Universal Music Group has announced its deal with file-sharing site, Qtrax, to allow free, legal downloads of UMG music.

This is an about-face after the debacle in January when Qtrax announced it had the backing of major labels but UMG, Warner Music and EMI Group PLC all insisted there were no licensing deals in place. The AP reported that UMG spokesman Peter Lofrumento confirmed Tuesday that an agreement has been reached. He did not disclose further details of the deal nor made any indication on whether a contract has been signed.

"All of UMG’s music available digitally will be available for free, legal downloads on Qtrax," Qtrax spokeswoman Shamin Abas told The Associated Press.

According to a UMG-Qtrax statement, musicians will receive due compensation for use of their tunes on the site. Abas also said users "will be able to purchase music-related items" on the site.

This agreement with Qtrax might not be enough to keep the site viable-it launched in 2002 before disappearing, fearing legal problems. If other music companies follow suit, the perhaps the Qtrax ad-revenue based model might have some way of succeeding though it is risky.

It’s a surprising move for UMG since most recording companies are leery about giving away music, citing the fear that consumers might not want to pay money for digital music if allowed free access.

Related:

Entry was posted on Tuesday, May 6th, 2008 at 10:25 pm under Music.

Read more entries by Erna Mahyuni.
Stumble It!