BSkyB and Universal prep for download store launch

BSkyB and Universal are moving nearer to the launch of their joint music streaming and download service, with talks underway with the remaining major labels and a number of independents, Sky confirms. The news comes amid new reports over the price structure and corporate branding for the stand-alone subscription-based music service.

A report by tech news site The Register claims that the new venture, which was first announced last July, will be called Sky Songs, with GBP4.99 (USD7.95) and GBP11.99( USD19.11) subscription price points set aside for five and 20 track-downloads per-month.

While Sky confirms the subscription service will include unlimited music streams and the entitlement of a certain number of DRM-free download-to-own tracks, a spokesperson dismissed the price reports as false speculation, claiming branding packaging and pricing would be announced closer to the launch.

Sky did confirm to StrategyEye that the service will be browser-based and ISP-agnostic, and will not be offered purely to Sky customers on-top of the company's existing TV, phone and internet packages.

Speaking last year about the hybrid download and streaming service, BSkyB COO Mike Darcey said: "We think that there is a considerable unmet and untapped demand in the digital music market. There is a desire among consumers to consume, discover and purchase music online."

Darcey claimed that the new service could compete with iTunes' per-song download model, with a wider target market: "Sky is trying to be the first music service targeted at families. They have relationships with households, while offerings such as Apple have been more about young, tech-savvy one-to-one relationships."

Reports emerged in February this year claiming that Sky had signed a deal with music service provider Omnifone to provide technology service. At the time it was said that the firm – which provides technology to offer music through home entertainment systems and set-top boxes – would also provide Sky with pre-arranged licensing deals with all four major record labels.

Speaking to StrategyEye this week, Sky confirmed that Omnifone will now be used "for some of the back-end infrastructure" and "delivery mechanism", they had no involvement in commercial negotiations with the labels.

Talks with the three remaining major labels and a number of independents are ongoing, with no deals yet announced. Though no launch date has yet been set for the launch, reports from February this year cited spring 2009 as a possible release date.