A Qpass study shows more than a third of mobile portals allow consumers to shoplift unsecured pre-listening content from stores. Apparently, more than a third of Web sites offering music for purchase are unsecured, allowing consumers to preview music files that can be easily converted into 'shoplifted' ringtones.

Key findings also highlight that the European mobile and music industries are estimated to have lost 50m euros in 2004, and a further projected 336m euros by the end of 2007 from unsecured pre-listening ringtone downloads.

Researchers that tested 100 Web sites comprising 42 mobile carrier portals and 58 online entertainment and music stores offering full track music download found that users can simply download free pre-listening music files as mobile ringtones from more than a third of the Web sites tested. Very simple, this process of inadvertent content 'shoplifting' is accessible to consumers of all ages, increasingly familiar with downloading content to mobile devices such as smartphones and iPods.

Preview music files, which if not secured can be downloaded as MP3 or WAV files onto a PC, and then transferred directly onto a mobile phone via Bluetooth or infrared technologies. Since the average pre-listening music file is as long as an actual ringtone, typically between 15 to 30 seconds of a track, it is instantly usable, eliminating the need for any complex editing.

The option to isolate and save files in MP3 format onto a PC or laptop is not a prerequisite of pre-listening files and this can be avoided to make content secure from shoplifting. Pre-listening content can be secured by using streaming, browser embedded pre-listening or the use of a Digital Rights Management (DRM) protected file format.

(DRM) is an umbrella term referring to any of several technical methods used to control or restrict the use of digital media content on electronic devices with such technologies installed. The media most often restricted by DRM techniques include music, visual artwork, and movies. Some digital media content publishers claim DRM technologies are necessary to prevent revenue loss due to illegal duplication of their copyrighted works.

Civil libertarians, in contrast, argue that transferring control of the use of media from consumers to a consolidated media industry will lead to loss of existing end-user rights, as well as stifling innovation in software and cultural productions. No current DRM technology includes a mechanism to enable fair use rights per se, though some DRM methods allow acts of copying which may coincidentally align with legal use rights.

Arguably, a technology cannot, in principle, know what legal restrictions and rights apply in a specific jurisdiction, usage context, under an external contract, or to an individual author, owner, or publisher.

'This is the mobile and cyber-equivalent of test-driving a car and then not having to give it back to the garage,' said Steve Shivers, Senior Vice President, Corporate Strategy and Development at Qpass. 'When the trial is as good as the actual product, why should consumers spend money to buy it?

'It's very simple to take advantage of unsecured pre-listening content and even 12 year olds can do this. Meanwhile, the music industry is putting its faith into the mobile industry to ensure its offerings are secured. The amount of revenue loss to both the mobile and music industries is concerning, when this appears to be a complete oversight.'

Out of the 100 Web sites tested, two thirds of Web sites offered preview music files between 15 and 30 seconds, which is the perfect length for a ringtone. 'It is a scandal that even online ringtone stores are giving away content that they claim their business is built on. Everyone's talking about mobile DRM, but the majority have forgotten to pay any attention to online storefronts.

'Ringtone sales are by far exceeding singles sales in most European countries, bringing the mobile and music industries together in tighter collaborations. 6 to 10 per cent of the music industry's revenues were already achieved through ringtone sales in 2004. This is a huge market opportunity for music labels and artists but one that suffers collapse if consumers can simply download free ringtones online,' added Shivers.

Qpass attributes this problem to the need for the mobile and music industries to enable users to preview music before they purchase it, an important part of the customer purchasing experience.

BIOS, Jul 26, 05 | Print | Send | Comments (0) | Posted In Mobile phone