Sky to take on iTunes with download service

by Darren Davidson, Brand Republic 22-Jul-08, 15:05

LONDON - Sky is to challenge the dominance of Apple's iTunes with the launch of a music download service and has already signed up Universal Music, whose artists include U2, Kanye West and Amy Winehouse, as launch partner.

The satellite broadcaster said other music industry partners, including independents as well as majors, will follow Universal Music, which also boasts the Killers, Snow Patrol, Rihanna, Eminem and Elton John among its stable of performers.

The new service will be available for a single monthly subscription that will allow customers to either stream songs on-demand for immediate listening or download tracks for playback at any time.

Sky will offer a range of subscription options and also enable customers to listen to songs on a wide range of devices. Downloaded tracks will work on any MP3-compatible fixed or portable device, including iPods, MP3 players and mobile phones.

The new service is scheduled to launch later this year and further details such as pricing and branding will be announced at a later date.

Mike Darcey, chief operating officer of BSkyB, said: "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' needs.

"We aim to offer an easy and affordable service for all UK music fans, while ensuring that artists are properly rewarded for their creativity."

The online music service will be operated by a new joint venture company, in which Sky will be the majority shareholder.

Sky suggested it will explore how it can attract traffic to the service from its current online portal and broadband access businesses.

As the first partner in the service, Universal Music will offer access to its entire catalogue, as well as becoming a shareholder in the venture.

Lucian Grainge, the chairman and chief executive of Universal Music Group International, said: "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."