[rumori] pho: BK: MTV Gets Down With Downloads


From: Don Joyce (djATwebbnet.com)
Date: Wed Apr 04 2001 - 19:36:34 PDT


Forwarded by Negativland.

>"The idea that the music doesn't have value when it's taken off the disk is
>wrong; the art form is the music," said Ted Cohen, EMI's vice president of new
>media. "Whether it's a download, bought in a store, or burned, we see that the
>value is in the music.
>
>Right on, Ted!
>
>JP
>
>----------------------------------------------------------------
>http://www.wired.com/news/business/0,1367,42839,00.html
>
>MTV Gets Down With Downloads
>by Brad King
>12:20 p.m. Apr. 4, 2001 PDT
>
>
>Music television is about to expand to the Internet, as all five major labels
>announce a new retail service that will allow consumers to purchase digital
>downloads through MTV's online network.
>
>The downloads will initially be sold through the MTV Radio and VH1 At Work
>streaming stations, which use Rioport's Pulse One Media Services delivery
>system.
>
>When listeners hear a song they want to purchase, they can click on a buy
>button and immediately purchase a secure download.
>
>MTVi CEO Nicholas Butterworth said the service would eventually be fully
>integrated with MTV, giving viewers the ability to watch and interact with
>their favorite music.
>
>"Our expectation is that by the end of this year, about 50 percent of the
>music
>played on the music channels on television will be instantly available for
>download," Butterworth said. "We certainly expect it won't be long before
>seeing a video on TV is a promise that you can purchase a secure download."
>
>The service is currently offered only through MTVi. Rioport CEO Jim Long said
>other retailers would be added to the distribution system throughout the
>year.
>
>Wednesday's deal instantly catapults MTV into the retail market, just one day
>after traditional merchants like Tower Records accused the recording industry
>of squeezing them out of the download market.
>
>"MTV is now becoming a powerful retailer," said Webnoize analyst Ric Dube. "We
>know that retailers are only going to tolerate so much, and it's getting worse
>and worse. This is just another strike against the established retailers."
>
>Despite the clash that appears to be brewing between the record labels and the
>traditional retailers, MTV could offers consumers an integrated music service
>that few online or offline retailers can match. With the powerful brand name
>and popular television shows like its daily video countdown show TRL, the
>music
>television network might have found the perfect fit for an integrated music
>service.
>
>"If MTV is smart, this is going to evolve into the TRL music club," Dube said.
>"People will pay a subscription fee to get all the TRL music that they want,
>and kids can get all the access to (TRL host) Carson Daly that they want.
>
>"Then, they are going to plug song-specific MTV radio stations on their shows,
>and when you're listening to that song on their radio, if it's available for
>download, you can then purchase the song."
>
>Dube said creating such a service would still be difficult, as licensing
>issues
>would need to be worked out. But the brand the company is developing and the
>demographic it caters to would be perfect to make this type of
>subscription-based service work.
>
>The service will initially have 10,000 tracks available, with singles selling
>for $1.99 and albums selling for $18.98. Consumers will have a variety of
>rights in terms of how they get to transport the music, depending on which
>label the music comes from. While not discussing specific details, Long said
>consumers would be able to move their files between devices and retrieve
>copies
>of music that might have been inadvertently lost or deleted.
>
>Long did say that users wouldn't necessarily be able to burn CDs after
>purchasing music. Each label has its own policy for that.
>
>While the price seems high for music that is delivered digitally and comes
>with
>some restrictions on use, one record label executive said that maintaining a
>retail price structure was important in clearing licenses.
>
>"The idea that the music doesn't have value when it's taken off the disk is
>wrong; the art form is the music," said Ted Cohen, EMI's vice president of new
>media. "Whether it's a download, bought in a store, or burned, we see that the
>value is in the music.
>
>"It makes it more complex to go to an artist and tell them that they are going
>to get less money because they are selling the tracks digitally."
>
>Downloaded tracks will be available primarily wrapped in security from either
>InterTrust or Microsoft, the two leading developers of digital rights
>management technologies. However, Rioport's Long said the labels would each
>decide on their own what kinds of securities would be attached to the
>service.
>
>Long said the new service would thrive despite the existence of Napster
>because
>of the consumer experience.
>
>"When you have a business model like Napster, when you aren't making
>money, you
>can't really put any money into developing business models," Long said. "When
>you talk to folks involved in swapping, people are very dissatisfied with some
>of their transactions."
>
>On Tuesday, Realnetworks' MusicNet subscription service executives said they
>would work with the controversial file-trading company once security protocols
>were put in place -- an emerging trend from online music companies. Cohen
>followed suit, saying that while he doubted Napster would change, he hoped
>that
>MTV's service would be integrated with Napster.
>
>"Why would we want to freeze out anybody who has been stealing our music?"
>Cohen said. "I've tried to work with them on creating a business model
>before I
>came to EMI, and I finally had to stop working with them. But we want them to
>embrace our view of how to sell music."
>
>
>
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