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EMusic here to stay                                                                          August 2003

New service finally brings online music up to date

A new service could finally dispel the spectre of Napster and demonstrate a new maturity in music industry when it comes to distributing music online.

OD2 (On Demand Distribution), in conjunction with major service providers such as MSN and Tiscali, will make the back catalogues of a number of artists - many of whom are difficult to find using conventional, offline methods - available to users of Windows Media Player 9.

OD2 is not exactly a trailblazer - that accolade probably deserves to go to Apple, whose iTunes Music Store, launched in April, first indicated to record executives that there was a legitimate demand for electronically distributed music, something that was, until that moment, associated with illegal programs such as KaZaa. Apple sold more than a million downloads in its first quarter and claimed to nearly break even in its first quarter. The only problem was that the service was only open to Apple users.

Hence OD2, which takes advantages of changes made to the latest version of Microsoft's media player, including much more robust digital rights management software that prevents further copying or distribution of a track according to a supplier's restrictions.

Unlike the iTunes store, which charges 99 cents per track, OD2 makes use of a credit service, ranging from £1.49 for 150 credits (enough for 150 low-quality streams, 15 year-long downloads or one permanent track that can be copied), to a £9.99 subscription that buys 1600 credits.

Online music experts remark that this finally means record companies are beginning to see the Internet as an opportunity to do business - rather than a threat to their profit margins. Rather than simply seeking to protect their intellectual property, those same companies are looking to exploit the distributive potential of new technologies.

'We recognise it's in our interests to get as many of these offerings out there as possible,' said Jeanne Meyer, senior vice president at EMI US, reacting to news of the launch of OD2.

Previous stories

EU Copy Protection
No to Napster
Press Play for MusicNet

Relevant sites

OD2
Apple iTunes Store

 

© Jason Whittaker 2000-04



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