MTV considers offering music downloads
By Peter Thal Larsen in New York and Tim Burt in London
Published: October 9 2003 21:54 / Last Updated: October 9 2003 21:54
MTV, the leading music television broadcaster, is considering a move into the fast-expanding online music business by offering downloads of songs on its websites.
Executives at MTV are studying the possibility of launching a legal music download service that would compete with Apple, the computer group, and smaller services such as Roxio.
Tom Freston, chairman and chief executive of MTV Networks, said the company was studying the move "very carefully", although no final decision has been taken.
MTV's move would mark a significant endorsement of online music at a time when the world's largest entertainment companies are fighting increasingly bitter battles against illegal file-sharing services. Although Apple has seized the initiative with its iTunes music store, other large groups such as Microsoft and Sony are scrambling to catch up.
MTV, whose channels are watched by 400m people worldwide, would be in a very strong position to promote its service to its viewers.
"Bands and labels don't really have brand names in the way MTV does," Mr Freston said. "MTV and VH1 could play some wholesome role as aggregators, linking to other sites."
Record industry executives reacted positively to the possibility of MTV entering the online music business. After initially trying to control the development of downloading, record companies have concluded that a greater number of online distribution channels should boost sales.
Apple reported last month that 10m songs had been downloaded from its music service, currently only available to Apple Mac users in North America. But Mr Freston said that while sales had taken off, he expected further growth in the market.
"We're really on the cusp of the legitimate digital music revolution."
Mr Freston questioned the wisdom of recent moves by the Recording Industry Association of America, the music business lobbying group, to sue persistent music downloaders. However, he admitted he did not have a solution to the problem.
"They're up against a culture of file-sharing that has evolved and engrained itself in consumer behaviour. That's a formidable obstacle, so they're almost damned if they do or damned if they don't."
