Sony BMG, Universal Music Group and Warner Music Group have agreed to allow their catalogues of music to be made available on Peer Impact, Wurld Media's peer-to-peer digital file-sharing network.
Peer Impact is expected to launch next spring; it is currently being beta tested.
Wurld Media says Peer Impact will harnesses peer-to- peer technology to create a low-cost infrastructure for distributing licensed content. It says the business model will allow consumers to buy and share music, video and digital content legally, while ensuring that artists and rights holders receive compensation for each file shared on the network.
Wurld Media CEO Greg Kerber told Music Industry News Network: "Peer Impact actually revolutionizes P2P in two ways: By minimizing distribution costs and by allowing legal file sharing within a closed network. Our goal is to populate Peer Impact with the greatest, and most diverse, collection of digital content anywhere.
"The online media market is presently split between authorized legal paid-download services and unauthorized free services; the consumer is stuck somewhere in the middle, and that's where Peer Impact comes in. From the beginning our objective has been to reach out to the consumer and help build a secure and legal file-sharing community, created by – and for – the fan, but which also ensures that digital-rights owners get compensated. We look forward to realizing that objective with the coming launch of Peer Impact."