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NET MUSIC
As anyone with a passing familiarity with the internet will agree, those who underestimate its potential to change the way we produce and consume culture do so at their peril. And digital distribution of music via the internet in which you pay money to download and then play an audio file (to put it at its most simple) is a revolution waiting to happen.
The trouble with revolutions, whether theyre technical, cultural, or social,
is that you cant be sure quite what will emerge at the end of the process.
What you can be certain of is that all manner of relationships between the consumers
and producers of music will change and also that the best way to influence
the outcome is to get involved as early as possible. Which is why its
good news for artists and other rights holders that MCPS and PRS have just launched
a three-month pilot scheme, MusicTrial.com, to test the waters of digital distribution.
But more of that later.
The potential of digital distribution has seized the imagination of some big
players in the music industry. George Michael recently commented: I cant
help but believe that music will become one of the first things that the public
will buy online simply because there are very few products that can be transported
down a telephone line. Its that simple. So if the shopping revolution
that we have heard about actually happens, music retail stores will probably
be one of its first victims. As a result, the website of his Aegean label
(www.aegean.net) is one of the few sites that has offered paid-for downloads
of copyright material, enabled by software from Liquid Audio (www.liquidaudio.com).
On the other hand, still more big players, notably major labels and retailers,
are wary of something that they perceive as a threat to their positions. But
a realisation is growing that denial is not the answer, and that active support
of suitable technologies is the way to go. Several companies are now offering
technical solutions for online music delivery, and they are finding it easier
to interest record companies and rights agencies in their products. Unfortunately
it is piracy, in the form of the proliferation of MP3 (MPEG Layer-3 encoded)
audio files, that has been as big a factor as any in prompting this interest.
Its the fire under the record companies asses, notes
John Stone, Liquid Audios Business Development Manager.
Digital distribution
At its simplest, digital distribution means the downloading, via the internet,
of some form of digital audio file to your desktop computer in order that you
can play it, or perhaps transfer it to another medium such as CD-R. In order
for digital distribution to be any kind of rival to other forms of music delivery
(CD, cassette, broadcast radio), it must meet several criteria. The quality
of the audio must be high very close to CD-quality but download
times should not be unduly long. There should be a simple means of paying for
the music that you download, and the rights of those who have an interest in
the music must be protected. All of these areas are problematic, but the advantages
of digital distribution are such that they will be solved. Its just a
question of when and by whom.
Few observers expect things to move particularly fast, however. US-based media
researchers Jupiter Communications have predicted that while online sales of
music in the US (including both online CD sales and digital distribution) will
grow to a $1.6 billion industry by 2002, digital distribution will account for
only $30m, or 2.2% of the total. The UKs internet development is reckoned
to be 18 months to two years behind the US, so it may be a few years before
we see the business grow to a significant size over here.
Ironically, one of the pioneers in the field has been the UKs own Cerberus
Central Limited, which went online in August 1995. Having realised from the
start that dealing properly with copyright would be essential to the success
of any digital distribution system, Cerberus (and their founder Ricky Adar)
came up with the right software tools, and sought agreements with the PRS and
MCPS, the bodies concerned with collecting royalties in the UK.
The system works as follows: the first time you want to buy a song, you visit
the Cerberus website, and having selected a title, you send the Cerberus Digital
Jukebox your credit card details via Cercure ATM, Cerberus own credit
card transaction software. The Jukebox then creates a unique Cerberus Audio
Player for you. Every time you want a a song, you send details of your Player
to the Jukebox, and the Jukebox then allows you to download a song which has
been encoded for your Player. If anyone obtains a Cerberus Player and illegally
publishes .CBR Audio files (the proprietary Cerberus audio file format) on the
internet, they can be traced from personal details embedded in their Player.
The Player also contains banking details, so that if you give away your Player,
you are giving people access to your bank account. A good way to discourage
piracy
There are several other systems in existence now from AudioSoft and A2B,
to the aforementioned Liquid Audio but the elements remain essentially
the same. A software player that runs on your computer accepts only a proprietary
audio file format. When you download a song as a file, the server accepts payment
in some form, logs the sale, and offers some means of ensuring that anyone who
has in interest in the recording (the composer, the performer, and so on) receives
correct payment. The audio file format supports both compression, in order to
reduce file size and download time, and encryption, such that only a single
player is allowed to play the downloaded file.
The right stuff
One of the interesting things about digital distribution is that it makes it
very obvious what we pay for when we buy music. When you buy a CD, you may think
youre paying for the disc, the case, and the booklet but what you
are actually paying for is the right to play the music that the CD contains.
The disc is merely a carrier. When music is distributed via the internet, theres
no carrier, and the different nature of the distribution raises questions for
the rights agencies.
