Last.fm Offers Free Music

These are interesting times to be a music fan. The entire paradigm of the business is changing before our eyes as digital downloads seem to take over from the physical CD.   Last.fm, which was bought by CBS last year for $280 million, is the newest service to ring some changes, according to the BBC. It’s rolling out a new, free music streaming service that will be funded by banner ads.   The company has signed agreements with all four major labels andsome 150,000 indies to give access to a massive catalogue. Users will be able to listen to any track three times. After that, they’ll be encouraged to buy the track from one of a number ofsources.   The beauty of all this is that Last.fm has promised to pay the artists a royalty every time a track is played – even unsigned artists who have their music available. If a trackis purchased, Last.fm will share the fee.   The question, of course, is whether streaming can work in a world where ownership can be seen as all.   Richard Jones, who was one of thecompany’s founders, told the BBC,   "We want to make music available free and legally to whoever wants it, while rewarding the artists at the same time…The way people consumemusic is changing – sometimes you just want to listen to it there and then."   The service is set to start immediately in the US, UK and Germany, then debut later in other areas, and youcan bet it will be closely watched.