Universal, Sony BMG Support "Total Music" iTunes Competitor

Authored by Mark Hefflinger on October 12, 2007 - 9:49am.

Los Angeles - Major record label Universal Music Group is working on a label-owned iTunes Store competitor concept called Total Music, which would provide unlimited access to songs, paid for through a $90 fee added to the cost of portable players, BusinessWeek reports in its October issue.

Universal has already received support for the idea from fellow major label Sony BMG, and is in talks with Warner Music Group, the article states.

Universal is not happy with the revenue-sharing terms of its current deal with Apple, and recently decided to license its tracks on a month-to-month basis to the iTunes Store.

That allowed it to test the waters with other distributors, such as its five-month pilot release of DRM-free tracks through Wal-Mart, Google and Best Buy.

The proposed Total Music service would not charge subscribers directly for songs, but instead fold a $5 per month fee into the cost of portable players or cell phones that could access the service.

The $90-per-device figure comes from the assumption that consumers will upgrade their playback devices every 18 months or so.

 

Related Links:
http://tinyurl.com/2j75tj (Business Week)

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