Jupiter: Euro Labels Should Expand Broadband Material

The European music industry will continue to suffer from illegal peer-to-peer file-sharing unless labels team with the growing number of broadband service providers for a solution, according to a new report.

The study, published Monday by Jupiter Research, concludes that more than 18% of Europe's online users are using P2P services to download music for free, despite the growing number of legitimate pay services.

The study says that to lure music listeners away from P2P networks, labels should increase the amount of repertoire they license to broadband service providers, which use digital music to attract subscribers. Jupiter also advises labels to create quality digital services that can compete effectively against illegal file-sharing.

"People are upgrading their Internet services to download more quickly," says Mark Mulligan, senior analyst at Jupiter Research in London. "So the [broadband services] have been doing more than turning a blind eye to file-sharing, putting them in a contentious position with the labels."

The report, which examines broadband service providers in 25 countries and a sample of 5,000 consumers in six major European markets, states that 43% of those polled expressed no compulsion to pay for digitally distributed music. However, 29% of the region's broadband service providers are eager to sell authorized digital music.