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Music service Puretracks opens up shop in U.S.
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Canadian Press
Date: Wednesday Oct. 13, 2004 7:52 PM ET
TORONTO Puretracks, the for-profit download service that has been available in Canada for a year, has launched an online music store in the United States.
The site allows music lovers to choose from 700,000 songs. "We are not intending to be a brand like ITunes where we would advertise it directly to consumers," Derek van der Plaat, co-CEO of Puretracks, said from Los Angeles where he attended a Windows Media Player 10 launch.
"We are more of an enabler of digital music services. ... In Canada we power the likes of Bell Canada and Telus and a whole bunch of other partners that are coming on line shortly.
"And it's the same approach that we will be implementing in the U.S. So basically, we're going after communities of interest."
For instance, Puretracks might power a country music website or work with a radio broadcast company to enable radio stations to offer downloads.
"We're all about being where the music consumer is, and not really pulling them there but going to where they are spending time today, and helping those people sell music and sell subscription services."
Puretracks, launched in Canada a year ago, sells digital music files for as little as 99 cents a song. The service does not require customers to install a download player.
In its first week of operation in Canada, Puretracks became the victim of its own success when high-volume traffic crippled its operation less than 24 hours after its launch.
Since then, it has faced stiff competition from other services such as www.napster.ca and www.archambault.ca. And a published report Wednesday has quoted music industry sources as saying that Apple's ITunes could launch in Canada as early as next month.
Van der Plaat said there's "huge room" in the U.S. market for Puretracks as downloading services encroach on traditional music sales.
"This market right now is the size of a couple of hundred million dollars. And it's growing to $4 billion over four or five years. This is what the pundits say. Who knows what it will be."
In terms of revenue in the U.S., Puretracks hopes to match what it did in Canada in the first year, he said.
"We think our Canadian revenues will double next year, and we think the U.S. in addition to that will make a significant contribution."
Van der Plaat suggested that the Microsoft platform is "easier and better at organizing and maintaining your music collection than Apple."
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.

