Portal-power tipped to take lead in Euro music download services

According to research group Forrester, 2004 will be the year of legit online music in Europe. The most
popular music services, Apple's iTunes and Roxio's Napster, will
arrive in Europe later this year and thus other services from portals, such as MSN and Tiscali, can take advantage of the
window of opportunity:


Forrester's Senior Analyst Rebecca Jennings, said that portals
offering music services can benefit from 'strong brand names, high
audience penetration, significant marketing and cross-promotional
capabilities, and - in the case of ISPs - an established billing
relationship... But over time, Apple's ease of use, seamless linking with
the hot iPod, and enormous brand traction will see it overtake many of the
smaller services in Europe - as has happened in the US.'

Jennings also says that record labels
pursuing users of peer-to-peer networks will also pressure consumers to go
legit with their music downloads. 'Attempts to stop illicit downloading in
Europe have failed so far... But commercial sites just need to be patient
as the market gradually changes. In 2004, a combination of legal action by
the music industry and expansion of legitimate services will cause a
watershed in the download
market.'

Source: PC Pro

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