US second-hand digital music marketplace ReDigi is preparing to launch in Europe and expand into areas including ebooks and video games.
The company labels itself as the world’s first legal online marketplace for “used” digital music whereby consumers can sell on second-hand digital goods as sites such as Ebay allow for physical items.
When someone sells a song on Redigi, the company moves the music file to its own servers and removes copies from the user’s computer. The buyer can then access the song through the Redigi app, and sell it on.
ReDigi takes a cut from every transaction made on its site and songs sell for an average of around 60 cents.
For artists, ReDigi allows them to register with its site and receive 20 per cent of all sales of their music through its platform.
The model has already raised issues over copyright laws in the US, where it was last year accused of copyright infringement by Capitol Records and is awaiting a judgment from a New York court.
Source: Financial Times