Virgin Media and Spotify set for tie-up

Move sees end of Virgin's own streaming service ambitions

Sources claim deal is near after Virgin failed to convince major labels on its own package.

Virgin Media and Spotify look set to ink a deal which will see the music streaming service bundled with the ISP’s broadband offerings. The tie-up, revealed today by The Daily Telegraph, will bring an end to Virgin’s own plans for a streaming and unlimited download service.

Virgin had announced its intentions to create its own package in June 2009, touting a deal with Universal. However, other record labels refused to play ball because of the service’s reliance on unlimited downloads.

A ‘senior music figure’ told the Telegraph, “Warner and EMI are driving a tough deal, but Sony US management has really stuck its heels in and is not budging. The company do not like the idea of offering unlimited amounts of downloads for a monthly subscription fee.”

Meanwhile, ‘a source close to Spotify’ said, “Spotify and Virgin Media are close to concluding a partnership deal. The finer details are not yet known, but Spotify will be offering new tools and content exclusively to Virgin customers as part of the arrangement.”

The suggestion is that Virgin is still looking to offer its own service in a couple of years and will use a deal with Spotify to entice new punters in the meantime. Would this tempt you to join Virgin Media? Or are you happy stumping up for Spotify and broadband separately? Let us know on Facebook and Twitter now.

Via The Telegraph