Universal Music pondering subscription-based download service

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By Stevie Smith Oct 16, 2007, 12:11 GMT

Current ‘unnamed source’ rumours circulating throughout the Internet are suggesting that Universal Music Group is immersed in negotiations with other major music labels concerning the possibility of launching an offensive against Apple’s iTunes Store through an online music subscription service of its own. Rumours suggest that Universal Music Group is preparing to launch Total Music, a new subscription-based music download service. Credit: Universal.

Rumours suggest that Universal Music Group is preparing to launch Total Music, a new subscription-based music download service. Credit: Universal.Specifically, Universal Music Group, the world’s biggest music company, is supposedly preparing to unleash the "Total Music" service as a way to address the lack of growth in the music industry (an apparent consequence of the iPod and iTunes Store), while also hoping it will bolster digital media revenue in the face of ever-reducing CD sales.The source has also outlined that Doug Morris, CEO of Universal, is in talks with the likes of Sony BMG and Warner Music Group – another two of the ‘big four’ – regarding Total Music. Morris has also reportedly met with Microsoft Corp. chairman Bill Gates in the last few weeks, though whether the two discussed Universal’s music subscription service in relationship to the Zune media player has not been confirmed.According to Reuters, the source outlines that Total Music will exist as a subscription service integrated directly into digital devices, which would allow Universal Music Group to duly forge exclusivity deals with hardware partners (such as Microsoft) or with various wireless phone companies.The service would likely place a Total Music icon on the screen of its host hardware device and allow users free access to a massive selection of musical content during an initial promotional period of between six months and a full year. Following the end of said promotion, Total Music users would then be expected to pay a set subscription fee, which execs suggest consumers would be willing to pay after experiencing the full service.As other music industry players seek ways to increase the exposure and reach of their products, Vivendi-owned Universal initially hinted during the recent summer at its plans to release its own service following a refusal to sign a new long-term contract with the iTunes Store – leaving it open to signing exclusive business partnerships with others.

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