PlayLouder MSP, a UK firm that combines ISP services with unlimited, DRM-free
music sharing,
announced on Monday that SonyBMG Music has agreed to license selections from
its catalog for use on the service, thus joining music already licensed from
several independent labels.
PlayLouder MSP (the latter stands for Music Service Provider) has a unique
set of features, and the participation of one of the four major music companies
makes this a significant development in online music distribution. Essentially,
PlayLouder -- which calls itself a "Music ISP" -- combines basic broadband
internet service with a Wippit-style "walled garden" architecture, which makes
it possible for subscribers to the service to share files amongst themselves but
not with any non-subscribers -- at least not easily. To share a file with
a non-subscriber, a subscriber would have to burn a CD and send it to the other
user or log onto the Internet through a different ISP; both are "speed bumps"
that, apparently, SonyBMG feels are sufficient deterrents to large-scale piracy.
PlayLouder's monthly fee of GBP 27 (US $49) -- which is typical for broadband
service in the UK and comparable to US rates -- covers unlimited downloads and
sharing. Subscribers can use whatever software they like to share files,
including P2P applications such as Morpheus and eDonkey. Like Wippit, the
network uses acoustic fingerprinting technology (from Audible Magic, whereas
Wippit uses Gracenote's solution) to ensure that the only files being shared are
authorized ones and to track usage for purposes of royalty calculations.
This differs from the Snocap platform being used by Mashboxx, which can use
acoustic fingerprinting to detect sharing of copyrighted files and "interrupt"
by asking for payment.
Perhaps the most significant aspect of PlayLouder MSP is that it is the
real-world service that is closest to the collective licensing scheme that
the Electronic Frontier Foundation (EFF) and others tout as being the most sensible solution to
the online copyright wars: a flat monthly music licensing fee, built into the price of basic Internet service and shared among rights holders according to content usage. We do not believe that this type of solution is "the answer," any more than any single business model is the answer, and especially one that virtually destroys a large industry's ability to offer differential pricing for different offerings and markets. We believe that many
business models should flourish so that the market can decide the winners.
At the same time, we welcome the chance for the flat-fee licensing scheme to be tested in the
real world with popular content. This test will become even more realistic
if, as seems inevitable, other major labels join SonyBMG in licensing their
content to PlayLouder.