Universal Music Group—the world’s largest music distributor and the same folks Microsoft is paying for every Zune player sold—has announced a licensing deal which will put Universal music on the forthcoming ad-supported peer-to-peer file sharing service QTrax.
QTrax started off life as a Gnutella client; the operation is now a subsidiary of Australia’s Brilliant Technologies, whose LTDnetwork has developed hundreds of specialty ecommerce sites for U.S. and worldwide brands. As record labels have successfully sued peer-to-peer file sharing sites into oblivion, several have attempted to "go legit," offering licensed, legally distributable content.
Qtrax is taking the same route, and we originally due to launch its ad-supported service in late 2004. Although it’s now late 2005 and QTrax still hasn’t gone out the door, its deal with Universal marks an important milestone: the company now has distribution arrangements with all the "Big Four" music publishers Sony/ATV, Warner Music Group, EMI, and now Universal. The company has also struck deals with independent licensers like the Orchard, GoDigital, as well as artists’ organizations BMI and ASCAP.
Qtrax says it plans to offer "unlimited" free downloads and song plays from music licensed on its service, which will be driven by advertising revenue. Qtrax’s original plans called for songs to be playable five times via a DRM-encumbered .MPQ format, although technical details on the planned service are sketchy. It’s probably safe to assume that, like tracks to be offered from the upcoming free, ad-supported Spiral Frog music service, music tracks distributed via Qtrax will not be DRM-free.