There may be many different ways to pay for music, says Gavin Robertson,
New Media R&D Manager at MCPS and PRS. The bottom line is that people
buy CDs, a physical product, in the way that they do because its the only
way they can buy music, and the purchasing structure has evolved around that
technology. Its very naive of the industry to assume that the purchasing
structure will be the same when the technology is fundamentally different.
When you buy a CD, you buy the right to listen to it until the end of time.
But with a downloaded file? Other types of uses are possible. Why not
pay for a limited number of plays only, or the right to listen to a track for
only the next 6 months? If the copyright holders and collection agencies are
prepared to offer these types of uses of music, this is what we may be offered
in the future.
Reality check
But getting back to the present, whats on offer today? If you have a computer,
a modem. and access to the internet, youll find that you can download
a good many songs for free. Record companies are finding that the internet is
a great way to promote their artists, and Liquid Audio or A2B Music technology
is allowing many American labels to put clips and whole tracks up on their websites.
On the other hand, there are plenty of copyright-busting MP3 files around, mainly
on US-based academic servers, it seems. Whilst the consumer market in
digital distribution is very small right now, where digital distribution is
happening its probably mostly university-based, and mostly illegal,
agrees Mark Mooradian of Jupiter Communications. This is presumably why so many
providers of free web space, such as GeoCities, refuse to allow MP3 files in
customer web space which is a bummer if youre a musician who wants
to showcase your own copyright material.
The players
Of the four companies currently leading the way in producing the tools for secure
and rights-friendly music delivery via the internet, two are American (Liquid
Audio and A2B Music) and two are European (Cerberus and AudioSoft). Only Liquid
Audio currently offers both Mac and Windows player software; the other three
are Windows-only.
AudioSoft, based in France, offers both broad-band (i.e. cable and satellite)
and internet-based distribution of audio through third parties. Cable companies
in France, Germany, Switzerland and several other European countries supply
their City Music service, which allows customers with a PC and a cable modem
to browse and download titles from over 70 record labels few that youd
recognise, however. But major labels did climb on board for an interactive TV
trial that AudioSoft ran towards the end of 1997. A study of the use of the
system showed that while most customers looked for big-name artists at first
WEA, Sony and Polygram were among the companies to get involved
90% of them discovered and bought music as a result of access to online purchasing.
AudioSofts player software is based on MP3 encoding, and among planned
updates are the addition of support for CD burning, so users can burn their
own CDs after downloading songs. The system allows, along with other information
such as lyrics and copyright information, encoding of the number of copies of
a song that may be made though as with all such copy-inhibit mechanisms,
they only work until the user steps outside of the digital signal chain.
AudioSoft also offers City Music (www.citymusic.com) via the internet, though
it is concentrating more on broadband channels to consumers, where long download
times are not an issue they are also, significantly, channels that are
essentially local, and therefore easier to deal with in terms of national rights
agencies.
A2B Music, a subsidiary of AT&T, has developed technology that major labels
are using to promote artists such as Bonnie Raitt, Alabama and Tori Amos
indeed, Atlantic Records were keen to use the internet to promote Toris
last album, making a bonus track available as a download only to fans who pre-ordered
the CD via the web. A recent visit to the A2B site (www.a2bmusic.com) revealed
another twist on mixed media marketing a special CD-ROM available only
with a limited edition of Bonnie Raitts latest CD, the CD-ROM containing
bonus tracks that can only be played with the A2B Music system.
A2Bs approach seems to be to get involved with the labels, and wait for
the time when the commercial side of music distribution takes off. Although
you wont notice it if you download one of the free tracks on, or linked
to, A2Bs site, the A2B system includes a proprietary PolicyMaker element
that can control the use of the music in accordance with whatever licensing
terms may apply one-time play, song rental or purchase are all possible.
The AT&T compression algorithms allow up to 20:1 compression without perceptual
loss of quality, allowing a 5-minute song to be downloaded over a 28.8k modem
in 16 minutes.
Which brings us to California-based Liquid Audio (www.liquidaudio.com), formed
in 1996 mainly by ex-music and audio industry professionals, and the partner
in the aforementioned MusicTrial.com scheme launched by MCPS and PRS at the
start of September.
Their player software supports streaming preview audio as well as download
of CD-quality tracks (Dolbys AC3 compression technology is employed),
and with the other elements of the Liquid system, provides full rights reporting.
Launching the scheme, Mark Isherwood, Director of New Technology at the MCPS-PRS
Alliance, commented: Until now, rights organisations dealings with
the new technologies have been focused on preventing the use of unlicensed music
without addressing the need to find a user-friendly licensing solution for those
wishing to operate legally. This trial is our attempt to do just that, and by
working with Liquid Audio whose views on copyright protection remain
consistent with our own we will be producing valuable information which
will enable us to continue developing an online licensing system. We are demonstrating
how music copyright holders can continue to receive royalty payments for their
work in an electronic trading environment, thus allowing them to take full advantage
of the new opportunities of the Digital Age.
