IBM took the wraps off a new technology that lets record companies distribute music while combating piracy. Five of the biggest record companies signed up to test the IBM products.
MP3 advocates doubt that there will be many takers.
IBM, which introduced its "Madison" project on Monday, said it will conduct the tests in San Diego. Starting this spring, about 1,000 consumers with cable modems will be able to choose purchases from up to 2,000 albums. With a PC, the testers will download the songs and burn the music onto recordable CDs playable on a regular stereo.
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IBM (IBM) said the technology won't let users illegally duplicate and distribute music. The project has the backing of BMG, EMI, Sony Music, Universal Music, and Warner Music.
"This trial represents the natural next step in using the Internet to strengthen ties between artists and their fans," said Rick Selvage, general manager of IBM's global media and entertainment industries. "From the artists' perspective, the system provides a new and highly effective means for connecting with existing fans while broadening the reach of their music and protecting their intellectual property rights."
Executives from the labels couldn't immediately be reached for comment.
IBM is joining an increasingly crowded field. Already, AT&T, Real Networks, Liquid Audio, and a dozen small companies are scrambling to establish their music-delivery systems as the standard for a business that could replace the brick-and-mortar record retailing industry.
But so far, MP3 -- a format that stores near CD-quality music in very small files that a PC can play -- has the lead. The format can be used to purchase music legally online, but the music industry contends that most MP3 files floating around on the Internet are illegally copied songs.
That's partly why the record companies are backing IBM. They need an influential technology partner to come up with a de facto standard for online music distribution.
"I have my serious doubts about Madison project," said Michael Robertson, founder of MP3.com, a Web site devoted to news, software, and music files in the MP3 format. With MP3, users would have greater flexibility.
"In an entirely controlled environment, you lose that," he said. "You damage the likelihood of consumers adopting it. The Net has made consumers change. The days of forcing consumers to adopt a format or system are over."
"The main benefit [of digital distribution] isn't that you don't have to go to a record store," said Steve Grady, vice president of marketing at GoodNoise (OTC: GDNO), an online record label that sells downloadable music in the MP3 format.
