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‘Oversight’ could cost music biz €336m

‘Oversight’ could cost music biz €336m

An unintentional oversight that allows consumers to 'shoplift' music samples from web portals and transfer them to their mobile phones for use as ringtones cost the European music industry €50 million last year.

An unintentional oversight that allows consumers to 'shoplift' music samples from web portals and transfer them to their mobile phones for use as ringtones cost the European music industry €50 million last year.

The figures are sure to unsettle music industry executives already nervous about digital media at a time when mobile music is attracting immense publicity.

Research from mobile software specialist Qpass based on both anecdotal chat room evidence and manual testing of 42 operator portals and 58 online music services found that two thirds of sites allowed punters to ‘right click’ and download 15-30 second track samples - more than enough to create a ringtone.

Qpass estimates that the loophole could cost the music industry €336m in lost revenue by end-2007.

Qpass says the problem is more one of perception than the financial fallout: “There is already an anxiety that has led music providers to take a conservative approach to new media, so these kind of issues are potentially harmful to the growth of mobile music,” said Steve Shivers, senior VP of corporate strategy and development at Qpass.

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