EMI launches digital music distribution channel

LONDON - EMI will become the first major music company to make its catalogue available in an advertising-supported digital music service, due to launch later this year.

The service, called Q-Trax, has been developed by the New York-based LTDnetwork, and will allow users to download high-quality music files for free, which can be played a set number of times. It will operate in the US first but is expected to be rolled out globally eventually.

During each play, a "click-to-buy" offer will appear giving users the option to upgrade to a premium subscription service available for a monthly fee, allowing them unlimited access to the Q-Trax network.

The files will be downloadable as MPQ files, through the music company's own technology, but subscribers will have the option to transfer files to Windows Media format.

David Munns, EMI Music North America chairman and chief executive officer, said: "Of course, we think that any ad-supported model should be offered in a way that maintains, or even enhances the value of music, and we believe Q-Trax does that by offering a good consumer experience and significant up-selling opportunities.

"Our collaboration with Q-Trax will give us great consumer insight and help us gauge the boundaries between sampling and purchasing music."

EMI will share in internet advertising revenues, which according to the Interactive Advertising Bureau and PricewaterhouseCoopers reached a new record of $3.9bn (£2.1m) in the US for the first quarter of 2006, a 38% increase over the first quarter of 2005.

EMI, which represents artists including KT Tunstall, Pharrell Williams and The Magic Numbers, operates in 50 countries, but the service will begin with a pilot in the US later this year.

The Q-Trax service will also compensate artists for their work, which Munns hopes will protect the value and integrity of the music.

Q-Trax will also offer incentive programmes allowing fans to accrue points redeemable against additional plays, or for discounts on special purchases or subscription fees.

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