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September 01, 2005
Virgin and HMV to launch download music service
Virgin and HMV are launching music download services, to compete in a market dominated by PC and software firms. Virgin is launching its service on Friday 2 September, while HMV’s rival HMV Digital service will be launched three days later.
Both services are based on a subscription model where users can listen to any music for a monthly fee. In contrast, users of Apple's iTunes service pay per track or album.
HMV and Virgin hope their brand names will attract older music lovers to use a download service. Both companies plan to charge £14.99 a month for access to their libraries of over a million tunes apiece.
As long as users keep up their subscription, they will be able to transfer their downloads onto a portable music player. If they stop paying, however, the music will become unuseable. To keep a tune permanently, users will have to pay an additional fee for each track or album.
Most individual tracks will be priced at 79 pence. However, HMV plans to allow record labels to price new artists at lower rates to attract interest.
HMV spokesman Gennaro Castaldo said: "I think in time the public will realise that there is a vast choice available to them". "The iPod has been so successful because it is a fashion item as much as anything else, but fashions tend to change in time."
Mr Castaldo said the move was the firm's way to allow people access to a new format for music.
Posted by at September 1, 2005 07:49 PM
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