27th Nov 2006 07:02
UBC Media Group PLC27 November 2006 27 November 2006 UBC Media Plc UBC Announces Commercial Launch of Digital Radio Music Downloading Service • Digital Music Download commercial service to go live in London in Q1 2007, with full national launch in May 2007 • Agreement in principal reached to launch with key radio groups in all major radio markets • Deals agreed with major record companies, Universal Music Group, Warner Music and EMI • Terms being finalized with Virgin Mobile as customer service and billing partner UBC media (UBC: LN) is pleased to announce that it has reached agreements withradio companies, record companies and mobile operators which mean that it cantoday announce the launch timetable for its ground breaking technology whichallows real-time downloads of tracks from radio stations as the listener hearsthem. The music files are delivered both to the digital receiver and the user'shome internet account. The technology, known as Digital Music Downloading (DMD), was first unveiled byUBC last year. In August, the company announced the successful completion ofconsumer trials in Birmingham with Chrysalis-owned radio station Heart 100.7. UBC can now confirm that the commercial service will commence in Q1 2007 with asoft launch in London and will go live nationally in May 2007 with at least fourradio stations in each major radio market being enabled to offer the service totheir listeners. UBC is pleased to announce that it has reached in principalagreement with the major UK radio groups and now expects, subject to contracts,the following services to be DMD enabled by May 2007: Heart and one other music service yet to be determined from Chrysalis Radio;Smash Hits and The Hits from EMAP;Smooth from Guardian Media Group;Classic Gold Digital, which UBC jointly owns with GCap. The initial station line-up is limited by the current availability of datacapacity to carry the music files on digital radio multiplexes. However, today,UBC is also announcing a development to the software that will make the serviceavailable on more radio stations than was originally envisaged. This newversion of the application will allow exactly the same impulse purchase of songsas they are played but with the music file only being delivered to the user'shome internet account rather than also to the radio itself. This requiresminimal digital radio data capacity and it is therefore possible for it to beenabled on a far wider number of stations. The technology also operates intandem with 3G telecom networks to allow users to choose this method of deliveryfor the files to mobile devices. UBC expects to announce further radio stations that will enable DMD in the coming weeks. The agreement of the record industry is crucial to a successful commerciallaunch. UBC has also now finalized commercial terms with Universal Music Group,Warner Music and EMI on copyright payments for music recordings that will besold in the UK by radio stations using DMD technology as well as reachingagreement with MCPS who represent the music publishers. Since the announcement of UBC's successful trial in September, discussions havecommenced with a number of manufacturers about digital radio devices that willbe capable of operating the service. UBC believes a range of these will beavailable during 2007. The 'Lobster 700 TV', launched in October by Virgin Mobile is the first suchdevice and UBC is finalizing commercial terms with Virgin for billing andcustomer service. The software, developed for UBC by TTP, which will operatethe service on the Lobster mobile, will be released in January 2007. UBC willbe demonstrating the service on the Lobster phone at its analyst meeting at theLondon Stock Exchange this morning. Simon Cole, Chief Executive officer of UBC Media commented: "We are now in a position where the pieces of the DMD jigsaw are in place. Weknow there is a demand for DMD, our trial this summer demonstrated this, thelogistics of delivery are almost finalized, and I am delighted that we have nowgot every key player in the radio and music industry on board to ensure thesuccessful launch of the service next year. This is digital radio's killerapplication." Ends For more information or to arrange an interview Diane Barnes or Katie ThompsonPortland, for UBC Media Group020 7404 [email protected] / [email protected] Notes to editors: About DMD UBC's technology division, Unique Interactive, has developed the DMD technologyto allow listeners to purchase tracks instantly, as they are broadcast bydigital radio stations, and to download them to mobile devices, such as digitalradio enabled mobile phones that will begin to appear later this year. DMD broadcasts encoded and encrypted music files, alongside a radio station'saudio stream. These are loaded into cache memory in the mobile device and can bebought and played immediately. In addition, the track would also besimultaneously downloaded to a web-based music library compatible with popularmusic player applications. Consumers will register to receive the service and top-up the amount of creditthey have for music downloads in the same way as they would top-up a pre-paymobile. Customers will not need to keep a separate pre-pay account for musicdownloads - purchases can come straight off their mobile pre-pay account oradded to their contract bill. They can then download tracks as they hear themwith the cost directly debited from their account. The download cost is expectedto be in the region of £1.25 per track. The DMD project has brought together a group of companies at the leading edge oftechnology - Unique Interactive, 7 Digital, Arqiva, Chrysalis, Mi-Pay, MXR,Switchdigital (London), TTP and Virgin Mobile. DMD is also supported by all fourmajor record companies, the PPL and the MCPS. About UBC Media Group plc UBC is quoted on the London Stock Exchange's AIM market. The Group is the marketleader in the supply of audio content and broadcast data software to the radioindustry in the UK. In addition to the entertainment, traffic & travel andnational news services provided to commercial radio, the Group is the largestindependent producer of radio programming for the BBC and the UK's leadingsupplier of digital radio scrolling text and EPG software. The Group also hassignificant digital radio broadcasting interests including Classic Gold Digital,the nationally distributed classic hits format. It is also part of the MXRRegional Multiplex consortium. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
7DIG.L