Online music fans will for the first time be able to legally share tracks by big names such as Oasis, Beyonce, David Bowie and Elvis Presley after the artists' record label signed a ground-breaking deal with a new internet service provider.
In what some see as signalling a dramatic shift in the way consumers buy music, the provider, Playlouder, has licensed acts from SonyBMG, the world's second largest record label, and is confident that the other two big record labels, Universal and EMI, will follow suit.
Illegal file sharing, which allows users of software such as Kazaa, Grokster and eDonkey to swap pirated tracks over the internet, has been blamed by the record industry for largely contributing to a 25% slump in global sales since 1999, worth around £1.3bn a year.
Playlouder is offering the first legal alternative with a comparable experience to the "peer to peer" file sharing sites often used to swap pirated tracks.
Subscribers will be charged £26 a month for a high speed broadband internet connection, similar to the price charged by BT, with the added attraction of being able to share as much music as they want with other subscribers at no extra cost.
Because there will be no restrictions on the format in which the traded music is encoded, users will be free to transfer songs to any type of digital music player, including the market leading Apple iPod, or burn them to CD.
However, not only will consumers have to pay for music which they currently acquire free, albeit illegally, but they will also have to change their internet provider.
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