EMI tipped for music download deal

EMI is set to become the first large music group to allow the downloading of its catalogue on to CDs.

EMI is set to become the first large music group to allow the downloading of its catalogue on to CDs.

The music group will today announce a deal with digital media company Roxio to develop a secure way of reproducing songs on blank CDs, according to the Financial Times.

The move comes as EMI seeks to cut manufacturing and distribution costs after its failure to merge with German rival BMG.

EMI, whose artists include Pink Floyd, Robbie Williams and Janet Jackson, is keen to outsource some of its CD manufacturing business and has been striking deals with internet companies over different forms of digital distribution.

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The BMG deal, which was EMI's second attempt in 18 months to merge with a rival, would have resulted in annual cost savings of about £200 million sterling.

Company bosses are keen to pursue the digital dividend at the end of the decade that will boost record companies as consumers begin buying music through digital channels.

Revenue for copyright owners from CD burning - or recording - is unlikely to be substantial initially, but it is key to the success of online sales, Roxio's chief executive Mr Chris Gorog told the Financial Times: "People do not want to listen to music on their PCs, but in their cars or on a Walkman.

"I don't know of many parties where people gather round a computer," he added.

PA