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Virgin Media UK Still Trying to Launch a Broadband Music Service with Spotify

Posted: 30th Jun, 2011 By: MarkJ
virgin media uk musicspotifyCable operator Virgin Media UK is reported, yet again, to have "all but signed" a new deal that could allow them to launch their own Spotify based music subscription and streaming service for broadband ISP customers. Mind you, it wouldn't be the first time.

Virgin originally planned to launch an "Unlimited", DRM-free and P2P (File Sharing) based music download and streaming service, with the help of Universal Music, back in 2009 (possible names: Music Fish or Music Unlimited). Sadly several major record labels including EMI, Sony Music and Warner Music have persistently scuttled their ambitions (here, here and here); usually due to concerns over price and functionality (Virgin has always sought to offer 'unlimited' downloads, which is a tough sell for Rights Holders).

As a result few were surprised when sources close to Spotify hinted last year (here) that Virgin Media was "close to concluding a partnership deal", which would have resulted in the ISP being able to launch its own solution based upon exclusive "new tools and content" from Spotify. After all, Spotify is already legal and established. Nine months on and today's Guardian report suggests that little has changed.

Virgin Media Statement (October 2010)

"Virgin Media is forging new ground in music and whilst we are currently in talks with numerous parties, we want to ensure that any service provides a truly compelling offering for both consumers and industry."

Spotify specialises in free and paid music streaming, which funds itself through a mix of advertising, premium package subscriptions and commission from direct downloads of individual tracks and albums. Virgin Media will need to go beyond what Spotify offers as otherwise consumers would see little reason to bother.

Today's report claims, much as we've heard many times before, that a deal is now agreed.. at least in principle. The language suggests that Virgin Media will launch something very special and after two years of waiting it would need to be. Meanwhile BT , TalkTalk , Orange and Sky Broadband (the Sky Songs service died last year) have also failed to launch or sustain their own music services.
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