The service -- which will allow customers to download music from the site for a fee -- is envisioned as an online music store that would compete directly with storefront music shops operated by retail heavyweights. Telstra hopes to have the system operational by Christmas.
Telstra spokesperson Kerrina Lawrence told ZDNet Australia the online music store would be associated with the bigpond.com/music/ channel -- part of a recent relaunch -- which also houses The Basement, a joint venture with the famous Sydney music venue of the same name that provides a streaming music service.
"We've been contacted by an American record executive recently, who was fascinated by the Basement model and interested in how we had struck the deal with the local music industry," said Lawrence.
Large record companies are desperately trying to find ways to encourage legal downloads of music, with recent ARIA statistics revealing more and more people are choosing to access music electronically. ARIA said the U.S. music industry had been trying for years to sell music legally, but the online music businesses run by the record companies hadn't taken off. They are looking to the success of Apple's iTunes service, which sells music far cheaper and with less restrictions than the music industry, for hints as to what they're doing wrong.
The Australian music industry has some hurdles to overcome, such as the fact that it's illegal to make personal copies of legally purchased CDs, or even transfer the music to another media, such as a personal MP3 player. One music pundit questions whether it's time for the music industry to move into the 21st century, and raises some questions concerning the legitimacy of the recent ARIA statistics.
