BT looking to launch a new music player
BT is considering launching its own music service, putting it in direct competition with the likes of Apple’s iTunes and Spotify.
A BT spokesperson said, “We’re keen to launch a music service this year, but the business model has to make sense.”
He declined to comment on the nature of the product or its expected timescale, but said: “We have offered to set aside our margins to get this off the ground but much will depend on how eager the music industry is to work with us.”
BT’s music player, likely to be an unlimited streaming service for subscribers or a download store like iTunes, has been in the pipeline for more than a year but the company has struggled to tie down a deal with the major record labels.
The telecoms group was tight-lipped about which potential industry partners it has approached or is in talks with.
If BT’s plans come to fruition, the group will join a host of telecoms companies that offer special deals with music streaming services.
In November 2007 Vodafone announced a partnership with Omniphone’s MusicStation and towards the end of last year both Virgin Media and Orange launched music streaming deals.
Virgin offers six months of free access to Spotify Premium for some of its broadband customers, while Orange offers free membership to Deezer for customers on its premium two-year service plan.
But Sky’s attempt to penetrate the music market was less successful, with the broadcast giant’s Sky Songs lasting just over a year before closing in December 2010 due to lack of demand.
Music streaming services and their telecoms tie-ups
Spotify
Launched: April 2006
Number of tracks: 15m+
Number of paying users: 3m
Cost per month: £9.99 for premium
Deal with Virgin Media
Launched: November 2011
Deal: Six months of free access to Spotify premium for some of Virgin’s broadband customers
Deezer
Launched: October 2008
Number of tracks: 13m
Number of paying users: 1.2m
Cost per month: £9.99 for premium+
Deal with Orange
Launched: September 2011
Deal: Free access to Deezer on Orange’s premium two-year service plan (which costs £25 to £80 a month)
MusicStation
Launched: June 2007
Deal with Vodafone
Launched: November 2007
Deal: £1.99 a week
Apple iTunes
Launched: January 2001
Cost: free
Sky Songs
Launched:
October 2009
Number of tracks: 5m
Cost: £4.99 a month
Closed: December 2010
“We just didn’t see the
consumer demand we’d hoped for.”