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Still, file sharing affects independent artists just like it does marquee label acts. Fans can discover bands on MySpace and other Web sites. They no longer have to rely on big recording labels' and their huge promotion, marketing, and distribution machines to be discovered. The Internet is supposed to be fueling one of the best periods for independent artists. It's also one of the companies that hasn't been invited to MySpace Music. IODA, which was founded in 2003, distributes music from independent labels to retailers, such as iTunes, Amazon, and RealNetworks' Rhapsody. "There was some belt tightening while the company concentrates on reaching profitability next year," Staples said. She did say the company now has 75 employees. Staples declined to disclose how many employees were let go, but she said it was less than 15. A source affiliated with San Francisco-based IODA, which stands for Independent Online Distribution Alliance, said the company trimmed staffing by 15 percent. The "reduction in workforce" took place a couple of weeks ago and affected mostly the technology and administrative units, according to Heather Staples, a spokeswoman for the company. Telstra said this deal is the first part of its ongoing plans, with negotiations underway with more independents, and the MP3 catalogue will grow significantly over the coming months.IODA, the indie-music distributor, has gone through a round of layoffs, the company confirmed Wednesday.
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Warner Music Australia's president and chief executive officer, Ed St John, said he welcomes BigPond's initiative and applauded its commitment to operating a legitimate music download service. We have been working with Telstra with its Music strategy over a number of years and we believe this is a major step in further building strong retail download services in Australia," said Denis Handlin, chairman and CEO of Sony BMG Music Entertainment Australia and New Zealand.
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"We welcome the launch of BigPond Music's MP3 download store. Representatives from the major record labels were excited about the deal and revealed they have worked with Telstra on its online music strategies for a number of years.
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The MP3 format is compatible with all standard music player software, including Windows Media Player, iTunes and RealPlayer. BigPond's MP3 catalogue is available encoded at 256Kbps and 320Kbps. Whether you’re a record label, distributor or content owner, we want to put the power of creative independence into your hands.
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The MP3 format is the most widely supported digital music format worldwide, and one of the reasons for its popularity is that it is free of Digital Rights Management (DRM) technology that locks downloads to a limited range of devices or platforms. Our innovative technology and flexible services provide a complete ecosystem for your digital distribution setup, making the process of sharing your music worldwide simple yet effective.

The new agreements - no doubt a move by Telstra to claim a part of Apple's growing iTunes music download market - will see BigPond offer music from record labels Sony BMG, Universal Music, Warner Music and EMI, as well as Australian independent record labels and distributors including MGM, Inertia, Liberation, IODA and AmpHead. But from today BigPond's new service means consumers can transfer tracks from their computer to almost any device they care to use", Milne said.Īccording to a BigPond-commissioned survey, more than 80 per cent of Australians who own an MP3 player agreed that they would benefit from an Australian online MP3 store many more said that they found music download services confusing to access. "Until now many people found it complex to download music legally, and ended up frustrated when they discovered their music was locked onto a single device or was impossible to transfer to the player of their choice. Digital music distribution firm IODA has announced five new clients for its D3 service: Discograph, Forte Music Distribution, Harmonia Mundi Distribution, Cobayn, and the Music Information Center Austria.
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BigPond's group managing director, Justin Milne, said the move to the MP3 format will mean that music downloaded from the BigPond site will be compatible with all standard music players, including the iPod, Sony's Walkman range and a wide variety of other portable digital music players and home media centres. Until recently many online music customers were committed to downloading tracks using formats that were not compatible with all music devices. The deal also covers leading Australian independent music labels.

Telstra BigPond Music unveiled its new online music store today after cutting a deal with major record labels to provide their tracks on the site as MP3s.
