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Tag Archive: subscription

Sky Offers New Music Service

Sky Offers New Music Service

BSkyB – or Sky, as it’s generally known – rules the satellite TV market in the UK, and has begun to wade into broadband. Now it’s planning to start a subscription Internet music service this year, using tracks from the massive Universal catalogue.

Although neither date nor pricing have been set yet, according to the BBC, the tracks, which will be streamed for a flat fee that also allows for a certain number of monthly downloads, will be DRM-free, and so can be played on any device.

Sky had also said that other music business partners might join.

WSJ: Microsoft Ends Talks with Music Labels

The Wall Street Journal is reporting (registration required) that Microsoft has ceased negotiations with the "Big Four" global music companies, calling into question the software giant’s plans to roll out a music subscription service as part of MSN Music.

According to the paper, discussions broke down Friday over royalty rates: reportedly, labels were demanding fees of $6 to $8 per user, per month. In the past, industry sources have indicated fees at that level are roughly equivalent to those being paid to music labels by other music subscription services (such as Yahoo Music, Rhapsody, and Napster); however, the same sources indicate none of the music subscription services currently have sufficient margins on music sales to generate significant revenue for their operators.

Best Buy’s Magazine Scam

The Mercury News has a great question and answer column regarding the free magazine subscribtions that Best Buy is giving away at their stores. And by the sounds of it, the clerks have not been properly trained and reportedly are telling customers that a card will come to them in the mail asking if they would like to renew their magazine subscription.

The Truth: When your free 8 week subscription is up (only 2 issues), you will automatically get billed for the magazines subscription. How do they get your credit card information? Why, with the purchase you just made at Best Buy. Looks like the company’s hands are getting a little dirty…

Consumers Not Receptive to Music Services

Respondents in the recent Parks Associates survey Global Digital Living strongly favored the single-track purchase model over a subscription when presented with both options. Roughly 40% said they were likely to buy songs one at a time, but only 8% were likely to use a subscription service.

“The market has a long way to go in promoting subscription models,” said John Barrett, director of research at Parks Associates. “There is hope Microsoft’s Janus technology will boost the digital music market by enabling portability and greater integration of hardware and content. However, our data show the industry needs to translate these solutions into something more tangible and desirable to consumers. At present, consumers either do not fully grasp the value of a subscription ‘all-you-can-eat’ service, or they simply don’t want it.”

Infinium Labs Sets Launch Date For Phantom

At the start of E3, the annual video game industry trade show in Los Angeles, Sarasota, Florida-based Infinium said its hardware would be free with a two-year subscription to its service or $199 without the subscription.

Infinium executives hope that finally taking the wraps off the Phantom, and demonstrating a functional version of the service, would dispel doubts among some industry observers that the company can deliver on its planned offering.

Read the full story at Yahoo! News.

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