Could iTunes have a new competitor to deal with? On the 19th October it has been rumoured that Sky will launch it's new content channel called Sky Songs. Sky Songs will be a direct digital downloading tool which will make well over 4 million songs available to anyone in the UK with a broadband connection. There are two monthly subscription options available, the first being a monthly £6.49 fee which will give you 1 £6.49 album download or 10 songs, with unlimited streaming of all tracks. The second option is £7.99 a month giving you a £7.99 album download or 15 songs, again with unlimited streaming of over 4 million songs.
As part of the release strategy Sky broadband customers will receive a free £6.49 download credit to use against any £6.49 album available.
The big question here is, are the likes of iTunes in trouble? Well, if Im honest, and you know I like to be, then no I don't think they are. Sky is a good few years behind the game here, and like many others are sure to fail in this space. The technology in the marketplace today, i.e the ipod, has the flexibility behind it to be able to write off any competitors if they become to close to what iTunes has achieved. Apple could start to offer additional content or services in formats unobtainable to Sky and for this reason it will prove very difficult for them to make a splash in the overly competitive market.
The second reason why Sky Songs could run into problems is due to the monthly subscription model they are looking to adopt. Why would a listener pay for the monthly service when they can pick and choose individual tracks at iTunes. If Sky's only USP here is the unlimited streaming that comes with the bundle, then they have overlooked the likes of Spotify and last.fm, two already firmly established music streaming platforms.
For Sky Songs to really have a go at the download market they will need to put a serious amount of budget behind marketing, partnerships and exclusivity deals. I highly doubt the Sky Songs pot is that deep. It is my prediction that a new download platform such as Sky Songs will bite the dust inside the first year. |