EMI To Launch Consumer Portal: Report; Spotify Launches
By Dianne See Morrison - Wed 08 Oct 2008 05:23 AM PST
EMI is planning to launch its own consumer-facing portal to market its artists’ music directly to fans online, reports FT.com. EMI.com will launch before Christmas, and will let users buy music and download it. It will offer both video and audio content, as well as “unique content.” Some parts of the site will also be free. The portal has apparently been “carefully monitored” by Guy Hands, head of PE group Terra Firma which bought the label for £2.4 billion last year with the record label keen on using the portal as a “learning lab” where people can discover new music. Will the site be able to compete with the likes of iTunes or MySpace in marketing directly to fans? The FT quotes an unnamed music industry exec who said, “Research has shown that when consumers are looking for music they want it all in one place. They want to buy Beyoncé when they are buying Rihanna. I am not quite sure what EMI will get for the money they have spent on it.” Staci adds: Sources familiar with the project tell us it is not meant to compete with EMI’s digital retailers like iTunes but to serve more as a test bed with free and paid content. It doesn’t seem to be stopping new retail relationships: EMI is one of the featured content providers in YouTube’s new e-commerce initiative.
In other music news, Sweden-based digital music streaming service Spotify has launched what’s being seen as a serious contender to iTunes. It’s signed on Universal Music Group, Sony (NYSE: SNE) BMG, EMI Music, Warner Music Group (NYSE: WMG), Merlin and The Orchard (NSDQ: ORCD) and has rolled out first in the UK, Germany, France, Italy, Spain, Finland, Norway and Sweden with more countries to follow later this year. The service, which was rumored to have recently raised €15.3 million (£11.95 million) from Nordic VC’s Northzone Venture Partners, offers users a choice of paid subscription service, a day pass, or an ad-funded version. Only the paid-for service has launched, with the ad-funded service available by invitation only (release).
Posted in: Companies, EMI, Entertainment, Music




