Verizon Unveils Wireless Music Service, Challenges iTunes and Sprint

Strategic Insights -

Verizon Wireless has launched V Cast, a new service that allows customers to download music to their mobile phones wirelessly, as well as transfer songs to PCs. The move is part of the company's bid to gain a foothold in the digital music market, which has been dominated by Apple's iPod and iTunes service. Verizon's V Cast offers a 1 million song music library and will let users pay a flat monthly fee for unlimited downloads, a move that could give them an edge over rivals Cingular and Sprint Nextel.

Key Takeaways:

  • Verizon Wireless has launched V Cast, a wireless music service that allows customers to download music to their mobile phones and transfer songs to PCs.
  • The service offers a 1 million song music library and will let users pay a flat monthly fee for unlimited downloads.
  • V Cast is Verizon's bid to gain a foothold in the digital music market, which has been dominated by Apple's iPod and iTunes service.
  • The company has partnered with Microsoft to provide the V Cast service.
  • Verizon's pricing strategy includes charging customers $1.99 per song purchased via mobile phones, with a two-song copy provided for a mobile device and a PC.
  • Music purchased via PCs will cost Verizon customers 99 cents, the same as Apple's iTunes.
  • Verizon is taking a flexible approach to music downloads, allowing users to choose between immediate satisfaction and lower prices for users who wait to download music on their PCs.
  • Analysts believe that Verizon's approach is competitive with iTunes, and may attract more consumers to the mobile music market.

Statistics:

  • Verizon Wireless has 49.2 million customers, making it the nation's No. 2 wireless firm.
  • Sprint Nextel charges customers $2.50 for songs downloaded to mobile phones, while Verizon will charge $1.99 per song purchased via mobile phones.
  • Music purchased via PCs will cost Verizon customers 99 cents, the same as Apple's iTunes.
  • V Cast offers a 1 million song music library, compared to Sprint's 300,000 song library through its partner Groove Mobile.
  • The market for music downloads and streaming services is growing rapidly, with many companies vying for position.

Sources:

  • [REINHARDT KRAUSE, "Verizon Unveils Wireless Music Service to Challenge iTunes, Sprint", USA Today, Verizon communications]
  • [Patrick Seitz, contributing staff writer]