Quantcast
Latest Stories

PLDT signs distribution deal with Universal Music

‘Game-changing’ accord seen to curb piracy

By

Philippine Long Distance Telephone Co. (PLDT) and the world’s biggest music publisher, Universal Music Group International, have sealed an exclusive “game-changing” deal that will allow PLDT’s mobile units Smart, Talk ‘N Text and Sun to distribute music content, officials announced Monday.

PLDT said the partnership opened up new business opportunities with a large and influential player in the global music industry. Through Smart Music, more than 70 million subscribers will have access to more than three million tracks under the Universal Music, via unit MCA Music Inc.,  which includes songs by popular artists Rihanna, Jay-Z and the Beatles.

For Universal Music, the deal makes sense as it allows the company to expand its business in the Philippines, which has nearly 100-percent mobile penetration rate, while cutting losses to piracy by offering an affordable and convenient alternative.

In line with this, Smart Music has pegged the rate at P15 to P20 a song, below rates of comparable online stores like iTunes of Apple Inc., which charges more than P40 a song. Moreover, Smart Music downloads can be charged against prepaid or postpaid billing, removing the need for a credit card, in the process enlarging its potential market.

Sandy Monteiro, president of Universal Music Group International in Southeast Asia, said the time was right given the maturity of the country’s telecommunications market, the level of smartphone penetration and PLDT’s rollout of high-speed Internet services.

He said the contract with PLDT was good for three years.

“The decision to give exclusive mobile rights of our assets to one telecommunications company is a giant step. In fact, this is the first time we have done anything like this in the world,” he said in a joint press briefing with PLDT officials.

“Smart Music is just the beginning of what will become a multi-front development of the PLDT’s multimedia strategy. In the coming months, you will see us grow our multimedia content offerings,” said Charles Lim, Smart’s head of consumer wireless business.

Both companies are looking at growth in the digital music market, which accounts for about half of industry revenues globally. For the Philippines alone, digital music accounts for 40 percent of the P700-million domestic music business.

Monteiro also noted that the deal extended beyond music distribution. He said Smart would handle promo tours with Universal Music’s artists as well as mobile merchandising rights.

“When any artist comes to the Philippines they will work, by choice, with Smart. Meet and greets only through Smart. Artist live-chats, fly-aways to Singapore and London, only through Smart,” he said.

It is because of these value-added aspects that Monteiro said he believed consumers could shift to legal music download platforms.

“We want to change the structure of the music market in the Philippines,” he said.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , Distribution deal , PLDT , smart , Sun , Talk ‘N Text , universal music



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • What Went Before: Malacañang allies alleged involvement in pork scam
  • Timeline: Napoles tell-all
  • 12 senators on Napoles ‘pork’ list, says Lacson
  • Napoles surgery in Makati hospital successful
  • Save the queen? Aide takes fall for Enrile, Gigi Reyes
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Visiting chefs from Denmark get creative with ‘ube,’ ‘ buko,’ ‘calamansi,’ mangoes
  • Salted baked potatoes
  • A first in a mall: Authentic Greek yogurt–made fresh in front of diners
  • Entertainment

  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • From prison to the peak of success
  • ‘Asedillo’ location thrives
  • Business

  • This time, BIR goes after florists
  • Philippine Airlines to stop shipment of shark fins
  • PH banks not ready for Asean integration
  • Stocks down on profit-taking
  • Banks allowed to use ‘cloud’
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Believe it or not: Filipinos love US more than Yanks
  • Marketplace