Telstra Beats Big Players To Music Downloads


Telstra Beats Big Players To Music Downloads, by Garry Barker
16th January 2004


Telstra stepped into the online music business yesterday, launching Australia's first large-scale legal download site.

BigPond Music is the second player in what is expected to become an area of hot competition for the nearly $1 billion-a-year recorded music market.

The smaller Destra service was launched last month. Other companies, including Ninemsn and Apple, are expected to enter the fray soon.

BigPond customers will have automatic access to the music site, which offers more than 250,000 music tracks. They will pay $1.49 per track for most songs, and will be charged through their normal monthly bill. Other customers will be charged $1.89 per track, paying up-front by credit card.

Customers will have to use Microsoft's Windows Media Player version 9, a restriction that effectively shuts out users of the most popular digital music player, Apple's iPod, and also ignores music download software from Real Networks.

BigPond Music users will be able to burn tracks three times to CD and load them twice into portable digital music players, which must also be compatible with Windows Media Player rather than the MP3 format that is by far the most common.

The Telstra site will soon face fierce competition. Apple's iTunes Music Store, now only accessible to US users, is expected to be available in Australia in the next few months. Ninemsn, jointly owned by Microsoft and the Packer organisation, is due to launch its music site within weeks.

BigPond's managing director, Justin Milne, said the music library was expected to grow to 400,000 tracks within days.

Licence agreements were in place with TimeWarner, Sony, EMI and Festival Mushroom Records. The company was negotiating with other major groups and 60 independent labels.

Mr Milne said the development of reliable software to protect the copyright of the music companies had been critical in persuading record companies to join the legal online music business.

Links

Bigpond Music

Apple iPod

Destra

NineMSN

Articles

Telstra – future scenarios Analyses by Paul Budde: 22nd September 2003

Interviews

Derek Wilding, Communications Law Centre - 18th July 2003

Donald Robertson, Media Manager, Australian Broadcasting Authority - 4th September 2003

Lee Tien, Senior Staff Attorney, Electronic Frontier Foundation - 25th July 2003

Phil Tripp, Publisher of the AustralAsian Music Industry Directory & CEO of IMMEDIA! - 14th October 2003