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Universal to offer free music downloads

Updated on 29 August 2006

By Benjamin Cohen

A major shake-up of the online music industry could be about to take place.


>>Watch the report

The world's biggest record company Universal will be offering free downloads via a new company called Spiral Frog.

It's a major change from current services like iTunes, which charges users for each song, or asks them to pay a subscription.

The company says it will rely on advertising revenue to make the service profitable.

It's an acknowledgement that the vast majority of people don't pay for their downloads and it reveals there's real money to made from internet ads.



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