Label:Life

The market for digital music downloads via the Internet and mobile phones nearly tripled in 2005, accounting for 6 percent of total record industry sales, a sign anti-piracy efforts are working and digital music is catching on.

The value of digital music downloads rose to $1.1 billion last year, up from $380 million in 2004, as music fans downloaded 420 million single digital tracks from the Internet, according to the International Federation of the Phonographic Industry (IFPI), in a report this week.

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A UK-based consumer rights group has called for MPs to introduce new laws to ensure consumers’ rights to use digital content are protected. The use of digital rights management technology on CDs, DVDs and music downloads to control or restrict the use of copyrighted digital works shows that the current regime of self-regulation is failing to protect consumers’ rights, according to the National Consumer Council (NCC).

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V CAST Music, the mobile music download service from Verizon that will put a million songs at the fingertips of Verizon customers, is officially on the air.

The service, which allows users to download songs to their mobile device for about $2, is launching simultaneously with a promotion that offers a handful of free songs from The Fugees, Shakira, Yellowcard and OMD for a limited time.

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The world’s first digital music download subscription will get mobile in Australia thanks to Hutchison’s Three network and destraMusic’s MP3.com.au division.

The announcement is a rare digital content first for Australian users. For a $3.00 per month subscription fee subscribers will get access to ‘all you can eat’ downloads.

The downside is that although the MP3.com.au music catalogue numbers in the 100,000 tracks, these are from independent artists rather than the higher profile songs in other catalogues.

MP3.com.au features 15,000 Australian and 10,000 international artists.

The downloads will be converted into the mobile music standard format mpg4.

“This is the first time in Australia that a mobile network is able to offer such a service,” said Domenic Carosa, destra’s CEO. “3 mobile is adding genuine value to its customer base by making available and simplifying unlimited downloads of high quality digital music to mobile handsets.”

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Although the legal digital music market in China is severely hampered by piracy, ongoing copyright crackdowns will allow the nation to become a major market for legal music downloading with estimated annual revenues of $222m by 2008.

According to In-Stat, promising signs in 2005 that the pirates are being made to walk the plank include the launch of several third-party online music stores.

The market watcher also noted that some unauthorised services, or those working in a grey area, are legitimising their services.

“The end of 2007 will be the turning point for China’s legitimate digital music market,”

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The film and music entrepreneur Patrick McKenna announced a deal yesterday to invest £300,000 in a new band, The Heights, as part of a venture capital trust.

The investment is the first from Mr McKenna’s Ingenious Music VCT, which raised just over £15m, making it the largest specialist fund of its type on the London Stock Exchange. Mr McKenna also unveiled plans to raise another £30m via a second trust, Ingenious Music 2, for similar investments.

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The Government’s continued support for the UK music industry will be underlined again when James Purnell MP, Minister for Creative Industries and Tourism visits Midem on Monday January 23.

In addition to the Government’s support for the ‘British Music at Midem’ village, which hosts the largest international delegation at the fair, UK Trade & Investment is supporting over 30 organisations attending Midem 2006 to exhibit on their own stands. Exhibitors come from all areas of the industry. (more…)

After the departure of top dog Alan Giles last week following disappointing financials, the High Street entertainment specialist has made three more changes at the top.

Product director Steve Gallant has left the company with immediate effect, having served in the role since moving to HMV in September 2002 from Universal Music. Simon Peck is appointed as his replacement, bringing with him experience gained over 15 years of service.

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Napster has denied claims that the digital music company is on the verge of a major shake-up that could see large numbers of employees lose their jobs. It also rejected allegations that Napster’s bosses are planning to sell the business – or shut it down.

The charges were made this weekend by sources said a report at website Digital Music News to be “close to the situation”.

But while one Napster insider said the claims sound like “idle New Year speculation… all the plans I know of for Napster in 2006 relate to new products and expansion”, industry sources told The Register they too have heard such allegations, in particular that the company is making job-cuts here in the UK.

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The Beach Boys are seeking millions of dollars in damages from two men they claim stole recordings and memorabilia from a warehouse in order to sell them.

The band claims Roy Sciacca and Allan Gaba violated the group’s copyright, trademark and “right of publicity” by trying to auction the goods in October.

They are seeking more than $20m (£11.3m) for the trademark claim alone in the Los Angeles court action.

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