updated 01:10 pm EDT, Wed July 6, 2011
Will charge for streamed misic as part of a bundle
Virgin Media has signed a deal with Spotify to add streaming music to its cable content offering in the UK. Virgin's subscribers will be able to buy a bundle which includes access to Spotify's 13 million tracks. Although Spotify does offer a free, ad-supported streaming service, Virgin's subscribers will have to pay a subscription for their songs.
Virgin sees adding Spotify's library to its offering as a way to build up its cable business. The company currently has four million subscribers. For Spotify, it is another step to build market awareness and credibility as it postures itself to attack the US market and go head-to-head with iTunes and Zune.
Virgin did not give details of its bundled pricing for Spotify, only that it would be less than a subscription for Spotify alone. Spotify currently has a three-tiered pricing model. It offers a free advertiser-supported service, a £5 ($8 USD) monthly service with unlimited access to its library on the web, and a £10 ($16 USD) Premium service, which provides access to its music by mobile phone. About 85 percent of its customer base uses the free service. [via The Financial Times]