Sue Zeidler
LOS ANGELES: Pressplay, a Web music service owned by Sony Corp. and Vivendi
Universal on Thursday said it hopes to make its online service available to
Apple Computer Inc.'s Macintosh computers sometime this year.
"We are hoping that sometime this year that Pressplay will be available
(on Macs), although we can't guarantee," said Andy Schuon, chief executive
officer of Pressplay, during a conference call hosted by research firm Jupiter
Media Metrix.
Heads of other subscription services such as Pressplay's big label-backed
rival MusicNet and independently owned FullAudio and Listen.com also joined the
call.
The commercial services are launching in hopes of tapping the huge audience
demonstrated by song-swapping service Napster, which was closed in July 2001 by
an industry-wide copyright lawsuit claiming it was encouraging wholesale piracy.
While Apple has made a big splash this year in the digital music sector with
its iPod MP3 music player, none of the new online music subscription services
are yet available on Mac computers because they are not compatible with the
Macintosh's operating system.
Pressplay, for instance, runs on Microsoft Corp.'s Windows operating system.
Schuon and other online music executives are looking ahead to the day their
programs will also run on Macs, which Apple has been trying to position as a
digital hub for music, video and digital photography.
Pressplay also uses Microsoft's digital rights management (DRM) system and is
distributed through Microsoft's MSN, Yahoo Inc. and Roxio Inc. Web sites.
Industry experts said moving towards the Mac, which has a roughly five per cent
share of the personal computer market, was a logical step.
Mac 'consumer-friendly'
"The Apple is so consumer-friendly and it makes all the sense in the
world to have these services on the Mac," said Karen Allen, an Internet
consultant formerly with the Recording Association of America (RIAA). "If
Pressplay is being offered through MSN music, MSN music would also get more
subscribers if they were offered through the Mac so it would increase the
revenue stream."
Microsoft declined comment. A spokesman for Apple was not immediately
available. Online music executives see a challenge ahead in trying to convert
former Napster users, used to getting music for free, to pay for their services,
particularly as free Napster-clones have also sprung up.
In addition, the officials noted their services were challenging many of the
basic assumptions upon which the recording industry has been historically based.
"Since the recording industry's inception, musical sales have also been
based on the sale of physical goods. This means that we're playing with the
business model, so a significant portion of this business will be in
education," said Alan McGlade, president and CEO Of MusicNet, the service
backed by RealNetworks Inc., Bertelsmann AG, EMI Group Plc and AOL Time Warner
Inc..
Many executives on the call also said they believed there was a large
untapped market in an older audience who have more disposable income and may
have missed the Napster phenomenon. The biggest audience for Napster was
comprised of mostly college-aged or mid-20-year-olds who had less cash and more
time on their hands, they said.
"We think the older audience has huge potential. The over-25 demographic
has been undeserved in general. There's not a lack of business in that group,
but there's a lack of alternatives on the radio side and in retail," said
James Glicker, president of FullAudio.
Napster recently launched the test of its own secure subscription service to
compete in the market as well.
(C) Reuters Limited.