By Nora Macaluso E-Commerce Times
08/15/01 7:11 PM PT
MP3.com chairman Michael Robertson said users will 'gain access to a customizable Web
experience where they can build a custom home page of their favorite songs.'
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Online music provider MP3.com (Nasdaq: MPPP) said
Wednesday it has removed pop-up window advertising and other ads
from its music subscription service for which users pay monthly or annual fees.
MP3.com chairman and chief executive officer Michael Robertson said
that MP3.com users "have made it clear that they want to escape pop-up windows."
Robertson said he believes MP3.com is the first Web site to offer
users a choice between a site with advertising and a
subscription-based, ad-free version.
Subscriptions to "ad-free" MP3.com cost US$2.99 per month, or $29.99 per year, MP3.com
said. The company's Premium Listener Service, announced in June after the settlement of
multiple copyright infringement suits filed against the company,
costs the same amount and provides the same benefits, although now it comes without ads.
According to MP3.com, subscribers to MP3's Plus Express service, which carries
more than 1 million songs in addition to functions like CD burning, will now receive
ad-free service as well.
MP3.com also said the new service will allow subscribers to build
customized pages of favorite songs, concerts and the like.
French Connection
San Diego, California-based MP3.com has been a lightning rod for lawsuits from
record labels, which have charged that the service encouraged copyright infringement.
Court fights have led to MP3.com paying $150 million in settlements, as well as the
sale of the company to France-based conglomerate
Vivendi Universal (NYSE: V) in May for $372 million.
The sale came after MP3.com agreed to pay Vivendi's Universal Music Group $53.4 million
for copyright infringement. On May 2nd, Sony and Vivendi's Universal created Duet
(since renamed Pressplay) and announced that its subscription service would launch
shortly.
Fees, Not Free
More than one content provider -- and several once-free
Internet service providers -- have moved to subscription models.
For instance, Salon (Nasdaq: SALN)
has been experimenting with a similar ad-free format, offering a
version of its online magazine that carries additional articles and no
pop-up ads.
The content site, which also started charging for access
to its discussion forums, said almost 12,000 people have
so far opted to pay the $30-a-year subscription fee for the service.
Willing To Pay
A Jupiter Media Metrix survey released in July found that consumers are willing to pay for digital music services,
following the end of the free file-swapping service provided by Napster.
Guaranteed sound quality, virus-free music files and high-speed transfer
connection were cited as the top three incentives to subscribe to online
music services, according to Jupiter.
Jupiter also predicted the market for online music will reach $6.2 billion
by 2006, up from $1 billion this year.
Judge Declares Mistrial in MP3.com Case June 20, 2001
Jurors expressed 'great remorse over allowing the arithmetic error to occur after their
hard work,' a U.S. district judge said.
Duet and MusicNet Face European Probe June 11, 2001
The European Commission is reportedly in the early stages of its
investigations into Duet and Music Net, which are separately
backed by the top five music record labels in the world.
The Amazon Earnings Speculation Story January 21, 2002
For Amazon to break out of the box created by the competing objectives of boosting sales
and controlling costs, a pro-forma profit in the fourth quarter will be critical, a
Goldman Sachs analyst wrote.
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