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October 14, 2010

Virgin Media and Spotify deal rumoured

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by Janet Harris

Neither Virgin Media nor Spotify are commenting on rumours of a partnership, but the invitation on Spotify.com to‘just help yourself to whatever you want’ would be a good fit with Virgin’s ambition to offer unlimited music downloads via the television.

Virgin Media announced plans for a subscription-based music-streaming service over a year ago, but its determination to offer unlimited downloads has proved a sticking point.

Although it reached a deal with Universal Music, other labels, especially Sony Music, were not in favour of throwing their catalogues wide open for a monthly subscription.

A partnership with Spotify is likely to be cheaper for Virgin than launching its own service, which would require licence agreements, and the end result for the viewer would be pretty much the same.

It is likely that Virgin would offer music downloads as part of a package, along with its established TV, broadband, and phone services.

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