In order to combat piracy the UK Internet provider Virgin Media has has teamed up with Universal to offer their customers unlimited DRM-free music at a fixed monthly rate. However, as with every innovative music service, some major labels fear that Virgin’s all you can eat plan will cannibalize their existing digital sales.

The Internet, MP3 players and file-sharing services have changed the music habits of an entire generation. Instead of buying a few singles or albums each year, consumers now demand unlimited access to music, without restrictions such as DRM.

In an attempt to fulfill this need and to convert illegal file-sharers into paying customers, the UK ISP Virgin Media recently announced that it will offer an unlimited music download service to all their subscribers. Such a service would allow customers to download all the music they want and keep it permanently.

Universal and several smaller labels are backing Virgin’s plan, but not all the major labels are as happy. NMA reports that insiders at EMI and Sony Music don’t think that Virgin’s unlimited download service will convert illegal music downloaders into legitimate customers. They say that the model is flawed and will hurt existing digital sales.

More: http://torrentfreak.com/record-labels-fear-virgins-piracy-solution-090909/