Nov. 16, 2006

Canadian network operator Telus Mobility is adding a subscription-based offering to its full-track mobile music service.

The carrier launched an all-you-can-eat service allowing users to browse songs and receive unlimited downloads for $20 a month.

The offering compliments Telus’ 7-month-old service that sells over-the-air mobile music downloads for as much as $4 each.

Musiwave, a subsidiary of Openwave Systems Inc., powers the mobile music storefront, while European software developer SDC was tapped to provide digital rights management technology.

The new offering “makes it even simpler for clients to choose from hundreds of thousands of hot new tracks from the biggest music labels in the world,” said Robert Blumenthal, Telus’ senior vice president of products and services.

“We have seen enormous success with Telus Mobile Music as a pay-per-use service.”

While Apple Computer Inc.’s iTunes and other digital music services have gained ground with a pay-per-song model, it’s unclear whether consumers will warm to “renting” songs for a monthly fee instead of buying them.

But a subscription-based model such as Telus’ effort may allow carriers to mitigate the razor-thin margins of digital download sales as they create stickiness with music lovers.

Cingular Wireless L.L.C. launched a similar music subscription service earlier this month through a partnership with several online music vendors including Napster and Yahoo Music.

Source: RCR News