UPDATE: Telstra dives into online music - News - Business

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This story was printed from ZDNet Australia.
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UPDATE: Telstra dives into online music

By James Pearce, ZDNet Australia
October 10, 2003
URL: http://www.zdnet.com.au/news/business/soa/UPDATE-Telstra-dives-into-online-music/0,139023166,120279518,00.htm

Warner Music Australia has signed an 'in-principle' deal with Telstra to provide content to the BigPond Internet music service, but the partners are staying cagey about the pricing arrangements.

Telstra, which has been in negotiations with music companies for several months, will launch the program -- allowing enthusiasts to buy tracks and albums from both major and independent record labels from BigPond music from early December -- to coincide with school holidays and the Christmas buying period.

Music industry sources said pricing was still being finalised, but was likely to be struck at a minimum of AU$2 per individual track and around AU$20 per album.

"Customers will be able to legally download music extremely economically and conveniently by charging tracks directly to their BigPond bill," said BigPond managing director, Justin Milne. "BigPond broadband customers will also be rewarded with significant discounts. In addition, music tracks downloaded or streamed will not count towards our ADSL and cable customers' monthly plan allowances."

The procedure of paying for the downloaded music via the monthly access bill will bypass many people's concerns over giving their credit card details on the Internet.

"The announcement has been welcomed by the music industry at a time when record labels and artists are looking for ways to prevent online music piracy," said Milne. The music industry in general has come under criticism for being unwilling to adapt to new technologies.

Domenic Carosa, chief executive of Destra Corporation which distributes music via mp3.com.au, has argued that the main reason for music piracy is that music is not generally available online, and is often overpriced when it is. He pointed out the best selling songs on mp3.com.au were the lowest-priced ones (at AU99c), irrespective of the artist.

For its part, the Australian Recording Industry Association claimed online music piracy was the cause of a decline in music sales last year, and have tried to combat piracy using litigation as the main weapon.