Record Labels Balk At Ad-Driven Downloads

Earlier this week, Baidu announced a partnership with EMI to bring streaming music to Chinese users by implementing an advertising supported free digital music network. There are other companies eager to take this sort of approach, but the major record labels are reluctant to embrace such practices. Of course, it's the same record companies that subscribe to the ridiculous idea that DRM is the answer to the rampant piracy epidemic. In response to this type of statement, label executives love to flash gaudy download figures from Laurence Frost has more: SpiralFrog and other embryonic ad-supported services promise a new approach to tackling piracy. Proponents see massive demand from peer-to-peer users who, they believe, would gladly put up with commercial messages in return for the peace of mind that legality brings. If you can't beat them, the theory goes, then at least make some money out of them. I wonder how much money and manpower that the major record labels flush down the drain by pursuing ridiculous lawsuits and developing useless anti-piracy technology. Perhaps if they had some vision, and stopped gouging their artists for every last nickel, music industry revenues might actually turn around. Add to Del.icio.us | Digg | Reddit | Furl Joe is a staff writer for latest ebusiness news