Warner Yes, Warner No

AnywhereCD is a website developed by entrepreneur and MP3.com founder Michael Roberston. Basically the website sells both MP3 albums and a bundle of CD with the MP3 album at a slightly larger cost. For an example a MP3 album can cost $11.95 and the CD+MP3 album bundle would cost $14.95. Some albums have a standard album price even though they have many tracks and some are prorated. “Tracks are 192 Kbps MP3, and the site is very no-frills.” Just recently AnywhereCD made a licensing deal with Warner Music Group – entailing that Warner would represent a “variety” of music in the online store. Just to name a few; “Saint Etienne, The Shins, Iron & Wine, Pigeonhed and some from other bigger acts from more major labels like “Larry the Cable Guy, Static-X, Shadows Fall, Josh Groban and Fountains of Wayne”. The trick is that Anywhere CD has a help page which links to a Youtube video that demonstrates how to download your purchases etc. Neat idea. Sounded like a good business model for online incentives to buy CDs right? Wrong.

Just yesterday it was released that Warner gave notice of termination with AnywhereCD due to the fact that the “site sells Warner Music Group albums in the unprotected MP3 format”. A WMG representative (quoted in an article at

Billboard.biz) said, "AnywhereCD is selling Warner Music Group content in a manner that flagrantly violates the terms of our agreement. Accordingly, we have sent them a notice of termination and they are required to immediately remove all of our content from their site."- Coolfer.com.

Roberston’s response to the claims his site was helping the fans learn how to rip a MP3 versus sell an MP3 format was in defense that his thinking “was [that they] should give the consumers a reason to buy an album…"If you buy the album then I'll give MP3 tracks pretty much what you get with CDs anyway”. -Ruters.com

It seems strange that such a big company like Warner would have clearly understood the business model before signing an agreement. This demonstrates almost a desperate measure to jump on the next bandwagon and anything that can sell a CD. Warner might have been in a good position at AnywhereCD, most definitely a CD plus a download sold together is a consumers dream – and only for a couple dollars more! Who wouldn't buy?