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Will BigPond MP3 music deal hurt iTunes Store?

Opinion and Analysis

The problem with online music stores in Australia has been that they force a tradeoff between full coverage of the major labels, or DRM schemes that prevent buyers listening to their purchases on whatever device they choose. Telstra's BigPond Music store has reached a deal with the big four labels allowing it to offer unprotected MP3s.

The deal brings Australia into line with the US, where online retailers such as Amazon offer a wide range of DRM-free music.  So far, that hasn't hurt Apple's position as the country's top music retailer, but what will happen in Australia?

First, the details of the Telstra announcement.

The service provides music from Sony BMG, Universal Music, Warner Music and EMI, plus local labels and distributors including MGM, Inertia, Liberation, IODA, and AmpHead. Additional independent labels are expected to sign with BigPond Music in the coming months.

Tracks are encoded at 256kbps or 320kbps, which is about as good as it gets. We'll leave the golden-eared brigade to debate in our forums the effect of various codecs on track size and audio quality.

BigPond Music hasn't announced fixed pricing as used by Apple, but a quick look at what's on offer suggests the usual prices are $1.69 for individual tracks, or $16.50 for complete albums. This matches the iTunes Store pricing for tracks and slightly undercuts it on albums.

However, if you're looking for the best price it might be worth checking both stores before purchasing. We noticed Elvis Presley's The King was $16.50 at BigPond Music (and only offered as WMA) but just $9.99 at the iTunes Store (FairPlay protected only).

What about new music? Please read on.



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