eBay tunes up a test of the digital music download market

As it searches for new ways to grow, eBay will soon launch a test of digital music download sales from its music category section, the company says. But analysts are skeptical that eBay will succeed in a market already saturated with major players.

EBay will soon launch a 180-day test of digital music download sales, with sellers beginning to appear in its new Digital Downloads section over the next few days and weeks, a spokesman says. Although there is already a Digital Downloads link in its music category, it has yet to offer any listings.

The move represents a policy reversal for eBay, which up to now has avoided getting involved with any types of digital downloads, including e-books and software. “We’re going to gauge how well digital music downloads will sell in the eBay marketplace,” the spokesman says. He adds that eBay will pre-approve all sellers to check for ownership rights.

EBay isn’t providing details on the types or number of sellers it will host on eBay.com. But Josh Bernoff, analyst who follows the digital music market for Forrester Research Inc., says eBay will probably try to set up small retailers who don’t have the resources to either offer their own digital download service or partner with an established digital music provider.

Bernoff adds that eBay may be too late to the market and without a defined service plan to attract customers. “You don’t tiptoe into digital music downloads,” he says. “You’re either in or you’re out. If you’re going to sell downloads, you need to offer a full service around it.”