AAPT has launched a landmark deal with EMI music that will see home internet and phone bundled together with a music subscription that allows unlimited streaming from EMI’s online catalogue – The In Song – as well as $50 worth of music downloads a month. This kind of deal is a first for Australia.
AAPT Chief executive, Paul Broad, said the move was designed to “support the music industry’s plight and actively encourage our customers to consider artists’ royalties when they download music.”
So what’s in it for the ISPs? ISPs loose 1.4% of their customers a month, according to a Billboard report. Offering music subscriptions will bring down that percentage as it locks the music you get through that ISP to that ISP, which means changing from one Internet provider to another could translate to rebuilding your entire music collection. Hence that 1.4% may be more inclined to stick with their original ISP.
The AAPT deal with EMI is the first of it’s kind in Australia, and is cementing music subscription models as the new business model purpose built for combating illegal use of copyright. Will it work? Lets wait and see…