Operators and music firms are joining forces to prevent Apple dominating mobile music
Mobile music deal seeks to squash Apple
/v3-uk/news/1942357/mobile-music-deal-seeks-squash-apple
12 Feb 2007, Iain Thomson , V3
Mobile network operators and music companies are joining forces to make sure that Apple's domination of the download market is not extended to mobile music.
The groups have launched a mobile music service offering unlimited downloads for £1.99 a week with data costs included across Europe and the Asian markets. For £2.99 a week customers can also use a Mac or PC for downloads.
The MusicStation software has been developed by UK firm Omnifone and will be preloaded onto new handsets from Nokia, Motorola and others.
So far 23 mobile network operators have signed up, offering a potential subscriber base of 690 million users in 40 countries.
"Omnifone has a great opportunity, partly because Apple is doing exclusive deals with carriers and leaving others out in the cold," said Robin Bloor, founder of analyst firm Bloor Research.
"Apple is not willing to share its iTunes revenue with the carriers, and has only one device that is highly priced."
Under the terms of the deal record companies make the largest cut of the revenue, while network operators take a significant portion and Omnifone takes a small percentage.
Vodafone and Universal Music, the world's biggest network operator and music company respectively, have signed up to support the service.
"The real problem with the iPhone is its dependence on one platform, and on commercial terms that are aggressive and involve payments to the manufacturer for exclusivity," said Rob Lewis, chief executive at Omnifone.
"But this also involves handing over that content to Apple on a silver platter on the basis that the music is sold over Wi-Fi in the home through iTunes using Apple's billing system and hardware and not using the billing system of the operator."
The Omnifone software automatically organises music into the most listened to tracks, and includes messages about gigs and news for popular bands. The software also links to a mobile online community similar to MySpace.
"Universal Music Group International is looking forward to the launch of MusicStation," said Rob Wells, senior vice president at Universal's digital division.
"It is one of the most consumer friendly and secure platforms we have seen, and the worldwide potential of the platform and its ability to make music instantly accessible to consumers via their mobile phone is enormous."
The music comes with DRM software built in and locks up 24 hours after the subscription lapses, although it stays on the phone and can be reactivated.
When the phone runs out of memory users can still download new tunes, but the least listened to tracks will be deleted.
The first two networks to roll out the service will be Scandinavian firm Telenor and Vodafone partner Vodacom in South Africa.
Omnifone hopes to have all countries covered with active services by the time the Apple iPhone launches in Europe.
© Incisive Media Investments Limited 2010, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
Do you agree?
Didiom
The Omnifone guys should keep an eye on Didiom. I use their FREE(!) service and second-to-none application since they luanched last week. Their concept is a sea change in wireless music delivery.
Posted by Rob Evans, 12 Feb 2007
klinux is right!
How does this benefit me?!?! And once again, here goes another one of those idiotic subscription services. I'll be damned if I'm going to pay to listen to songs only to lose them all when I stop the subscription. Music is not movies...quit treating it like it is! Heck, I can barely see the need to listen to music on my phone in the first place!
/
Posted by D9, 12 Feb 2007
People want to own their music
this is a bunsiness model that the general pulic will never swallow. People like to own their music. The iPhone will crush this hastily laid out defense. Millions of people have iPods and use iTunes, now they can easily transfer their music to the iPhone, already the Holy Grail of telephony.
Posted by daveleaz, 12 Feb 2007
$312 per year for self-destructing music?
So let me get this straight - US$312 per year to download music tracks that self-destruct when you find you can't justify the payments? Ah yes, the quote ?will enable mobile companies to generate additional revenue from customers? now makes sense...
I think that just like all of the other failed music rental services, this service will languish with most people choosing a device that allows them to very simply buy to own from a library of over 4 times as many songs (four million) which also features 400 feature films, 350 television shows, 35,000 audible book, games and over 100,000 free podcasts.
Not to mention the far better usage rights enabling them to easily share their purchased music to 5 computers (PC or Mac), an unlimited number of iPods (or iPhones) or burn them to audio CDs and play them on any CD player in the world.
-Mart
Posted by Martin Hill, 13 Feb 2007
And this is good for?????
How is this good for the consumer? In other words, let's say I purchase music from an MS PlaysForSure partner like Real. Now I have to pay again so I can get the same songs on my phone? How is that good for me? I can see how it's good for the bank accounts of the music executives and the network operator's executives. I don't see how it benefits me. At least with Apple's way, I only pay once. Period.
This is just more crap from the music companies that is driving people to hate them. If I were a less principled person, I would probably pirate my music. I happen to believe in right and wrong, so I buy from iTunes so that the artist can at least get something, and I can have convenience.
But this plan is simply a way to get as much money from people as you can. It's ridiculous. I can't see how any consumer thinks this is a good thing.
Posted by klinux, 12 Feb 2007
Reacting to Apple
The problem with all these "iTunes killers", is that they are scrambling to react to Apple and salivating at the profits or panicking for lack of profits. The reason Apple will leak them, is that their R & D has always been usercentric. Phone companies all over the world, are the most egotistical , non inovative monopolies. That's why they love their namesakes, the music companies. They are like third world dictators. Paranoid and whenit comes to anyone near the throne, they then claime to be for the poor peasants.
Yawn, yawn ! The Last King of Scotland!
Posted by Sam Kawesa, 12 Feb 2007