Music giants end months of indecision on online trading

NEWS Major record labels in the US have given their support to a music distribution platform developed in secret by IBM. The decision by firms including EMI, Sony, Universal and Warner marks an end to month of indecision over how to handle Web sales. The record labels have all signed up to IBM's Madison project, according to a report in the Financial Times. They are expected to begin testing the software next year, with a view to using it as an ecommerce platform on their individual Web sites. Madison distributes music files securely over the Web, allaying fears of fraud. Until now established music labels have stuck to real-world distribution despite growing threats from online retailers such as CDNow and the trend for individual artists to distribute their work directly over the Net. The companies involved were unavailable to comment, but a spokesman for the Music Alliance, which represents performing artists in the UK, said: "This is another opportunity for members to receive royalty payments for their work, so we welcome it." It is believed that IBM invested $20m in the Madison project. Participating companies are likely to make a financial contribution to the project once trials begin next year.