Fee-Based Music Services Planned

Users of file-sharing music programs saw the future of online MP3s last week, as companies announced a series of joint ventures between record labels and Internet companies to provide fee-based online music services.

Three major record labels announced Monday that they would team up with RealNetworks, the Internet audio and video distribution company that markets RealPlayer products, to develop a model for an Internet music subscription service.

Just a day later, entertainment company MTVi Group and music application service RioPort.com, Inc. said they would form a partnership. Through the deal, two websites run by MTVi group, Radio MTV.com and VH1atWork Radio, will be the first to offer music downloads from all five of the major record labels by the end of the month.

On these sites, singles will cost $1 to $2, while complete albums will go for approximately $12 to $19. The websites currently provide Internet radio.

Thursday marked the unveiling of a plan for yet another Internet subscription music service. Duets, a company formed last May by Sony Music and Universal Music for the purpose of distributing music online, will make its music available in the U.S. by the end of the summer-and in Europe by the end of the year-through Yahoo.com.

According to spokespeople at both Sony and Universal, the companies have not yet worked out details on the structure of the deal such as pricing plans.

Whether or not such new fee-based services will earn the following that Napster had at the height of its popularity remains to be seen. Among Harvard students, the reaction to last week's announcements is varied.

"I would never pay for it," Jonathan S. Young `04 said. "It's just not that important to me."

Damien C.W. Matthews `03, on the other hand, said he was glad that fee-based systems had arrived.

"I really felt bad about using Napster-for certain artists, I wouldn't use them," he said.

Matthews said that as long as artists and producers are compensated for downloaded songs, he would feel comfortable using the services.

Soon, students may not have the choice of using a free program. In the world of Internet music, the movement towards fee-based services has begun.

Even Napster has acquiesced to the fee-based business model, cultivating a deal earlier this year with BMG to create a fee-based service.

Some argue that the end of free music is a good thing not only for the recording industry, but for music-lovers as well.

"The demise of rampant file-sharing and not paying the right people will probably lead to a better service," said President and CEO of Rioport.com Jim Long. "It will be a much nicer future even though it won't be free."

-Staff writer Kate L. Rakoczy can be reached at rakoczy@fas.harvard.edu.