Visa Ends Relationship With AllofMP3
Pressure mounted on the cut-rate Russian download destination AllofMP3.com when Visa International suddenly ended their relationship. The credit card company has now refused to honor purchases on the store, citing intellectual property infringement concerns raised by a number of music industry trade groups, all of whom are rallying to shut down the Russian arrogant company.
Even the US Goverment is tightening the screws. US Trade Representative Susan Schwab threatened to block Russian entry into the WTO if the AllofMP3 situation was not resolved.
AllofMP3 reminds us of MP3.com’s combustion when Michael Robertson declared that “the major labels are dead.” AllofMP3 is now dancing as fast as it can to substantiate its model and hoping the plug does not get pulled in its respirator. The company is now pushing a free download model, one that focuses on a proprietary .mp3x format, playable only on a customized, AllofMP3 player. The tracks cannot be shared, and can only be played with an internet connection. Currently, a beta application is being offered on the site, and AllofMP3 buyers are being offered a free option alongside every purchase. A quick test revealed that the store functions well, though the limited-use concept may have trouble gaining wider acceptance especially without the aid of credit card transactions.