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Sony, Record Labels Launch Music Streaming Service to Rival iTunes

Strategic Insights

— 1 min read

Sony Corp. and the major record labels are embarking on a bold new strategy to challenge Apple Inc.'s dominance in the music industry. After years of allowing startups to license their artists, the industry leaders are launching their own music streaming service, "Music Unlimited powered by Qriocity," which debuted in the UK and Ireland in December and has now expanded to France, Germany, Italy, and Spain. This service offers access to over six million songs, allowing Sony Music Entertainment and its partners to control revenue and bypass middlemen. The move is a direct challenge to Apple's iTunes, which has been the largest destination for buying music in the US since its introduction in 2001.

Key Takeaways:

  • Sony's music streaming service, Music Unlimited, has over six million songs in its catalog.
  • The service will be available on a range of devices, including Sony's PlayStation 3 game console, Blu-ray disc player, Bravia televisions, personal computers, and Android-based smartphones.
  • Music Unlimited allows users to pay to access songs and add them to their personal libraries, similar to iTunes.
  • However, unlike iTunes, Music Unlimited is a streaming service that requires users to be connected to an online device.
  • The service will compete with existing streaming and download services like Spotify, which offers a free ad-supported option.
  • Sony's Music Unlimited aims to target the 85-90% of consumers who have not yet used digital music services.
  • The service will use technology from Gracenote Inc. to recommend music to users based on their tastes and listening habits.
  • Sony's connected devices in the market are expected to reach 350 million in the next few years.

Statistics:

  • Music Unlimited has over six million songs in its catalog.
  • Sony's iTunes competitor has launched in several European countries, including the UK, Ireland, France, Germany, Italy, and Spain.
  • iTunes has reported over 10 billion songs downloaded since its introduction in 2001.
  • The music industry has struggled to find alternatives to combat declining CD sales and rampant piracy.
  • Sony's Music Unlimited will require a payment to access songs, unlike some streaming services that offer free ad-supported options.

Sources:

  • Bloomberg News
  • Sony Corp.
  • Universal Music Group
  • EMI Music
  • Warner Music Group
  • Google Inc.
  • Sony Network Entertainment
  • Timothy Schaaff, CEO of Sony Network Entertainment
  • Gracenote Inc.
  • 2011 Toronto Star.

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