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The floodgates are officially open. Corporate giants Sony Music and Microsoft have announced that they will be working together to offer digital downloads of singles this summer.| While some indie labels (SpinART, for example) already offer singles -- as well as complete albums -- in digital form online, today's announcement marks the first time that a major label has weighed in with a concrete deadline (summer) for selling current singles on the Web on a regular basis.
"More and more music fans are anxious to access music from their
favorite artists via the internet," said Fred Ehrlich, senior VP of
new technology for Sony, in the statement. "This agreement will
provide a way for them to do just that."
Sony's vast roster, which counts Epic, Columbia and Ruffhouse among
its imprints, includes such artists as the lightning-hot superstar
Ricky Martin, Mariah Carey and hip-hop diva Lauryn Hill. It's
unclear which artists' music will be available, reportedly due to
label scheduling. However, an additional obstacle may lie in the
relationships between the musicians and the label themselves.
"It all depends on whether their contracts specify electronic
royalties," said a business manager who represents several acts on
Sony labels. "It depends how old the contract is. But if it's not
in the contract because the contract was signed before [digital
downloads] were even envisioned, then the record company's not
going to have the right to do it without negotiating to do it."
According to the manager, most major label contracts drawn up
within the last three years would include the new royalties
concerns. If no accommodation has been made for downloads,
negotiations could be expected to affect who and what gets offered.
Nonetheless, there's as much reason to be excited as concerned.
"If it's administered properly then we're not concerned at all,"
the manager says. "It's probably a good thing for our clients
because it's additional royalties for them."
In a press conference following the announcement, Ehrlich said the
singles, which would download in roughly five minutes at 28.8 modem
speeds, would be offered for the cost of traditional retail singles
(they range in price from $1.99 to $5.00).
As for the retailers, Ehrlich was quick to point out that the
Sony-Microsoft relationship was not meant to hurt brick and mortar
stores. "We are not looking to circumvent the retailers. So the
retailers [ie: Tower Online], if they choose, will have the ability
to be part of the offering." He promised further details on that
volatile subject in the next "month or so."
Both Microsoft and Sony are part of the Secure Digital Music
Initiative, which is a cross-industry effort to develop guidelines
for delivering songs and albums to fans while protecting copyright
interests that are vital to labels as well as artists. While
today's announcement seems to shortcut the SDMI project (guidelines
are due by the end of June, according to Ehrlich), both parties
noted that the technology will be in full compliance by the time it
launches.
"Right now we believe that the [beta] software we shipped in April
was largely compliant with SDMI," said Will Poole, senior director
of marketing for Microsoft's streaming media division. "We're
looking forward to making modifications and shipping product in
volume this summer."
JOE ROSENTHAL(May 12, 1999)