Plea for ISPs to bundle in music downloads with broadband

A report released by the British Phonographic Industry (BPI) has suggested British internet service providers (ISPs) could make over £100m within the next four years if they choose to bundle in premium music services with their broadband packages.

The BPI’s report, conducted by analyst firm Ovum came to the conclusion the music market could be worth more than £103m by 2013 with the potential to grow to as much as £203m.

Summarising the report’s findings Adrian Drury, Ovum’s principal analyst, commented: "With the right service platform, user experience and merchandising strategy, internet service providers have an opportunity to reach a green-field digital music market that mainstream download-to-own services such as iTunes do not reach today."

In Drury’s opinion internet providers who also offer legal music services could have an edge of competitor suppliers: "The opportunity in revenue terms for the leading UK internet service providers is compelling, and in a crowded, increasingly mature broadband market, ISPs can differentiate their value-added offerings with innovative music services."

The BPI and UK internet service providers have had a rocky relationship in the past so it’s no surprise TalkTalk – a provider vocal in its response to the BPI’s previous anti-piracy suggestions -  had something to say: "As it happens TalkTalk does offer a legal download service (emusic), as do other internet service providers," said a TalkTalk spokesperson. "Perhaps there is a goldmine for legal downloads but that will not alter the fact the copyright protection proposals threaten human rights. They will penalise innocent broadband customers. They are expensive, unwieldy and utterly futile."

Both Virgin Media and Sky have also already announced plans for, or have a legal music download service in place.

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