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Hollywood film news on August
Vivendi backs free downloads to challenge iTunes
DPA
Los Angeles, Aug 30 (DPA) Vivendi Universal, the world's largest
music company, is putting its muscle behind free downloads of
music from the Internet.
According to an announcement the company has reached agreement
with New York-based startup Spiralfrog to make its music
catalogue available on a free legal download
service.
Under the agreement, Spiralfrog will offer Universal's songs
online in the US and Canada and make its money by carrying
adverts on the site.
The plan, which is to go live in December, is the latest bid to
challenge the popularity of the market-ruling Apple iTunes
store, which currently charges 99 cents a download.
The new service also hopes to entice users away from the illegal
free file sharing sites.
"Offering young consumers an easy-to-use alternative to pirated
music sites will be compelling," Spiralfrog Chief Executive
Robin Kent said Tuesday.
Kent, the former head of the Universal McCann advertising
agency, said that youngsters would be willing to endure
advertisements in exchange for free music as long as the brands
and products were relevant to them.
The move comes as data shows that the consumption of music is
fast shifting away from the CD format to the Internet.
According to the International Federation of Phonographic
Industries (IFPI,) 60 million MP3 players were sold in 2005,
while 420 million single tracks were downloaded,
which together with the sale of ringtones brought in some $1.1
dollars.
--DPA
Indo-Asian News Service.
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