CNet: With music services so reliant on mobile, bundling makes sense

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Issue Date: 
Jul 9 2013 - 12:20pm

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A CNet report says Beats Electronics is negotiating with AT&T to launch its music-streaming service Daisy bundled with mobile data plans.

The goal for Beats would be to build up a large audience in a very short time -- in a sense, to "catch up" on competitors like Spotify and Google. Key for AT&T is Beats' "well-established brand," says CNet. AT&T might see it as a worthy partner to drive phone and data sales plans.

Beats owns the online streaming service MOG now. The company says they'll differentiate their new service by making it more focused on "curation," that is, programming designed by musical experts.

CNet writes, "With mobile at the center of all music offerings now, partnering with a big carrier makes good sense. There is also precedent for successful tie-ins, although no big examples in the United States. Spotify, for instance, captured a huge chunk of the Swedish population when, in 2009, it tied up with telco Telia -- an example that music label execs point to as showing the potential of bundling with wireless carriers."

Read more in CNet here.

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