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Will BigPond MP3 music deal hurt iTunes Store?

Opinion and Analysis

For those with more contemporary tastes, Sneaky Sound System's Kansas City EP is $6.76 at both stores, but once again the iTunes version appears to be DRMed.

BigPond Internet customers get a 12 percent discount on tracks ($1.49) and 9 percent on albums ($15).

Previously, Australian music buyers have had to choose between large catalogues protected by Microsoft's or Apple's DRM, or a more limited selection of MP3 files.

The significance of MP3 tracks is that they can be played on practically any computer, audio player, music-capable phone or PDA, including Apple's popular iPod and iPhone.

"We are confident the popularity of the MP3 format, our Australian-first agreement with all the top music labels and the power of the BigPond brand will mean customers will be clicking and downloading from us because we are the only place in Australia to offer legal downloads in MP3 format from all the major labels," said Justin Milne,  BigPond group managing director.

The factor that may provide BigPond Music with an edge over the iTunes Store is that Telstra does not meter downloads from its own site. Given its large subscriber base, the relatively small data allowances and high charges for excess data, many existing customers are likely to stay with Telstra when buying music.

This is the same contentious situation that occurs with movie downloads. BigPond exempts its own store from metering, which provides a significant advantage over competing retailers and rental services.

What other factors will help BigPond Music take on iTunes? Find out on page three.



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