Interoute dips into digital distribution

European network operator Interoute today announced the launch of the latest version of its Share service, which allows digital audio content owners to distribute files in a secure environment.

The 2.5 version has a number of additions that will let the company's customers, which mostly consist of record labels, to store digital EPK features such as artwork and album covers. Additionally, the operator had added a watermarked audio feature that gives customers more control and flexibility over the pre-release digital supply chain.

When music finds its way onto peer-to-peer networks before it's even commercially released, often times the culprit is someone within the record company who surreptitiously sneaks out a copy. With the watermarking, that is almost impossible, said Nick McMenemy, vice president of Interoute.

"At no point is it possible to find its way into unwanted hands without the person responsible being caught."

Share currently is being used by EMI, Warner, Saatchi & Saatchi and dance promoter PRohibition Digital to distribute content to and from labels, press, DJs, retailers, download stores and radio stations. The network has handled more than 50,000 tracks so far and expects that to expand significantly because the economics of digital distribution are so favorable to record companies.

"What it means for the likes of EMI is that the time of recording the album is much shorter," McMenemy said. "Also when you're doing a play out to iTunes, it's a huge profit because there's no physical equipment."

Though currently being used mostly for music in both advertising and commercial releases, McMenemy said the company could use the same concept for video distribution. However, movie studios have yet to come together on any kind of standard, McMenemy said.

"The nirvana would be using a Share environment for a major motion picture," he said.