Plans for legal P2P scrapped by Virgin

Demands were made recently by a number of record labels that non-subscribers and subscribers of its planned legal music download service were prevented from sharing music.

The decision made by Virgin Media, the UK ISP, to scrap its tentatively named “Virgin Music Unlimited” plan has been report to have come after major record labels made last minute demands that PCs that had not subscribed to this service were blocked from file-sharing the music.

The reason for setting up the service had been to monetize illegal file-sharing and Virgin Media felt that the blocking of file-sharing completely undermined its value.

Recent claims by the IFP that it loses 95 percent of downloaded music every year to illegal file-sharing would have meant that the new service by Virgin would help them monetize this loss of revenue. It would also have provided the music industry will the alternate stream of revenue it is looking for and help it to embrace the digital music age, which are both of great importance to the music industry. Unfortunately with the launch just a few weeks away and reports of an eight figure sum being spent on developing this project this will come as something of a blow to Virgin Media.

In a comment made to popular IT news site an executive pointed out that according to the voluntary Memorandum of Understanding (MoU) if ISPs don’t want to risk new legislation that will force them to combat illegal file-sharing they are required to cooperate in doing so with the British Phonographic Industry (BPI).

A recent proposal by the Isle of Man for a 1 euro per month broadband connection tax with legal P2P in return means that Virgin Media aren’t the only ones trying to help the music industry out. Ron Berry the Isle of Man’s e-business adviser said “Anybody can go on to the Internet and access anything. What we’re trying to do is legalize it and monetize it. Why would you bother to pirate anything if you could do it with the blessing of the rights holders?”