James Delahunty
1 Sep 2005 13:34
It's now time to add two more big names to the list of firms offering music download services. This time it is two High Street music stores from the UK, HMV and Virgin. Their aim is to take a slice out of the ever-growing market for downloaded digital content. However, it must seem strange to both these companies when their biggest challenge is with software companies like Apple and Microsoft who just managed to get into the download business before them.
While now music downloads in the UK account for just 2% of all music sales (5% worldwide) the coming years, according to analysts, will show the rise of digital purchases above purchases of a physical product. These two latest services are going down the same road as Napster with a music subscription service. As long as customers keep the monthly fee coming, they have access to over one million tracks.
Music can be stored on compatible portable digital music players but will cease to work if the monthly fee disappears. The subscription fees will be £14.99 but Virgin is also offering a £9.99 a month package for people who will not be storing music on portable players. An additional fee is required to hold onto tracks permanently. This will be around 79p but HMV is offering to allow record labels to se cheaper prices for new artists to help promote them.
"I think in time the public will realise that there is a vast choice available to them," HMV spokesman Gennaro Castaldo said. "The iPod has been so successful because it is a fashion item as much as anything else, but fashions tend to change in time." HMV also hopes to educate more people on how to download music. Computers will be installed in 200 HMV stores worldwide where staff will show people how to download music.
This help is aimed at women and older people mostly, whereas it's not particularly set up for younger male consumers. "Record stores have generally been a bit of a male preserve," an HMV spokesman said. "When more women are comfortable with downloading they may find it less intimidating to do that on their own computers, rather than go into a record store." Virgin will launch its music download service tomorrow, and HMV next Monday.
Source:
BBC News