MUMBAI: BSkyB has signed a partnership deal with Universal as its first partner to launch an online subscription music service.
This deal would challenge Apple as it direct competitor, says a Reuters UK report. The service is scheduled to launch later this year and will initially be PC-based. Details of pricing, the name of the service and a launch date will be released later.
The tracks on the site would be available in the MP3 format, which would make it easy for many devices, iPods and mobile phones to use the service. Users can download unlimited songs for monthly subscription.
BSkyB will go in for joint ventures to explore its market in Britain and Ireland. The group will also sign up new music companies at a later date, says the report.
In a world where a majority of UK homes have high speed broadband access, consumers will welcome a safe, state-of-the-art service and legal alternative to those services which exploit musicians without compensation," the Reuters report quotes Universal's Lucian Grainge as saying.
Apple iTunes has a market dominance of more than 70 per cent. Some analysts suggest this scenario has prevented music companies from negotiating better deals.
The new service will offer a range of pricing levels, with higher prices allowing for a greater number of downloads.
Universal Music Group is open for similar deals to partner with different groups in different companies, the report says.
"It's clear that there's huge demand for online music and companies like Sky and Universal Music are well placed to work together to meet consumers'demands," says BSkyB Chief Operating Officer Mike Darcey.
Sky will be the majority shareholder, and like Universal, other key partners will be invited to take a stake.
Source: http://www.radioandmusic.com
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