networks not just commercial and licensed releases from the record companies and so may not represent actual customer choice. Industry observers had other questions about the Qtrax approach which despite five years of spade work was still missing a few details at its opening. But Qtrax says it offers a version of free that is better than the pirated music networks It will come without the computer viruses spyware and other technical obstacles that peer to peer music networks are known for and it will incorporate elements of social networks and fan sites. But free is relative. Its tracks will not be free of software restrictions that would limit their usefulness to consumers Qtrax would not detail the limits Sunday. Outside of the Apple ecosystem of digital music which ties purchased songs to its brand of player the choice for consumers seems to be coming down to music that is free of monetary cost but restricted or music for a set price that can be played on any device. A year ago many in the record business were dismissive and downright suspicious of letting their music loose on the Web in the plain vanilla MP format without being controlled by a set of digital locks and keys known as digital rights management or DRM. But in just the past seven months all four of the major recording companies have agreed to allow DRM free licensing of their catalogs of music. Earlier this month Amazon MP the online retailer s new music store signed up Sony BMG s unrestricted catalog with individual tracks for sale at cents each. Last week Last.fm the British music site owned by CBS announced that it would open up its service which streams music to personal computers like a radio station for free. At the same time Yahoo let word out that it was in talks about an advertising driven free service as well. Today s wave has been building for some time. The people behind Qtrax and We the British free download service backed by the musician Peter Gabriel for instance were talking up their approaches in Cannes a year ago. Others like Spiral Frog and Mashboxx have seen their moment in the sun come and go. Record label executives with billion dollar businesses that still rely on sales of CDs were careful not to be too enthusiastic about the free model. We are very committed to the CD said Jean Bernard L vy chief executive of Vivendi said at Midem on Saturday. Vivendi based in Paris owns the largest record label Universal Music Group whose digital portion of total music sales grew to percent last year mirroring the pace of the industry as a whole. Harvey Goldsmith managing director of Artiste Management Productions said he was not ready to write off the pay per download business. There s no such thing as a free lunch he warned at Midem. Analysts are keeping a wary eye on the free wave as well. Michael Altberg a credit analyst at Standard Poor s wrote in a report last week that despite obvious benefits we are uncertain whether the proliferation of DRM free la carte downloads will help boost overall digital sales anytime soon and we believe the absence of security software poses significant risks for further increases in piracy. Next Page Back to top Home Technology Media IHT.com Home Latest News Rebeca Argudo for The New York Times Where others see cruelty Dominicans see culture In the Dominican Republic cockfighting is celebrated as a symbol of the country s warrior spirit. In Opinion Roger Cohen Here comes Kosovo More Headlines In tribal Pakistan religious parties are foundering Michelle Obama takes to the trail EU executive calls for creation of a European border patrol East Timor s road ahead is clouded by uncertainty Video See all videos The mortgage fallout spreads American borrowers with good credit are now facing financial difficulties. The Week Ahead Feb. The IHT s managing editor Alison Smale discusses the week in world news. Kenya s professionals caught in the middle Kenya s vibrant middle class anxiously tries to stay in business. A bus of women s own Mexico City has been running a women s only bus service in response to complaints of groping. Movie Minutes Fool s Gold A.O. Scott reviews Fool s Gold starring Matthew McConaughey and Kate Hudson. Romney drops out John Harwood discusses whether or not Mitt Romney s withdrawal is good or bad news for John McCain. Super Tuesday The European reaction The IHT s managing editor discusses the results of the presidential nominating contests in U.S. states. Undecided voters in New York For these undecided democrats Tuesday was the deadline for making a decision and casting their ballots. The Week Ahead The IHT s managing editor Alison Smale discusses the week in world news. New York City s immigrant vote New immigrants to the United States share their opinions as they prepare to cast their ballots. Most E Mailed Hours Days Days . The other health care issue Getting costs down . Roger Cohen Here comes Kosovo . Rudd apologizes to Australia s Aborigines . Spielberg quits Olympics work to protest Chinese inaction . Totally spent . Clinton the woman . Obama and McCain sweep primaries . Malaysia s prime minister dissolves parliament . Georgian opposition leader dies in UK after complaining of plot to kill him . UBS names new investment chief . Studies conclude that biofuels are not so green . Shrinking ad revenue realigns U.S. newspaper industry . Spain gets women s measurements down . Study on diabetics blood sugar stuns doctors . Universities rush to set up outposts abroad . Sudanese refugees flood into Chad pushing the region deeper into chaos . How blackness has figured in the Obama campaign . EU plans to require biometrics of all non European visitors . In manga Bible the tough guy is Jesus . U.S. mortgage crisis spreads past subprime loans . Tests find hazardous levels of mercury in tuna sushi in New York . Studies conclude that biofuels are not so green . Personal Best Staying a step ahead of aging . Honoring Nazi victims as witnesses fade . Symptoms Metabolic syndrome is tied to diet soda . Shrinking ad revenue realigns U.S. newspaper industry . New NATO intelligence chief was trained by KGB . Spain gets women s measurements down . Study on diabetics blood sugar stuns doctors . Universities rush to set up outposts abroad iht.com biz Global insights from Business with Reuters More from Reuters top analysts James Saft Inside World Markets Paul Taylor Inside Europe Wei Gu Asia Economic Insight Alan Wheatley Inside Asia Search News Americas Europe Asia Pacific Africa Middle East Technology Media Health Science Sports Features Culture Style Design Travel At Home Abroad Special Reports Blogs Reader Discussions Weather Business Business with Reuters World Markets Currencies Commodities Portfolios Your Money Funds Insite Opinion Opinion Home Email the Editor Newspaper Masthead Classifieds Classifieds Home Properties Education Center Company Info About the IHT Advertise in the IHT IHT Events Press Office Newspaper Today s Page One in Europe Today s Page One in Asia Publishing Partnerships Other Formats IHT Mobile RSS AudioNews PDA Smartphones Netvibes IHT Electronic Edition E Mail Alerts Twitter More Daily Article Index Top Hyper Sudoku IHT Developer Blog Subscriptions Sign Up Manage Contact Us Site Index Archives Terms of Use Contributor Policy Privacy Cookies Copyright the International Herald Tribune All rights reserved
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