Until the end of November, anyone, anywhere in the world can download tracks
made available by MCPS and PRS members its not a huge selection,
but does include offerings from Cornershop and the Cocteau Twins, and a few
tracks from Ninja Tunes (ex-Coldcut Jonathan More and Matt Blacks label),
and Gary Numan, amongst others. For this trial, the downloads are free, and
this is how the system works:
As with the Cerberus system, you first need to download the proprietary Liquid
Player software (Mac or Windows). But before you download any tracks, you first
have to register your player with the Liquid Operations Centre via the
web, of course. Once the player is registered, it can receive and decrypt Liquid
Audio files, and your player is uniquely identified and identifiable.
Each time you download a track (and, in a commercial operation, pay for it),
you are issued with a Music Passport, a digital key that unlocks the encrypted
audio file and allows it to be played by the Liquid player, and also allows
the player to burn a track to CD.
Pinocchios nose Everyone agrees that the market for downloaded music is,
at the moment, tiny. The question is: when will it grow? Well, in the first
place, we need to take a good few steps beyond 28.8k modems before download
times become really tolerable especially when we have to pay for local
phone calls, unlike our Stateside counterparts. But that will happen. Record
companies and collection societies need to get on board that is happening.
In order for all the buying to actually happen, we will need to get a lot more
comfortable with spending money on the internet. While many people will quite
happily send their credit card details via the web its not really
any riskier than giving it to a strange waiter, after all many more will
not. Especially if small-value transactions are required, as will be the case
if people are downloading single tracks rather than albums, it may take the
widespread acceptance of e-cash to enable digital distribution to take off.
There is yet another factor, however: most of us spend enough time sitting in
front of our computers without having to sit at them to listen to music as well,
so we need some means of taking the music away from our computers. John Stone,
Liquid Audios Manager of Business Development, agrees that the computer
is a poor entertainment centre, but suggests that when the standard PC comes
with an internal CD-R or DVD-RAM drive, this will be less of an issue
youll simply download a song and burn it to CD. Were also
talking to multiple manufacturers of handheld devices whether theyre
flash memory, MiniDisc, DAT or whatever, isnt really important,
he says. What is important is that people like to have and hold something,
and we will be announcing partnerships with manufacturers of portable players
in the next few months.
David Johnson, Commercial Director of Virgin Net, who are also supporting MusicTrial,
sees the revolution coming sooner rather than later, though he sees no danger
to high street music retailers. I dont think were going to
see them close down. I think people will still want to go and look around, go
to a store and have the physical experience, though they may buy stuff online.
At the same time, I do think well see a many-fold expansion of online
sales in the next year or two. We havent seen electronic commerce take
off in the way people were expecting, but people are still expecting it to happen.
Music CDs are one of the things that sell well over the internet
already, so the infrastructure is already there.
On-line distribution of music product is happening already. The fact is
that a lot of musicians and rights societies are trying to stop it because they
dont have control over it and the payments, but I believe these issues
will be resolved and that they have to be resolved, because its
happening already in an unauthorised manner, and it will continue to happen.
So everyone has to get their act together. Thats why were working
with the Music Alliance on this.
But sounding a more pessimistic note is Ricky Adar, founder of the pioneering
Cerberus. At the moment we are not having many songs purchased through
our website, he admits, and as a result the company have recently concentrated
on developing Virtual Record Store Kiosks kiosks that let you burn your
own compilation CDs for installation in Levi Strauss stores across Europe.
Thats growing, and starting to make money. But the advantages
of digital distribution will make it a reality what kind of a reality
remains to be seen. As Gavin Robertson of the Music Alliance puts it: I
really dont know what itll be like in five or ten years time,
and anyone who says they do is kidding themselves. The one thing that is clear
is that the current ways of receiving music within a premises as background
music, from a broadcast, or from physical media are going to be immensely
expanded through all kinds of technologies. Perhaps through agent technologies
that make decisions on your behalf in the future, software could recommend
music, or just choose stuff for you, on the basis of what you choose to listen
to from your current selection. Is that replacing a jukebox, or a radio station?
If we download single tracks rather than whole albums, perhaps recording contracts
will change to reflect this. The record company of the future might be all about
marketing and A&R which is all thats left after you take away
production and distribution. More, smaller record companies? More music? More
power to the creators? Or more power to those who are already empowered? Well
be finding out in a few years time.
That's how the guns are doing it. In the second part we'll look at how you can
use the net to take your own music to the world....Coming soon!