Online Music Catalogs Lacking

By JON HEALEY

Aug. 1, 2002 12 AM PT

TIMES STAFF WRITER

Despite a series of improvements that make legitimate online music services more attractive, the major record labels still can’t give music fans something they’ve been getting from pirate services for more than three years: a comprehensive catalog of songs.

The latest example is the new version of Pressplay, the online music venture jointly owned by Universal Music Group and Sony Music. Due to be released today, the update lets consumers load an unlimited number of songs onto their computers for a flat monthly fee--a first for an online service backed by the major labels.

But Pressplay’s lineup, like that of every other authorized service, has gaping holes. No Nirvana or Madonna hits. No Beatles or Beach Boys.

Some of those holes could be filled by signing more deals with major record labels--Pressplay has Universal, Sony and EMI in its fold, but not Warner Music Group or BMG. Other hurdles include problems related to billing systems, publishing rights and the refusal of a few stars to make their works available online.

Executives at several labels and online services say more tracks are becoming available every week. But some also said it will take years for any authorized service to match the depth and breadth of the selection on the most popular file-sharing services, which don’t pay copyright owners.

Authorized services are far more restrictive than the free ones, typically using electronic locks to limit movement of their songs.

Over the year, the major labels have gradually lifted some of the limits they’ve imposed on the authorized services. There’s been a focused effort in the last six months in particular to make those services more successful, rather than worrying about how they might eat into CD sales, said Sean Ryan, chief executive of online music distributor Listen.com.

The first signs came in December, when Pressplay announced that it would allow subscribers to record a portion of their downloaded songs onto CD. Later, EMI, Universal, Sony and Warner all disclosed plans to let consumers burn CDs with more of the songs they obtain legitimately.

The new version of Pressplay lifts its previous limits on the number of songs downloaded or played from its online jukebox. It also takes a new approach to CD recording and portability, letting users pay about $1 per track to burn CDs or move songs to selected digital music players.

Analyst P.J. McNealy of GartnerG2, a technology research and consulting firm, said the new version of Pressplay is the first compelling approach to online distribution he’s seen. The incomplete catalog, he said, is “the single biggest hurdle left.”

Mike Bebel, Pressplay’s chief executive, said the company expects to have all five major companies on board by the end of the year. Although the gaps in the catalog are frustrating, “everyone is working in earnest to fix that problem,” he said, noting that such superstars as Bruce Springsteen have been added through these efforts.

The main reason the online catalogs aren’t complete, label executives say, is that it takes time to win clearances from the music publishers and establish new systems to track and account for songs delivered digitally. But a number of top artists and those with older contracts have to approve any online distribution, and some have been reluctant to agree.

Ted Cohen, vice president of new media for EMI, said he’s been trying to explain to artists that they need to give fans a legitimate alternative to the pirate services--even if no one is making much money yet from services such as Pressplay. Otherwise “it’s creating a mind-set that music is free.”

The problem for artists is that they have no idea what effect the new services will have on CD sales and how much they should collect from them, said Michael Hausman, an artist manager and co-founder of United Musicians. “Until there’s that kind of general understanding about what artists are going to be paid, I think a lot of artists are going to be uncomfortable with it.”

Some also question whether there’s any point at all to supporting services that have yet to click with consumers. “Piling everybody into a car with no tires and an engine that malfunctions, we may have everybody in the car, but it’s not going anywhere,” said Jim Guerinot, whose Rebel Waltz management firm represents the Offspring and No Doubt.

(BEGIN TEXT OF INFOBOX)

Going Legit

Authorized online music sites seem to pale against pirate sites, but the industry is trying to enhance their offerings.

Pressplay

Monthly cost: Starts at $9.95

Terms: Unlimited downloads and streams with no portability; $1 per song for CD burning and portability.

Who’s missing: All Warner Music Group and BMG artists

MusicNet

Monthly cost: Starts at $9.95

Terms: 100 downloads and 100 streams with no portability; downloads expire at month’s end.

Who’s missing: All Universal Music Group and Sony Music artists

Rhapsody