Can't get music labels to sign up to its own service

Virgin to partner with Spotify, claims report

British cable broadband ISP Virgin Media is to partner with music streaming service Spotify after the firm failed to get its own music download service off the ground.

Virgin had announced plans for an unlimited music download service last year however out of the big four major music labels, the company only succeeded in signing up Universal according to a report in the Daily Telegraph.

While Virgin’s long term music download plans haven’t been completely shelved, the Telegraph sited a source “close to Spotify” that revealed that the two companies were close to a partnership deal. Such a service would see Virgin gain an important music offering while negotiations continue with record labels to launch its own service.

The Digital Britain report criticised ISPs and music labels for not offering attractive music services which would provide an alternative to illegal music filesharing. Virgin and Sky have announced music services but Sky has has launched one as yet with the Sky Songs monthly subscription service. 

The Telegraph said that the promise of ‘unlimited downloads’ on Virgin’s service was a negotiation sticking point with the major music labels. Meanwhile Spotify is set to offer exclusive ‘tools and content’ for Virgin customers as part of the deal.

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