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Ward said the company is considering undercutting the standard 99-cent-per-song model that has online stores keeping only about four cents of every download sale.
Friday, December 5, 2003

VIRGIN ENTERS DOWNLOAD MARKET

Retailer Set to Roll Out Online Store, May Undercut 99-Cent Barrier

Here comes another online download store.

Retailer Virgin Entertainment will jump into the crowded digital music market.

The company’s chief exec Glen Ward made the announcement at the grand re-opening of a Virgin Megastore in S.F. this Wednesday, saying the online music service would launch early next year.

Almost every major media and technology company has announced digital music services after seeing the popularity of both illegal networks such as KaZaA and pay sites like Apple's iTunes. The field now includes Roxio's re-launched Napster 2.0, BuyMusic and MusicNow, while Microsoft, AOL and Wal-Mart are all planning competitors. Dell and HP have partnered with online sites, as has Best Buy.

Ward said the company is considering undercutting the standard 99-cent-per-song model that has online stores keeping only about four cents of every download sale.

Other companies have relied on their online download stores to sell hardware. Apple uses iTunes to drive sales of its iPod MP3 player, while Roxio sells CD burners through Napster.

 
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