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HMV Partners With Microsoft for New Music Service

HMV Partners With Microsoft for New Music Service

by , 5:10 AM EST, December 22nd, 2004

British music retailer HMV Group PLC will launch its own digital music downloading service in the second half of 2005 and will use Microsoft's Windows Media Audio technology, the company announced Wednesday. The Microsoft partnership means users of Apple's iPod will be locked out of using the HMV service to buy music files.

HMV said it would dump some US$19.1 million into the project. What it did not reveal is how big its music library will be or how much it will charge for each download. Apple's iTunes Music Store charges UK£0.79 for a single music file download in Great Britain.

HMV's announcement did not rule out a monthly subscription service, whereby people could download unlimited music files for a flat rate. Online music service Napster runs a similiar type service in the U.S. and Great Britain, charging £9.95 a month. The files become unusable once a customer terminates their monthly subscription account. Apple Computer does not operate a subscription-based service, opting to sell music cuts on an individual basis, as well as selling complete and partial albums.

The software and hardware needed to access HMV's new service will be available at the retailer's 200 stores across the country and its online shop, the company said.

The online music download business in Great Britain is growing almost monthly. In November, grocery store chain Tesco announced it would soon launch its own online music service. Services now available in the U.K. include, Apple's iTunes, Microsoft MSN, Virgin, and Napster, to name just a few.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Tiger Posts: 1018 Joined: 17 Jun 2003
Subject: Who?

Never heard of them. Probably never will again either.

Close Name:Guest
Subject: Can't blame them

Certainly can't blame them - Apple won't license their DRM. Microsoft is the only one who is willing to allow others to sell music online. Apple needs to wise up soon before they loose the market.

Close Name:Guest
Subject:

The big deal of the announcement is that they will discontinue to SELL iPods at all. That may set a precedent for others and that would be bad for Apple.

Close Name:mahuti -   TMO Staff Posts: 377 Joined: 09 Jan 2003
Subject: Dump

Quote
HMV said it would dump some US$19.1 million into the project.


Yeah, "dump" is the correct word here.

Close Name:Bookman Posts: 543 Joined: 22 Apr 2002
Subject:

HMV is huge in England, as is Virgin - music chains are big there and good too, not to be confused with Sam Goody, etc. Apple needs to continue to expand their base of allies here - HP and Pepsi are good, but a deal with Amazon would be better.

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject:

SJ has to be careful in his international dealings. He is a rock-star in States but he is not so cool in Europe, Middle-East and Asia.

IMHO: Apple should not ignore the subscription market. This is a viable market. The current value proposition and delivery mechanism are not so ideal. If Apple can come up with a palatable model, many guys would subscribe. Apple should complement the ala carte music download service with a music subscription/satellite radio service.

Btw, does HMV anything to do with AIDS?

Quote
Bookman wrote:
... HP and Pepsi ...
You forgot about Motorola and BMW.

Close Name:AlanAudio Posts: 23 Joined: 25 Nov 2004
Subject:

HMV have previously tried to get a music download service working with OD 2, but it failed.

Now they're trying Microsoft and sinking millions into something that nobody apart from Apple has made any money from.

Perhaps when they try a third time, they'll make a sensible choice.

Close Name:macjim Posts: 35 Joined: 23 May 2004
Subject: HMV = dog listening..

For those who haven't heard of them, HMV stands for His Master's Voice which is the slogan that was used with the painting of a dog ("Nipper") listening to the horn of a gramophone (originally painted with a cylinder phonograph, then modified to a disc machine) - in the US the same image was used by RCA Victor, I think. They have a big chain of big record shops sited in towns where you can find smaller better shops.

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