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Universal's partnership with Sky paves way for service offering MP3 downloads and unlimited music streaming
Universal believes that a bundled broadband plus music subscription package in the UK is an "inevitability", after signing a deal with Sky to launch an innovative subscription plus download music service.
The deal, announced last Tuesday, will see Sky and Universal throw their considerable weight behind the new, as-yet-unnamed service, which will offer consumers in the UK and Ireland unlimited access to streamed music from the Universal catalogue, as well as a fixed number of DRM- free MP3 downloads depending on the level of subscription.
Universal Music Group International senior vice president of digital Rob Wells is unequivocal in believing his company has an enduring model. He states, "Universal believes that subscription is the future of music consumption."
Wells adds, "Once you have tried digital subscription you will never go back. I will stand by that for the next five years."
Details of the service are scant, with no launch date or details of pricing, and Universal is so far the only music content provider to have signed up.
However, with album sales in the UK currently down around 7% year-on- year and digital revenue far from compensating the drop off in physical sales, news of the tie-up is creating considerable interest among the UK music industry.