UK ISP Sky to Launch Music Streaming Service

The music streaming market is about to get even more crowded, at least in the UK, despite very few services making any actual revenue and the ones that are can hardly be called successful. This isn't stopping UK ISP Sky from launching Sky Songs a subscription-based music streaming service to compete with the likes of Spotify. There will be no free streaming service but there will be some MP3 downloads bundled with the monthly subscriptions, a la Napster.

“Our music partners bring an outstanding catalogue and unrivalled expertise that complements Sky’s strengths in content distribution. Sky Songs will reach out to consumers who want legitimate digital services offering choice, ease of use and great value. Offering legal access to digital music is a vital step in combating illegal downloading,” Sky CEO Mike Darcey said.

Announced more than a year ago, the service is finally close to being launched but the online music market has changed significantly since then. Free ad-supported services like Spotify are now very popular and all of the major music download services like iTunes or the Amazon store offer their songs in the DRM-free MP3 format, one of the initial selling points of the Sky service.

There will be just two pricing tiers offered initially, both including unlimited streaming. The cheapest version will set users back £6.49 per month and will allow them to download 10 songs per month or one £6.49 album. The second option will go for £7.99 per month and offer users the possibility to download 15 songs every month or one £7.99 album. Users can also download additional tracks for 65p or £6.49 per album.

The new service has support from all of the four major music labels plus that of several indie labels and distributors. Virgin, a competing UK ISP, is on its way to launching its own streaming service but plans to offer an unlimited downloads option. The initial plans have apparently been derailed by the refusal of Sony Music and it looks like users will have to settle for 40 downloads per month for £15.