Legal p2p Filesharing?

April 25, 2007

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The big majors (now three of them) are supporting a new firm called Qtrax, which is supposed to be a legal filesharing p2p system. It will be financed by advertisments. See the NYTimes article and the press release of Qtrax.
Its legal, yes. It uses a gnutella client, yes. BUT there is no filesharing…
Most of the songs you can just hear five times, than you have to buy them.
All files are DRM protected.

Doesn´t sound like a p2p filesharing system to me!

Anyway, two interesting things here:
First, the concept of an ad supported service. These services have  big potential cause they fit to the high consumption, but low spending behavior of the young digital music fans, those guys who won’t pay for music anyway.
And second the idea of using the peercasting concept (broadcasting+peer to peer): The users pay for most of the transaction costs themselves, which means low fix costs for Qtrax.

In my opinion, the Qtrax model will see hard times, cause the deal for the customer doesn`t sounds  so good at the moment. The customer pays for the transaction costs, he must pay for the content, and he has to enjoy the advertisement…

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