Online music stores, new niche of the industry

07 September 2005

With the local iTunes store, music lovers will be able to legally get the records they want.

Gavin Parry, GM of digital services for Sony BMG said that digital downloads has now sold more often than Australia’s CD singles.

This week, there were already a total of 2 million downloaded music tracks recorded. Most of the music video clips are sent to mobile phones and not stored as internet files, said Parry.

"The internet has been quite slow, and we have had a fair bit of competition from the peer-to-peer services", he said.

On Monday, the Federal Court stated in its ruling the liability for the copyright infringement of the user in the file-sharing service. It said that filters need to be installed to halt any pirated music deal.

Chairman Denis Handlin of the Australian Record Industry Association lauded the court’s ruling as necessary in the making of a "viable legitimate online business."

Meanwhile, Parry said that Sony BMG and Apple are still in the process of negotiations. "We are looking forward to them launching because they do have a big impact in the market", he said.

Apple Australia have not yet revealed the date when it will launch its iTunes music store.

Stephen Peach believes that iTunes will be a catalyst for selling music online. He also acknowledged 3G mobile phone services that have provided a new way of distributing music clips.

According to Pew Internet Life Project, 43% already make use of legal online music services.

Matthew Rimmer, a copyright law expert said that the court decision was "fact specific" and is not a legal precedent for other technologies used by consumers.