Music companies are still looking for ways to cash in on digital music, says TheStreet.com.
Currently, their favourite marketing tool is a phony 'crime' created by their PR departments to allow them to try terrorize recalcitrant consumers into buying over-priced, lossy digital downloads from skimpy catalogues.
Now, "The firm behind the defunct Qtrax online file-swapping network has inked a licensing deal with Britain-based EMI Music Group PLC and aims to relaunch later this year as an ad-supported recording industry-friendly online music service," says the Associated Press.
The downloan rental application will, "work with and filter copyrighted content from existing peer-to-peer networks," says EMI.
As with similar rental 'services,' as soon as users stop paying, carefully compiled libraries will become useless.
"Qtrax was among several peer-to-peer file-sharing applications that emerged following the shutdown of Napster, the pioneer service that enabled millions to illegally copy songs stored in other music fans' computers," says AP. "Creator LTDnetwork Inc. stopped distributing Qtrax after a few months following its 2002 launch to avoid potential legal trouble."
The Street says EMI claims it's the first major music company to make its catalog available via what will be the "world's first advertising-supported, legal peer-to-peer music distribution service".
EMI is a member of the Big Four Organized Music cartel. It, and its fellows, Warner Music, Sony BMG and Vivendi Universal, charge between 60 and 85 cents wholesale for each compressed music track they sell to the handful of online corporate download stores which have been persuaded to carry them.
Under investigation in the US for alleged bribery and price fixing, the Big Four are behind US moves to eliminate MediaServices' AllofMP3.com, which prices its songs by size and offers downloads for cents instead of dollars, in competition to the likes of Apple's iTunes, which demand $1 and up for each file.
Financial terms of the deal weren't disclosed, "although EMI, which is the first of the music majors to sign up, will share in both the advertising and song sales revenue," says Reuters.
"There's a lot of pent-up demand for advertisers to get onto peer-to-peer services, but up until now it's been illegal, and highly dangerous territory for them to wade into," the story has Allan Klepfisz, ceo of LTDnetwork's parent company Brilliant Technologies, saying.
Klepfisz says although there have been conversations with advertisers, no one has signed up just yet, "adding that the priority has been to nail down the four major music companies," Reutes continues. "We have advertisers tentatively on board, but until you launch it's a bit of theoretical thing," Klepfisz said.
According to Reuters, "Qtrax's free version will allow consumers to download songs in the .mpq format and play them for five times while offering them a click-to-buy option. Other music companies may allow more or fewer uses, Klepfisz said."
Qtrax will, of course, be loaded to the gills with DRM.
It'll have a "free" advertising-supported tier, "designed to work with and filter copyrighted content from existing peer-to-peer networks," says EMI. "The second tier is a premium subscription service which will require a monthly fee. The two-tiered business model is intended to attract a broad base of consumers to try out the service, and then graduate those consumers to purchase music permanently or subscribe.
"In the ad-supported, free tier, users will be able to search the network for specific tracks, and those tracks registered with Qtrax will be made available for download in Qtrax’s proprietary “.mpq” file format. Users will then be able to play the downloaded .mpq file in full-fidelity sound quality for a pre-defined number of times. Each time a consumer plays a track, the Qtrax player will also offer fans click-to-buy purchase options, as well as the opportunity to upgrade to a premium subscription service for a flat monthly fee.
"The premium subscription service tier uses Microsoft’s Janus DRM technology, which allows consumers to pay a monthly fee for unlimited access to music in the Qtrax network. Subscribers will also have the ability to transfer content to Windows Media enabled portable devices for as long as the subscription stays active."
Also See: TheStreet.com - EMI's Digital Decision , June 6, 2006 Associated Press - Defunct file-sharing network to relaunch, June 4, 2006 EMI - EMI Music becomes the first major music company to make its catalog available to Qtrax, June 5, 2006 cents instead of dollars - AllofMP3.com under attack, May 27, 2006 Reuters - New ad-supported P2P music service signs up EMI, June 5, 2006
