Limewire Jumps on the MP3 Bandwagon

Filed in archive Companies , Marketing , Retail on August 27, 2007

Limewire, the current leading P2P developer, is developing an online music store. Paid music files will be available via links in their P2P software and later included in P2P results. Music will be available in MP3 format. Independent labels iris Distribution and Nettwerk Music Group have already signed on.

It's an opportunity for consumers to do the right thing and pay for the music they've been downloading over P2P. On the other hand, it's like adding fuel to a fire. The same software that pays for the open MP3 file also shares it with thousands of others who likely will pay nothing.

For independents it's a way to make some revenues from a channel where they've made none. Bands and music distributors can join the program by contacting Limewire at storecontent@limewire.com.

The major recording labels though likely won't take such a charitable view. They are still in litigation with Limewire for abetting copyright infringement. From their perspective Limewire's online store, while a legal enterprise by itself, is only made possible through its position as a leading distributor of illegal software

Legitimate music distribution over P2P is not new, but the MP3 twist is. P2P distributors have long promoted both free and secured pay files in their software and across their network. Kazaa integrated Altnet songs directly into its P2P client years ago. Music distributor INTENT Mediaworks has distributed files through its own branded P2P software.