Andre Yoskowitz
15 Jun 2009 21:45
Virgin Media, the large cable TV operator and music store chain has announced an unlimited music download subscription service with Universal today, designed to allow all Virgin broadband users in the UK to stream or download as many Universal songs as they want, for a fee.
Of course, entertainment lawyers say the service will do nothing to stop global music piracy, which can amount to "millions in lost revenue" every year for the major labels. Many added that the 25 and under segment of the population will continue to pirate music, while this service may bring in user over the age of 30, who are less prone to unauthorized downloads.
Universal, the biggest major label in the world, includes such popular acts as U2, Elton John, the Rolling Stones, Duffy, Kanye West and Akon.
Virgin adds it remains in talks with other labels in an effort to bring more artists into the service.
The downloadable songs will be in DRM-free MP3 and will be available "later" this year.
IFPI Chairman John Kennedy adds of the deal: "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," Kennedy said of the new service.
"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 also added: "We expect the deal will drive a material reduction in the unauthorized distribution of its repertoire across Virgin Media's network."
There was no word on price.