The long-delayed but much-anticipated service from Qtrax is finally going to launch - supposedly going live this Sunday at 12:00 am Eastern. Qtrax, in case you haven't heard, is a P2P file sharing network that has been in the works for eight years. However, it's not just any P2P file-sharing network - it's the world's first free and legal P2P file-sharing network that has the support of all four major record labels (EMI, SonyBMG, Universal Music Group and Warner Music Group).
According to a recent study by Jupiter Research, for each song sold, 100 more were stolen. The study also reported that 94% of online music consumers were unwilling to pay for music. The record labels finally got the hint: the Napster Generation thinks music should be free, and they will find a way to get it for free, despite laws or lawsuits. When the record companies realized all their attempts to make up for lost revenue from CD sales had failed, they knew that they now had no alternative but to offer free music to the online masses.

The Qtrax catalog currently boasts 5,000,000 songs, but has plans to eventually offer over 25 million. This makes Qtrax poised to become the most complete online catalog of no-cost legal downloads anywhere in the world. The site, which will launch in Cannes, France with support from stars like James Blunt and LL Cool J is being heralded as the "death knell for CDs" as well as "a massive challenge to iTunes."
What's most important about Qtrax's launch is the changed mentality of the record labels' vision for the online music marketplace. Having them realize that they must offer free music in order to compete with industry behemoths like iTunes, is a promising step in the right direction.
And free music doesn't have to be the disaster labels have always thought. Says Qtrax chief Allan Klepfisz, "the idea of free music is not so radical. Commercial radio and free-to-air television is paid for by advertisers and available for free to consumers."
Exactly.