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Stop speculating, the alternative has arrived: Internet users in the UK can soon expect free, legal MP3s as part of their ISP subscription, now ISPs here have a quick and easy solution that will allow them to offer legal music downloads to customers, from 7Digital.

The UK service today announced a new range of services for ISPs, services designed to enable them to offer integrated, legitimate music download services to customers. And 7Digital is already meeting with ISPs with a view to offering music to subscribers.

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The BPI really doesn’t get it - that’s a subjective judgement, but one based on the organisation’s own behaviour. The Guardian reports that the music industry group sent a stiff letter to ISPs and the UK government just before the recent deal between the organisations and the BPI was announced.

BPI Chief Executive Geoff Taylor said that while the organisation welcomed the deal between ISPs and the music industry, it felt it important to “clarify” it didn’t think the agreement an “exhaustive solution”. And then went on to threaten its ISP partners with legal action…
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Universal Music Group International chairman and chief executive, Lucian Grainge, doesn’t want to destroy Apple’s iTunes with the launch of the new Sky music service, and nor does he want every file-sharer knocked off the internet.

Speaking to the Telegraph, Grainge admitted file-sharing to be something that keeps him awake at night, saying, “The fact of the matter is it is illegal. Piracy is illegal. Peer to peer is [long pause] unfair.”
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The UK Green Party has slammed the anti-file-sharing deal reached lastweek between the recording industry and ISPs, warning that it will have a “serious impact on internet access for vulnerable people.”

The deal, negotiated and approved by the UK government,  would allow the six ISPs (BT, Virgin, Orange, Tiscali, BSkyB and Carphone Warehouse) to slow down or cut off the internet connections of people simply suspected of file-sharing. Information on potential suspects will be provided by the BPI.
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Billy Bragg is one of the first UK musicians to give his opinion on the new file-sharing policing deal between UK ISPs and the BPI, writing in the Guardian.

Under the deal, thousands of suspected file-sharers will be sent warning letters. Bragg thinks its a waste of time, a smoke-screen designed to hide the nature of the crisis music labels face.

“Without some kind of legal framework to back it up, it’s nothing more than a gesture,” he wrote.
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Six of the UK’s biggest internet service providers have reached a deal with music industry body the BPI to combat music-piracy.

The six biggest UK ISPs, BT, Virgin, Orange, Tiscali, BSkyB and Carphone Warehouse, have all agreed the deal, which commits all parties to work together to reduce illegal music file-sharing. Thousands of letters will also now be sent to ‘net users the BPI suspects of illegally sharing music.
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Figures released today by British record companies’ body the BPI show that labels are beginning to generate significant revenues outside their traditional base of retail sales - Record company revenues outside direct sales of music increased by 13.8 per cent to £121.6 million in 2007, from £106.9m in 2006. These additional revenues now account for 11.4 per cent of record companies’ domestic income.
 Record companies generate income through sales (selling music recordings to consumers via retailers), licensing (giving permission for third parties to use recordings commercially) and multiple-rights income (revenue derived outside recording copyright).
New partnerships and business models mean record labels’ income through licensing is increasing. Labels are also generating income outside the direct sales of music and licensing by extending their relationships with artists to include a broader range of artist services.
 Digital sales are going from strength to strength, with digital formats now accounting for around 85 per cent of all Top-20 singles sales. More than 200 million downloads have now been sold in the UK since the launch of the first mainstream stores in early 2004. In total, digital formats now account for 8.6 per cent of all UK record company sales income.
Digital licensing income is increasing too. On-demand streaming services, both online and on mobile platforms, including advertising-supported services such as We7 and Yahoo Music saw income from new digital business models grow by 55.7 per cent.
Synchronisation licence income, from the use of music in advertisements, films and games continued to grow strongly in 2007, where revenues grew by 20.1 per cent. There was also a 14.8 per cent increase in record label income from PPL: broadcast and public performance licensing.
360 degree deals are also having an impact. Such deals may generate income from merchandise, touring, the use of artist logos, digital products such as mobile phone wallpaper, and sponsorship deals. Revenues generated by record companies in this area increased by 16.2 per cent in 2007.
 BPI Chief Executive Geoff Taylor said: “Today’s record business is unrecognisable to that of five years ago. Labels have rapidly evolved into digitally literate businesses that generate significant revenues through licensing.”
 

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