AOL Developing Instant Messenger Song-trading Offer

[BigBlueBall News]

Reuters

January 20, 2002

AOL Time Warner is developing a variety of subscription online music services, including an instant messenger-based song-swapping offering, to beef up its fledgling Internet music business, a company official said on Sunday.

Kevin Conroy, general manager of AOL Music, told Reuters the popular messaging tool, which is used by more than 100 million consumers worldwide to chat with friends and colleagues, could be turned into a money-maker for the sprawling media giant.

"Instant-messaging is a great communication tool and a great media marketing tool and it has great potential to be a media distribution tool that can be monetised," he said.

Many users of instant message services, AOL Instant Message (IM) and ICQ, already share with other users favourite Web links of songs, music news, concert information and tips on where online to buy certain tunes, Conroy said.

He envisaged IM being added to future, upgraded versions of MusicNet, the subscription digital music download service backed by AOL Time Warner�Œs Warner Music, Bertelsmann�Œs BMG and EMI Inc.. Conroy indicated he would also be interested in having rival Pressplay, a joint venture between Sony Music and Universal Music , use IM for its users.

Conroy was not specific about when such a venture would be rolled out. He added the company is developing the offering along with online fan clubs dedicated to select recording stars and an Internet radio service that fans can customise.

LOOKING FOR NEXT NAPSTER

An instant-messaging, or IM, song service would mark one of the most significant developments to hit the nascent online music market since Napster, the illicit track-trading site, was shut down last summer following a protracted legal battle with the majors.

"IM-ing is probably the most efficient viral marketing tool online in the U.S. today," said Jay Samit, vice president of new media for EMI, the third biggest music label. "Equipped with the right payment mechanism, it could make music truly an impulse buy on the Internet."

Such a service could make buying individual songs over the Internet as easy as chatting, some music executives believe.

Turning new technologies into viable revenue streams was the central theme of MidemNet, a gathering of executives from two struggling industries -- music and Internet -- being held in Cannes this weekend.

Much attention was paid to the progress of Pressplay and MusicNet, the labels "legit" answer to illicit song-swapping sites that have become overwhelmingly popular venues to download free music.

Conroy said he was encouraged by early consumer interest in MusicNet. He added that an upgraded version of MusicNet was being developed, possibly available later this year, that would "address the portability issue."

Consumers have criticised MusicNet for not permitting users to transfer songs to portable music players or allow for it to be copied, or "burnt," onto a compact disc.

Conroy stressed at MidemNet that digital downloads are only a portion of the music content fans would be willing to pay for online. AOL Music, which he said has more than 12 million monthly users, attracts money from corporate sponsors, labels looking to promote new acts and through sale of tickets and merchandise.

Digital download subscriptions, he added, would not have a noticeable impact on the labels�Œ bottom line "for a couple of years."

On Saturday, Forrester Research revealed the results of a recent survey of American Internet users showing that only the most ardent music fans are willing to pay for song downloads, but are willing to shell out no more than $9 per month, considerably lower than what the labels are charging with Pressplay and MusicNet.

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[gigibug333]

how do you im people songs...it wont let me just drag and drop..