HP, the largest computer maker in the world, is set to take on Apple in the digital music sector after signing a deal to embed UK company Omnifone’s MusicStation in its PCs. Apple’s iTunes store is by far the world’s largest digital music service and accounts for the lion’s share of digital music sales, which totalled $4.2 billion in 2009. However, the move by HP to muscle in on the digital music market could provide stiff competition for Apple, given it has a share of nearly 20 per cent of the global PC market and ships 48 million computers a year.
Rob Lewis, chief executive of Omnifone, said that computer manufacturers increasingly need to differentiate themselves and that the increasing popularity of digital music provides an opportunity to appeal directly to consumers. “Consumer electronics companies are realising that what the device does when you turn it on is as big a selling point as the spec of the product,” Mr Lewis said.
To date, Omnifone has concentrated on offering digital music services to the mobile market via deals with the likes of Vodafone and Sony Ericsson who offer customers MusicStation through their portal. The deal with HP is the first that Omnifone, which operates out of Island Records’ old studios in Chiswick, West London, has struck with a major consumer electronics company.
Mr Lewis said that HP is not just launching a “me too” product against iTunes, as MusicStation is more than just a storefront that allows users to buy music. MusicStation is a subscription-based service that allows users to download an unlimited amount of music and the ability to share playlists.
At launch, MusicStation users will have a choice of 6.5 million tracks to choose from. Subscribers can listen to the music they have downloaded on all their compatible devices, offline as well as online, but will not be able to access the music if they decide to close their account. However, as part of the package, users will receive 10 songs per month free of software tying it to the service, meaning they can transfer those tunes to any device they like.
Mr Lewis added that HP has the clout to rival Apple in the digital music market. “There is an opportunity to create a real competitor to the dominant player in the market,” he said. Apple is already facing competition from Amazon in the digital music market after the online retailer launched its download service on mobile phones that use Google’s Android operating system.
It will cost UK users £8.99 a month to use HP’s MusicStation service, although they will receive a two-week free trial period. It will be available immediately to people buying a new HP or Compaq computer in 10 countries.
If HP succeeds in tempting computer users to subscribe to MusicStation, it could also benefit the music industry’s attempts to reduce illegal filesharing.
Rob Wells, Universal Music’s head of digital, said: “With its huge scale and user base, HP’s 10 country introduction of Omnifone’s MusicStation unlimited music service for the PC will help encourage legitimate access to digital music content from Universal Music and all the other major and independent labels.”
source: technology.timesonline.co.uk
