destra declares music war on iTunes

Stan Beer
Wednesday, 26 October 2005 17:15

Your IT - Home IT

Online music provider, destra Music, part of destra Corporation Limited (ASX:DES), has launched an aggressive attack on Apple iTunes' Australian debut, slashing its music download prices by more than 50%.

destra has reduced the price of all of its digital downloads to just 89 cents per track, $1 off its regular price of $1.89, until the end of November 2005. Apple, which launched the long awaited Australian iTunes site yesterday, drew first blood in what is shaping up to be a local digital music war, when it priced its music downloads at $1.49.

destra Music has benefited greatly from Apple's tardiness in entering the Australian market, which has enabled the local company to gain a foothold in the online music space and form alliances with online partners such as Chaos Music, JB HI-FI, ABC, Harvey Norman, and Leading Edge. The music is in the Windows Media Player format and has built in technology for customers to copy the songs onto a CD three times, as well as to a portable media player.

destra also operates a free music website, MP3.com.au, which it claims has over one million downloads and streams per month. According to Destra the site is benefiting from consumers’ adoption of iPod devices.

“Since marketing to Apple iPod owners that free legal music is available on our MP3.com.au website, the download rush has overwhelmed us. Our advertisers love it and the advertising revenue we generate goes straight to our bottom line,” Domenic Carosa, destra’s CEO, said.

“Whether consumers purchase music from a destra Music partner site or download free music from MP3.com.au, destra leads the market and delivers more to consumers.”

What happens at the end of November when the 89c offer from destra lapses and whether destra can sustain its price war with Apple remains to be seen.