Universal MP3 trial branded 'half hearted'

NEWS However, analysts have branded Universal's trial, hopelessly flawed. The move is a landmark strategy shift for the record industry as it amounts to an admission that internet technology requires an entirely different business model. The record label is giving 5,000 users unlimited access to more than 20,000 songs on its database and it is expected to cost users around $15 a month for the service when it goes live. However, unlike Napster - the distribution service that has proved extremely popular to music fans - Universal's service doesn't allow subscribers to download material to their hard disks, which analysts believe reduces its attraction. Graham Fisher, analyst at Bloor Research, said: "Users are not getting anything out of this - they would pay for downloadable access or out of print records but this is like paying to listen to the radio." Peter Kumik, European managing director of digital copyright company SealedMedia agreed: "Universal has done this in a half hearted way - it can't launch something that doesn't add value to what is already out there - it has to provide video, back catalogue content or music lyrics." However, Kumik believes the move is a step in the right direction for the music industry as a whole. "It is implementing a business model they had previously never considered," he said. Eric Scheirer, analyst at Forrester agreed that the trial as it stands should be viewed with caution. "If a service rolls out with these features it will not succeed, however, once they have crossed the step to consider different business models, getting the service right will be the finer details," he said. Universal is reportedly in discussions with Sony for a jointly developed service and also with internet service provider AOL to act as a third party for music distribution.