As I think I've suggested in the past - it may be the *retailers* not the
'majors' who ultimately suffer in the brave new world of 'soft' delivered
music, especially those which haven't diversified beyond cds/records.

As for 'specialists' - i.e. those shops we buy our sort of vinyl fr, in
their particular niche, there may be little change. All this of course is
mho - and a not v informed one.

k

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FRONT PAGE - COMPANIES & MARKETS: MTV considers move into music downloads
By Peter Thal Larsen and Tim Burt in London
Financial Times; Oct 10, 2003


MTV, the leading music television broadcaster, is considering a move into
the fast-expanding online music business by offering downloads of songs on
its websites.

Executives at MTV are studying the possibility of launching a legal music
download service that would compete with Apple, the computer group, and
smaller services such as Roxio.

Tom Freston, chairman and chief executive of MTV Networks, said the company
was studying the move "very carefully", although no final decision has been
taken.

MTV's move would mark a significant endorsement of online music at a time
when the world's largest entertainment companies are fighting increasingly
bitter battles against illegal file-sharing services. Although Apple has
seized the initiative with its iTunes music store, other large groups such
as Microsoft and Sony are scrambling to catch up.

MTV, whose channels are watched by 400m people worldwide, would be in a very
strong position to promote its service to its viewers. "Bands and labels
don't really have brand names in the way MTV does," Mr Freston said.

"MTV and VH1 could play some wholesome role as aggregators, linking to other
sites."

Record industry executives reacted positively to the possibility of MTV
entering the online music business. After initially trying to control the
development of downloading, record companies have concluded that a greater
number of online distribution channels should boost sales.

Apple reported last month that 10m songs had been downloaded from its music
service, currently only available to Apple Mac users in North America. But
Mr Freston said that while sales had taken off, he expected further growth
in the market.

"We're really on the cusp of the legitimate digital music revolution."

Mr Freston questioned the wisdom of recent moves by the Recording Industry
Association of America, the music business lobbying group, to sue persistent
music downloaders. However, he admitted he did not have a solution to the
problem.

"They're up against a culture of file-sharing that has evolved and engrained
itself in consumer behaviour. That's a formidable obstacle, so they're
almost damned if they do or damned if they don't."

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