GristyMcFisty used our news submit to tell us that Virgin has launched its own
online digital music store called Virgin Digital today which offers US consumers Napster style mix of per track downloads and all you can eat type monthly subscriptions. Virgin Digital is still in the beta stage with the reason for this most likely hanging on the fact that service is based around the Windows Media 10 beta release.
Unlike Apple's thinking of the online music store Virgin Digital believes that tethered (monthly fee) subscriptions are the future of online digital music downloads instead of pay per song service. Paying a monthly fee would allow users of the Virgin Digital service to download as many songs as they liked for a fixed monthly fee. Virgin Digital currently have the monthly price at 7 Dollars 99c compared to Napsters 9 Dollars 99c and includes an array of online music stations bundled with that price.
Virgin Digital has not made it clear yet that their service will allow transfers to portable music devices or even if you can burn the songs to cd at their current pricing. On Napster you have to pay a higher monthly charge if you want to transfer music to a portable device this fee comes to 14 Dollars 99c + 99c per track if you want to burn the music to cd.
Virgin Digital will be able to lead Napster because of its catalogue of 1 million tracks, Apple iTunes music store has already exceeded this amount which was announced last month. Another advantage that Virgin has is its brand name the Virgin brand is well known throughout the world and with in-store promotions as well as collaboration with other Virgin Group companies it is sure to make a strong impact.
It will be interesting to see what consumers prefer a fixed monthly
| Virgin's digital music service, Virgin Digital (VD), opened its Like Napster - and contrary to Apple's public thinking, and Microsoft's for that matter - Virgin clearly believes tethered subscriptions are the future of digital music, essentially allowing punters to download as many songs as they like for a regular, monthly fee. VD's pitch is price: .99 a month to Napster's .99. There are the usual array of online radio stations bundled. It's not clear from Virgin's press statement whether VD will provide transfers to portable players for that price, or whether the subscription includes CD burning rights. Napster charges extra for both facilities: .99 for Napster to Go, and 99c a track for burning. Certainly, from the announcement's wording, burning only appears to be bundled with the a la carte service.
Wherever it launches, Virgin's real strength is its brand. VD may appear too much if a 'me too' service for now, but with in-store promotion and the service's well-known name, it's in a position to make a strong entry into the market. "Virgin Digital will work collaboratively with other Virgin Group companies on cross-marketing and promotions in an effort to mutually extend the breadth, depth and knowledge of music available to customers," the company said. There's the vexed question of whether consumers will prefer pay-per-download offerings or subscriptions, but since VD offers both, it's not likely to be hindered by a shift in one direction or another. |
Full story over at The Register. Will be interesting to see how well the new Virgin Digital music service will do with the amount of competition its facing. Though virgin is a big group and owns music stores to internet companies so can sure make the most by promoting it through its various companies in the virgin group.
Source: The Register
