BMG Tries Digital Music Downloads

In another small step into cyberspace for the recording industry, music company BMG Entertainment announced Tuesday it has begun offering digital music for download online through the Lycos Web portal.

Single songs by BMG artists presented in the "premium downloads" section of Lycos's music site range from $1.99 for most songs to $3.49 for a Whitney Houston ballad. Full album prices range from $9.99 to $16.98 for downloads.

The songs presented are radio edits or "clean versions" without profanity and are offered in RealJukebox or MusicMatch formats. Both digital music player programs support digital rights management, a technology that prevents unauthorized copying and distribution. Music copied from a compact disc in the MP3 format--suitable for file sharing on Napster's free music exchange--generally lacks copyright protections.

Cooperation and Litigation

BMG entered into a licensing agreement in June with start-up music site Musicbank to digitally stream music from its library. Along with Time Warner's music division, Warner Music Group, and EMI Group, BMG licensed its library of music to MP3.com. (See "MP3.Com Slowly Gets Legal.")

Sony Music Entertainment released about 50 singles for download through various outlets in May.

Seagram's Universal Music Group remains locked in legal combat with MP3.com, and all five major labels continue to seek the end of Napster in a California federal courtroom.

Warner has said it expects to offer digital music downloads in the fourth quarter through America Online. AOL is in the process of acquiring Time Warner.