Some inside the major labels have long argued that the music industry should be embracing the opportunities digital music offers rather than running up huge legal bills suing underground MP3 suppliers. While the RIAA concentrated on the litigation, others were pursuing that more positive strategy, the result of which was the rapid growth of the legit digital sector.
Actually, in the end, it was the technology industry that led the way with regards legitimate downloading. Apple Mac, in particular, gave the whole legit download sector a much needed kickstart when they launched iTunes - a pay-per-track download service to complement Apple's iPod MP3 player. While the MP3 services set up by music industry players back in 2001/2 had never captured the public imagination, suddenly everyone seemed to be paying to download. Other technology firms like Microsoft and Roxio followed suit (the latter having acquired the Napster name). As iTunes sold its 25th million download, record labels large and small found that enemy number one - digital music - was actually becoming a serious income stream.
As we approach 2004 the legit digital music sector looks likely to explode. The key download services are likely to come from those companies who don't actually need to make huge profits from the download sales themselves in order to survive - that is to say technology firms who sell MP3 players or software on the back of their download operations, or ISPs who can use download facilities to differentiate their internet offer.
Or, perhaps, major consumer brands who will badge download services in order to gain a positive association with the music world - a strategy formally announced by Coke in the UK this year, and likely to be opted by other major brands in 2004.