Net music giveaway returns
Major labels launch promotional effort in Europe
CANNES, France, Jan. 20 — Major music and technology companies announced on Monday they will bring back a promotion they tried six months ago involving the give-away of free music to attract customers to their nascent Internet music businesses.
The music industry-backed services, many less than one year old, have had little impact swaying Internet users to abandon free download sites such as Kazaa and Grokster.
IN AN EFFORT to curtail the global outbreak of online piracy, a phenomenon that is chipping into CD sales, the major music labels have launched their own subscription services in the United States and partnered with third parties in America and Europe, including the UK’s OD2.
But the industry-backed services, many less than one year old, have had little impact swaying Internet users to abandon free download sites such as Kazaa and Grokster.
Despite pending lawsuits, the free sites continue to operate, serving tens of millions of music fans who trade millions of tracks daily.
“That’s the purpose of this event — to raise awareness that there are legitimate services out there,” Charles Grimsdale, chief executive of OD2, told Reuters on Monday in the seaside resort town that is hosting the annual Midem music conference.
The music industry trade body, the International Federation of the Phonographic Industry (IFPI), joined OD2 for the news conference as did representatives from Universal Music, underlining the industry’s fresh resolve to develop stronger alternatives to free file-sharing sites.
On Sunday, IFPI CEO Jay Berman challenged the music labels to do more to fight Internet piracy and CD-burning, saying it is costing the industry untold billions in sales and potentially jobs.
DIGITAL DOWNLOAD DAY, TAKE TWO
The industry’s first answer is to bring back a promotion that generated tremendous publicity in the UK last fall called “Digital Download Day,” this time extending it beyond Britain to other Western European countries.
The latest initiative is dubbed Digital Download Day Europe. Beginning on Monay, consumers in France, Germany, Spain, Italy, Britain and the Netherlands can register on www.digitaldownloadday.com for a five-euro ($5.33) credit enabling them to download or listen to up to three albums worth of free tracks.
Not surprisingly, the offer of free music triggered a bigger response than expected during the October promotion, preventing some visitors from getting on the site as OD2’s servers buckled under the traffic.
This time, the company will take registrations for a two-month period. Beginning March 21, registrants can then enter the site of one of OD2’s dozen partners and sample or download songs.
“We’re hoping to control the tap this time,” said Edward Averdieck, OD2’s sales and marketing director.
Co-founded by recording artist Peter Gabriel, OD2 provides the technology for a variety of Internet service providers, retailers and Web outfits including Italy’s Tiscali, Britain’s HMV, France’s FNAC, and Microsoft Corp’s Web portal MSN, to operate a music download business.
OD2 has secured licences from four of the five major labels, including Warner Music, Sony Music, Universal Music, and BMG, offering a record library of 150,000 songs from Eminem to Coldplay.
