| 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. | 