'Labels doubt Virgin unlimited music download model - report'
Sep 10, 2009 (DMEUROPE via COMTEX) --
Companies: Virgin Media Inc (VMED), Warner Music Group Corp (WMG)
Virgin Media's plans to launch a subscription-based unlimited music download service in the UK are under threat as Sony Music and EMI appear reluctant to sign up for the service, reports New Media Age (NMA). Unnamed insiders at Sony Music and EMI told NMA that they have concerns about the unlimited business model proposed by Virgin. They are understood to be worried that it is fundamentally flawed and will cannibalise existing digital music sales instead of converting illegal filesharers into paying customers. Virgin unveiled the plans in June along with Universal Music. Talks are also being to be ongoing with Warner Music, and sources believe that Virgin would be unwilling to proceed with the launch without the support of all four major labels. A Virgin spokesperson told NMA that it remained committed to the launch and was on track to launch a comprehensive service by Christmas.
Distributed for DMeurope.com via M2 Communications (www.m2.com)
Copyright (C) 2009 DMeurope.com. All rights reserved
News Provided by COMTEX
Companies: Virgin Media Inc (VMED), Warner Music Group Corp (WMG)
Related terms: business, music, sales, subscription, track
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