Is PlayLouder about to revolutionize the British music market? A recent article in paidContent suggests just that, though executives raised serious questions about claims being made in the report on Tuesday.
The report (available at paidcontent.co.uk) opened by pointing to a deal with "one of the UK's top ISPs," a partnership that would construct an "unlimited music service that would pay record labels for songs illegally downloaded by its customers," a compensation plan that appears financially difficult at best.
That sounds a bit outlandish, though PlayLouder is actually planning a service that would allow file-sharing within a closed, ISP-controlled sandbox. Those transactions would be monitored, while royalties are distributed accordingly.
But the freedoms normally associated with P2P-based music acquisition and sharing would be seriously limited, at least outside the walls of the ISP. "They might be close to inking an opt-in music subscription deal with a UK ISP," one source close to the situation described, drawing loose parallels to stateside partnerships created between Rhapsody and ISPs like Comcast.
PlayLouder initially entered the market as a music-focused, broadband ISP (or MSP), one that offered music downloads within a contained account. Within the confines of that environment, users were allowed to download and playback songs of their choice, even from illegal P2P services. But the files - substituted copies of the actual, requested downloads - could not be swapped with those outside of the MSP.
The MSP model failed to grow legs, leading the team towards a broader ISP negotiation. And translated into an ISP partnership like Virgin (suggested by paidContent), the service represents a step down from current, free acquisition options. Currently, users can download MP3s from a variety of outlets, including LimeWire, and subsequently share and access those files without restrictions.
Also clouding the issue is a lack of major label licensing. Despite five years in the marketplace, PlayLouder currently has licensing deals with just two major labels - EMI and Sony Music - according to the company. The remaining deals could require considerable time and money to complete, according to typical major label licensing processes.

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