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UK ISP’s New Music Service Will Pay Labels For ‘Illegal’ Downloads

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imageimageOne of the UK’s top ISPs is preparing to launch an unlimited music service that would see it pay record labels for songs illegally downloaded by its customers, can reveal.

Playlouder MSP (music service provider), which first tried the model for itself back in 2003, said it will facilitate the service for the broadband operator, starting early next year. Co-founder Paul Sanders would not name the ISP, but a source last month told paidContent:UK Virgin Media (NSDQ: VMED) was holding some kind of talks with the vendor.

Now that the biggest six ISPs have pledged to reduce illegal downloading on their networks, they need commercial alternatives that will prove similarly enticing – and subscriptions offering tunes-on-tap are emerging as the front runner for consumers already plucking free music from the “celestial jukebox”.

Playlouder’s service lets users legitimately download from channels like Gnutella, BitTorrent and more – the list goes on…

More detail at paidContent:UK

For more on the digital music industry, attend our EconMusic conference on Sep. 23 at the Natural History Museum in London. Early bird ticket sales are now open

5 Responses to “UK ISP’s New Music Service Will Pay Labels For ‘Illegal’ Downloads”

  1. That's true about using fake IP programs, but I don't know how effect those are, I know they work for browsing the internet, but I don't think they work specifically on P2P downloading programs.

    There has to be something that prevents (legislation) ISP's from sharing that information with a higher authority, I'm not saying that I'm for downloading illegally but I am for privacy, and that's a little frightening when you talk about putting people's privacy at risk.

  2. First off, they need to look at the business model invented for P2P to get a free financial engine in place with subscriptions.

    But second, holy big brother. How will this fall into the online privacy bill of rights? Don't get me wrong, I'm ALL for stopping illegal downloading but I can already see the next wave of thwarting the system with fake IP addresses, using public Wi-Fi, laptops that can't be traced or yadda yadda.

    The Critical Advertiser

  3. Robert Andrews

    Jeff, they've already committed to.
    Except, the ISPs aren't doing the monitoring. That's being done by the British Phonographic Industry (BPI), using P2P monitoring service. They pass on details of swapped files, IP addresses etc to the ISPs, who trace the IP to a customer and send out an informative letter, as part of an "education campaign". The ISPs have signed up to do this with the MPAA, too.

    Using deep packet inspection themselves would be a different strategy.

  4. There is no way to monitor and send warning letters to everyone who copies music illegally, they would need a separate group of hundreds of people working around the clock to mitigate illegal downloading. They're fighting a losing battle.

  5. digital bear

    Who funded these people? Seems like a silly way to help the music industry realize they are in a death spiral. What are the economics of this & how do they plan to mitigate an onslaught of illegal downloads?