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June 15, 2005

Ericsson, Napster to Launch Music Service


Business

Swedish Wireless equipment maker LM Ericsson and online music distributor Napster Inc. will offer a digital music service that will let consumers download music to mobile phones.

The announcement came as wireless providers and device makers rush to deliver music, video and ringtones to mobile phones, viewed by many as the next medium of choice for entertainment reports WP.

Motorola Inc. plans to launch a cell phone that can buy and play songs from Apple Computer Inc.'s iTunes. It was supposed to have been unveiled in March, but was postponed at the last minute, fueling speculation that a wireless service provider had become involved


"Ericsson and Napster are uniquely suited to offer mobile operators a simple, cohesive and personalized digital music experience for their consumers," Napster chairman and CEO Chris Gorog said in a news release

Napster boasts over 1 million song titles, according to its Web site. Today, these can be downloaded to PCs over fixed-line Internet connections for a basic subscription fee of $9.95 per month, or $0.99 per song.

The service is set to go live in Europe in the next 12 months and will initially be offered to operators in selected markets in Europe, Asia, Latin America, and North America.

Napster and Ericsson said that their business model "accommodates mobile operator participation in all revenue streams."

Yesterday, Sprint announced a deal with Sirius to deliver satellite radio music channels to its Sprint PCS Vision customers.







 

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