Spotify eyes up a Virgin

You may remember that a while back Virgin Media announced that they were setting up a DRM-free music download service, and said that they had Universal as its first partner, with others sure to join them. However it still hasn’t materialised, as negotiations with other record labels have stalled, so now Virgin have decided to change tack.

Their new plan is to snuggle up with music streaming service providers Spotify, and hopes that it will be able to use the contacts and good will the company has in the music download market in order to finally get the other major labels on board.

‘Virgin Media has built its own service and it's really good,’ said a Virgin Media source. ‘But it has yet to sign up any of the other major three record labels, so it can't launch for at least 12 to 18 months.

‘Warner and EMI are driving a tough deal, but Sony US management has really stuck its heels in and is not budging. The company do not like the idea of offering unlimited amounts of downloads for a monthly subscription fee.’

‘Spotify and Virgin Media are close to concluding a partnership deal,’ said a source from Spotify. ‘The finer details are not yet known, but Spotify will be offering new tools and content exclusively to Virgin customers as part of the arrangement.’

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