Sky brings Universal on board music download service

by Tristan O'Carroll, Media Week 22-Jul-08, 15:45

LONDON - Sky is to launch an online music service, forming a joint venture with Universal Music that will challenge Apple's iTunes, offering DRM-free tracks from artists such as U2 and Amy Winehouse.

Universal Music is the first label to confirm its participation in the service, which will be free of DRM controls, meaning users can transfer music to multiple devices. Universal is taking a minority equity stake in the venture, in which Sky will be the majority shareholder, with other labels being invited to take stakes, if they join the service.

For a single monthly subscription, users can access songs on an on-demand basis for immediate listening, or download tracks for playback at any time.

Sky claims that the ability to access both streamed tracks and downloads to own through one monthly subscription is a world first. The range of subscription options to be available has yet to be announced.

Downloaded tracks will work on any mp3-compatible fixed or portable device, including ipods, mp3 players and mobile phones.

Sky is in discussions with other music companies, both majors and independents, and expects to announce further partners soon.

Mike Darcey, chief operating officer at Sky, 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."

Sky expects to attract traffic to the service from its current online portal and broadband access businesses.