Major record labels should 'find solution to illegal downloading'

30th March 2009

Most of the major record labels are not changing the ways they operate with the internet because of the money they lose through it from illegal downloading, according to an expert.

The founder of TorrentFreak.com, simply known as Ernesto to preserve his identity, stated that labels are still continuing in their pursuit of stopping and charging illegal downloaders as they make all of their money through album sales, unlike the artists themselves who may only make around ten per cent.

Ernesto explained: "Since the internet allows fans to discover music on their own, and since it made distributing music as easy as copying a file, the role that the major record labels have played for years is becoming less significant."

He added that by going after illegal downloaders, they are simply protecting this old business model, with the desire to prevent and not cure downloading being low on their list of priorities.

According to the International Federation of the Phonographic Industry, 95 per cent of music downloads are illegal.

According to a recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent).