Virgin & Universal Join Forces, Launch Unlimited Music Downloads Service
The companies will make the tracks available as DRM-free MP3s
Yesterday the major cable TV provider and music store chain, Virgin Media, has made an announcement some had already predicted – together with Universal, the company will launch an unlimited music download subscription service. This service is thought out as a way to let all Virgin broadband customers in the UK to stream or download Universal tracks after their own hearts in exchange for a fee (which is yet to be revealed). Virgin added that it will further try to negotiate with other major labels similar deals.
While some have long advocated the need for such services, others (the music labels lawyers) choose to emphasize the lack of influence this kind of services will have on illegal file sharing which, they claim, is continuing to cause industry great damage in revenue.
IFPI Chairman John Kennedy commented: "It epitomizes the way in which the music business is adapting to the digital world, embracing new business models and responding to the changing needs of consumers."
"It also marks new ground in ISPs' willingness to take steps to protect copyrighted content on their networks, and that sets a very encouraging example to the whole industry."
Virgin pointed out: "We expect the deal will drive a material reduction in the unauthorized distribution of its repertoire across Virgin Media's network."
