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Gateway Ignites Another Digital Music Debate

Ad aimed at educating consumers is already causing controversy.

Scarlet Pruitt, IDG News Service

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Labeling the record industry's stance toward the digital music market as anticonsumer, PC maker Gateway has launched a new marketing and consumer-education campaign to express its own views, dubbed "RipBurnRespect."

The campaign, which was kicked off Thursday with a Web site, a TV spot, and a two-week digital music promotion for PC buyers, is aimed at supporting consumers' fair-use rights but is against peer-to-peer services, according to Brad Williams, director of corporate communications at Gateway.

But while Gateway aims to make itself a leading consumer educator on digital music rights, the company has already run into resistance. CBS refused to run a 30-second RipBurnRespect spot because it didn't agree with the expressed views, according to Williams, who heads up the campaign.

"From our point of view, it's ironic that a large media company like CBS didn't take the time to fully understand our message," Williams says.

Difference of Opinion

CBS is owned by media and entertainment giant Viacom, which also owns or has stakes in Paramount Pictures, MTV Networks, the Blockbuster video rental chain, and publisher Simon & Schuster, among other ventures.

Viacom also reportedly threw its support behind a bill introduced by South Carolina Democrat Fritz Hollings last year that aimed to incorporate antipiracy protections in all consumer electronics devices. Gateway came out firmly against the Hollings bill.

While no one from CBS was immediately available to comment on the ad Friday, Williams says that the network also refused to run another ad from the PC maker last year featuring Gateway President Theodore Waitt saying that the company supports consumers' fair-use rights when it comes to digital music.

Ongoing Debate

The quarrel, if true, underscores the tension surrounding the digital music debate, which has divided many media, technology, and consumer-rights advocates. While the record and movie industries seek to protect their intellectual property from piracy, specifically over illegitimate peer-to-peer networks, some other parties think that their efforts stretch too far, preventing consumers from enjoying legitimate digital music rights.

"The record industry and the RIAA [Recording Industry Association of America] in specific have done a pretty good job at making it ambiguous in consumers' minds as to what is okay, and have confused legitimate and illegitimate uses [of digital music]," Williams says.

However, the RIAA claims that it has been clear in its message on what is legal and illegal use of digital music. Furthermore, RIAA President Cary Sherman says in a statement issued on Friday that "Gateway's views are welcome acknowledgements of the rights and needs of artists and record labels."

Rip, Burn, and Respect

Gateway believes it has "taken the lead as far as educating the public," according to Williams. Its new RipBurnRespect site features information on both fair-use rights and artists' rights, as well as free music downloads. But Gateway's real motivation could be closer to home, analysts say, given that the company wants to sell PCs outfitted with CD burners.

Part of the RipBurnRespect campaign is a marketing promotion that offers new notebook or desktop PC buyers a "Digital Music Studio Pack" that includes a trial 30-day subscription to the Rhapsody Networks music subscription service with 50 free burns, plus 100 MP3 downloads from EMusic.com and 20 blank CD-Rs.

But Williams claims that the campaign is really about educating consumers.

"Our aim is to help people understand the difference between fair use and piracy, and to show them how fun music can be," he says.

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