NeoMedia Technologies, Inc (NEOM)

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dd: Virgin launches new digital music service

Mark Oliver and agencies
F12.30pmriday September 2, 2005
http://www.guardian.co.uk/business/story/0,3604,1561641,00.html

Sir Richard Branson today appeared in London via a hologram recording beamed to his flagship store as he launched Virgin's new digital music download service in the UK.
The entrepreneur - who is currently at Necker Island, his Caribbean retreat - launched Virgin Digital UK just a few days ahead of HMV's rival service, which will go live on Monday.

Both HMV and Virgin want to win a slice of the booming digital market, currently dominated by Apple's iTunes. The high street retailers are offering services allowing music to be downloaded onto MP3 players but not Apple's iPod.


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A 3D image of Sir Richard was relayed to an audience at his Virgin Megastore in Oxford Street this morning, and his launch message said Virgin Digital would compete strongly against iTunes.
"We have always felt that a company with music at its core, rather than technology, could do so much better for music fans," the holographic Sir Richard said. "It is so user-friendly that even I could use it."

Like HMV, Virgin allows users to access music online from its vast "jukebox", either on a pay as you go or monthly subscription basis.

A £9.99 basic package allows users to download and listen to tracks from the company's catalogue of 1.2m songs on up to three computers. The £14.99 premium package also allows the tracks to be downloaded onto compatible MP3 players.

Buying a downloaded track from Virgin Digital will cost a fixed rate of 79p each on a pay as you go basis - the same price offered by iTunes and HMV.

Sir Richard said his firm's "strong music heritage" as a record label and a retailer would give it an edge. "Virgin has a huge advantage and a platform to launch a digital service that will become the ultimate destination to buy, stream, burn and enjoy the best the music world has to offer," he added.

Virgin Digital customers will get free music insurance, providing a back-up service to replace downloaded tracks if a computer's hard drive crashes. Both Virgin and HMV are attempting to offer more than just music, and the online services include an "encyclopaedia of additional facts and musical recommendations".

Customers will also have access to online radio stations and exclusive performances by artists in HMV and Virgin stores. Virgin subscribers get access to 60 free radio stations and an "ask the expert" back-up email service.

The Virgin service is a collaboration with the US digital music giant MusicNet, and help desks for digital music customers will be set up at all main stores.

John Taylor, the HMV e-commerce director, yesterday said iPod users had bought into a "walled garden" because they could not download music from rival sites. It was also reported yesterday that a mobile phone compatible with iTunes would be launched next week. The New York Times said the Apple-Motorola "iPhone" would be unveiled at a conference on Wednesday.