Welcome | Sign In
CRMBuyer.com
Must Read

EMI Licenses Catalog to P2P Network Mashboxx

Print Version
E-Mail Article
Reprints
EMI Licenses Catalog to P2P Network Mashboxx

EMI is licensing its entire catalog to peer-to-peer network Mashboxx, one of the first P2P firms to be built from the ground up as a legitimate music delivery network. EMI believes Mashboxx can help it by exposing music fans to more of its songs and artists. The service will include the option of playing full length tracks up to five times for free before purchasing them.


In the latest twist to come to the rapidly changing music industry, major label EMI said it would license its entire catalog to peer-to-peer network Mashboxx.

The deal Increase Customer Sales with Email Marketing -- Free Trial from VerticalResponse is the latest boost for Mashboxx, one of the first P2P firms to be built from the ground up as a legitimate music delivery network. Mashboxx was founded by former Grokster CEO Wayne Rosso and has yet to go live.

Sleeping With the Enemy

The partnership is also the latest attempt by the music industry to harness the power of P2P networks, which have for years been the enemy of the industry enabling widespread sharing of unauthorized music downloads.

EMI said Mashboxx will enable users to preview and buy copyrighted music content from EMI artists from within existing P2P networks, letting fans use the technology they have embraced in underground settings for more legitimate purposes. EMI said it will make its entire U.S. catalog available at first, with its overseas collections rolling out as Mashboxx expands its reach over time.

"Legal peer-to-peer services which offer consumers a great user experience and which compensate creators appropriately are good for music fans, good for artists, and good for the digital music market as a whole," said EMI Music North America CEO David Munns. "When it rolls out, Mashboxx will be a no-obligation way for fans to really immerse themselves in discovering music."

Munns said EMI believes the approach can be a profitable one for the label as well as artists. "It has the potential to be a very good revenue stream for those who make their living from creating and investing in music," he added.

Blazing a Trail

The move comes less than two weeks after Kazaa, the Australia-based P2P service that was at one time the most popular such network, agreed to a US$100 million settlement with music labels that had alleged it enabled illegal file sharing.

That deal should enable Kazaa to hook up with labels in order to become a legitimate outlet for music distribution as well, though there are many who are skeptical about whether such a transformation can actually take place.

EMI believes Mashboxx can help it by exposing music fans to more of its songs and artists. The service will include the option of playing full length tracks up to five times for free before purchasing them.

That feature is key, EMI said, citing data from the NPD Digital Music Study that showed that 75 percent of P2P users cited the ability to sample previously unknown music as a strong motivator for using P2P.

The service will also feature direct downloads that enable users to burn CDs and copy songs onto portable music devices.

Big Turnaround

The transition from underground technology to legitimate music download platform will not be an easy one for P2P to make, JupiterResearch analyst David Card said.

"It won't be easy to turn a file sharing network into a viable business," he said. For starters, he noted that competition is "brutal," with numerous offerings in the marketplace and new ones springing up often.

Existing P2P networks bring their user bases to the table and Mashboxx hopes to tap into that asset by creating something of a legitimate gateway to EMI music that could -- theoretically, at least -- be accessed from other P2P locales.

Attempts to legitimize P2P also face an uphill battle because many users have come to expect that music will be theirs for the asking. "Converting free users to paid users will be tough," Card added.


Print Version E-Mail Article Reprints More by Keith Regan


More by Keith Regan

Yahoo Slaps Fresh Coat of Gloss on Microsoft Deal Defense
June 30, 2008
With its shareholders meeting set to take place in less than five weeks, Yahoo has put together a 32-page presentation, emphasizing why the investors should vote to keep the current board in place. The company also reiterated why it chose to partner with Google instead of letting Microsoft buy part of it.
French Court Stings eBay With $63M Judgment Over Knockoff Sales
June 30, 2008
eBay is planning to appeal a ruling by a French court that ordered it to pay $63 million to the luxury goods maker Louis Vuitton Moet Hennessey. The court also barred the online auctioneer from selling four brands of perfume on its Web sites accessible in France.
New Auto Loan Leads Marketplace Shifts Into Drive
June 30, 2008
Reply.com's move into the auto finance market is a logical one the company, as automotive advertising spending is moving online in increasingly greater amounts. The company is partnering with the Detroit Trading Company to create a massive repository of auto finance leads online.
Don't miss a story -- sign up for our FREE e-mail newsletters and view the latest headlines at a glance.
Tech News Flash [ View Sample ]
E-Commerce Minute [ View Sample ]
ECT News Network Weekly Newsletter [ View Sample ]
Shortcuts
ECT News Network Information
Reader Services
Corporate
ECT News Network