ISPreview - UK Music - Illegal File Sharing Interview Part1
UK Music - Illegal File Sharing Interview Part1
By: Mark Jackson - January 22nd, 2009 : Page 3 -of- 3
"Potentially, there could be all variety of subscription services, although obviously they have to be commercially compelling to all concerned"

7. Isn’t it wrong to blame ISPs for allowing such activity when in reality their hands are tied by laws, technical limits and the fact that illegal downloading makes their services more expensive to run and not less? In reality many providers are concerned by P2P’s often disruptive influence upon their networks, causing once casual users to download vast quantities of data and challenge the very survival of their tight economic models.

UK Music:  I’d agree that ISPs see little benefit from illegal downloading either, especially now that broadband installation is reaching saturation point. This is a point Feargal has made consistently, both as CEO of British Music Rights and UK Music.

Given the expense and disruption of the status quo, this could be financial incentive for ISPs to move into the business of content distribution. 

8. Much has been said about the prospect of ISPs being able to launch online music subscription services alongside their broadband packages. Many different ideas have been suggested although precious little is known. Is this an active part of discussions with ISPs to help tackle piracy and if so then what options look to be the most favourable for all sides?

UK Music: This, ultimately, is the whole point of the MOU.  Potentially, there could be all variety of subscription services, although obviously they have to be commercially compelling to all concerned.  

9. Would such a music subscription service also be offered to smaller ISPs or are you only discussing it with the largest players, is it not prudent to consider smaller providers too?

UK Music: We are very sensitive to the needs of ISPs and there has been significant dialogue between us and ISP representatives.

10. Several online music stores have justifiably expressed concern that plans for ISPs to offer their own music subscription service could seriously damage market competition and might be an anti-competitive move. What are your thoughts on this?

UK Music: I understand those concerns, but that hasn’t been the case in Denmark (with TDC’s Play) or in France (with Orange’s Musique Max). In both these instances, ISP subscriptions have not resulted in significant displacement elsewhere.  

The UK’s digital music market has continually evolved and will do so in the future. The appearance of Amazon’s competitively-priced MP3 a la carte service before Christmas, in addition to Nokia’s Comes With Music, Datz, Spotify and We7, all point to a huge diversity of services, aimed at specific demographics.  

However, at the moment, you’re talking about a market where the vast majority of consumption is unlicensed, and that which is dominated by one company [Apple].

ISP subscription services could play a huge part in monetizing unlicensed consumption. These could be huge incremental revenues, in addition to what is already there.

End of part 1 – The second part of this interview will cover the technical and legal difficulties of correctly identifying illegal file sharers. This will be published in the first week of February 2009.

Related News and Articles of Interest:

11th March 2008: To Ban or Not to Ban (Illegal File Sharers)
http://www.ispreview.co.uk/articles/p2p08/

24th July 2008: Six Major UK ISPs Sign Key Anti-Piracy Deal
http://www.ispreview.co.uk/news/EkEyllVyFZTPzPqlzK.html

27th Oct 2008: UK Music Industry Preps United Approach to Illegal File Sharing
http://www.ispreview.co.uk/news/EkkVEEuAAyHyKvMxHR.html

16th Jan 2009: UK Government Fails to Reach Illegal File Sharing Consensus
http://www.ispreview.co.uk/news/EkFkpAAuFFXDQHcQtm.html

16th Jan 2009: IFPI Warns That Nearly All Downloaded Music is Illegal
http://www.ispreview.co.uk/news/EkFkEEFEkZRApzPdQi.html

18th Jan 2009: Music Industry Voices Concerns about Illegal File Sharing Legislation
http://www.ispreview.co.uk/news/EkFkkZFuklNpOUjdOY.html

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