Virgin Media (Nasdaq:VMED) and Universal Music today unveiled plans for a ground-breaking digital music service designed to bring about a rapid and permanent change in the way UK consumers buy and listen to music.
The service -- a world first -- will enable any Virgin Media broadband customer to both stream and download as many music tracks and albums as they want from Universal Music's entire catalog, in return for a great-value monthly subscription fee. Downloaded music will be theirs to keep permanently and to store on any MP3 compatible device. An "entry level" offer will also be available for customers who download music regularly, but may not want an unlimited service.
The service is intended to launch later this year. Virgin Media is negotiating with other UK major and independent music labels and publishers to ensure it can offer a complete, compelling catalog by the time it launches.
The new service reflects the shared commitment of Virgin Media and Universal Music to keep step with growing demand for online music in an increasingly digital world. In parallel, the two companies will be working together to protect Universal Music's intellectual property and drive a material reduction in the unauthorized distribution of its repertoire across Virgin Media's network.
This will involve implementing a range of different strategies to educate file sharers about online piracy and to raise awareness of legal alternatives. They include, as a last resort for persistent offenders, a temporary suspension of internet access. No customers will be permanently disconnected and the process will not depend on network monitoring or interception of customer traffic by Virgin Media.
Commenting on the new service, Virgin Media's CEO, Neil Berkett, said, "In terms of both convenience and value, our new music service will be superior to anything that's available online today and provides a fair deal for both consumers and artists. There is no better example of Virgin Media's commitment to harnessing digital technology to give customers what they want, when they want and how they want."
Lucian Grainge, Chairman and Chief Executive of Universal Music Group International, said, "Britain has a world-class reputation for artists and music. Now British consumers will have access to a world-class digital music service. I believe this puts all of us at the forefront of a new era."
About Virgin Media
With almost 10 million customers, Virgin Media is the UK's first quad-play provider of broadband, TV, phone and mobile. The company is the largest residential broadband provider in the UK, using a unique fibre optic cable network to deliver next generation ultrafast internet access of up to 50Mb to just over half of all homes. Combined with a high speed ADSL service and mobile broadband products, Virgin Media is able to offer broadband internet access to virtually the entire country.
Virgin Media has the UK's most advanced TV on demand service and is the only TV platform to carry BBC iPlayer. It is the second largest provider of pay TV, was the first to launch a high definition TV service and offers a high-specification, HD-ready V+ personal video recorder. The company operates the most popular virtual mobile network in the UK which, when launched, was the world's first such mobile phone service. It is also one of the largest fixed-line home phone providers in the country.
Virgin Media also owns Virgin Media Television (VMtv) which runs eight entertainment channels, including Virgin1, Living, Bravo and Challenge. VMtv is a 50 per cent joint partner with BBC Worldwide in UKTV, which consists of ten channels including Dave, G.O.L.D., Watch and Alibi.
With operations based entirely in the UK, Virgin Media Inc. is listed on the NASDAQ Stock Market (VMED). For more information, go to www.virginmedia.com.
About Universal Music Group
Universal Music Group is the world's leading music company with wholly owned record operations or licensees in 77 countries. Its businesses also include Universal Music Publishing Group, the industry's leading global music publishing operation.
Universal Music Group's record labels include A&M/Octone, Decca, Deutsche Grammophon, Disa, Emarcy, Fonovisa, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, Machete Music, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records, Universal Motown Republic Group, Universal Music Latino, Universal Records South, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalog of music in the industry, which includes the last 100 years of the world's most popular artists and their recordings. UMG's catalog is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, its new media and technologies division; Bravado, its merchandising company; Twenty-First Artists, its full service management division; and Helter Skelter, its live music agency.