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Can Sony be a prime player in mobile music?

Tech giant Sony has announced that it will roll out its Music Unlimited service to Apple devices in 2012, proving that it wants a piece of the mobile music pie. But with the swarm of music streaming services already on the market, can Sony compete with the big dogs?

The Music Unlimited Service will be available as an application for both iPhone and iPad devices early this year and will go head-to-head with other Apple mobile music services including iTunes, Spotify, Pandora and Myxer. Previously, Sony Music Unlimited was only available on desktops, Android devices and Sony products.

?I think the challenge for Sony will be convincing iTunes users to add another service because they are not going to abandon a collection they have spent a lot of money building,? said Daniel Ashdown, research analyst at Juniper Research, Hampshire, Britain.

?But this is a common challenge for all streaming services ? how to get consumers out of the mind-set that their music collection is on their device,? he said.

Stream on
Sony?s Music Unlimited service gives users unlimited music access to 10 million songs across multiple platforms, including mobile, desktop and game consoles.

To transfer music, users can store their collections in the cloud to stream across multiple devices, pointing to how consumers are becoming more comfortable with storing information to be streamed across channels.

The subscription service comes in two monthly pay models ? either a basic service for $4 or a premium account for $10 that includes personalized playlists, unlimited playback and additional channels.

However, with the number of free music services that offer premium paid content, Sony will undoubtedly have a hard time making its service well-known enough for Apple users to switch over to the service.

Making the move to iOS devices is a necessary step for Sony if it wants to be a top player in the industry, proving that the mobile music industry is becoming more crowded.

?IOS is more of a challenge than Android because Apple has a music service integrated into the operating system, whereas on Android there is more of a level-playing field,? Mr. Ashdown said.

Sony also has the opportunity to spread its Music Unlimited service on its line of handsets since the company recently bought out Ericsson?s share of Sony Ericsson.

Mobile beat
As one of the top record labels, Sony automatically has a leg up in the space, but it will have to fight for recognition with consumers.

The broadening of Music Unlimited is a sign that consumers are more willing to pay for music subscriptions if they can access it across all of their devices.

More importantly, it is proof that there might be a space for record labels to tap into mobile services and help digital revenue, which has stereotypically been a challenge for music companies.

?Sony?s premise and company structure affords it a prime opportunity to become a force to be reckoned with in mobile music,? said Wilhelm Taht, director of marketing at Flowd, Helsinki.

?As one of the big four labels, which has had a robust mobile division for many years, with a strong handset division featuring an impressive Android lineup, Sony is an obvious player in the next phase of mobile music offerings,? he said.

?It will remain to be seen how they actually compare with behemoth brands such as Apple, though. Sony has a better chance than most would have at this stage of the game.?

Late last year, Google announced its plans to roll out its music service Google Music to Android devices and desktops, which lets users buy music via Google?s Android Market (see story).

In addition to Apple?s iTunes and Android?s Google Music, Sony?s Unlimited Music will also compete with Amazon?s Music Store.

Plus, digital radio stations including Pandora and Spotify, which offer basic ad-supported music with the option to upgrade to premium ad-free content, will also compete with Sony and prove to be a challenge to marketers looking to target mobile music users.

Apple?s bite
The mobile music space is already crowded and with new music services popping up consistently, it shows that consumers have a large appetite for music streaming services.

However, iTunes is still a staple to Apple devices, and in order to compete Apple will need to ramp up its music offerings.

?Once the number of these on-demand streaming options increases, it will put pressure on Apple to launch a similar service,? said Aapo Markkanen, London-based senior analyst for consumer mobility at ABI Research.

One of the biggest challenges Apple will face is understanding that the future of digital music involves more than just a stored library ? consumers want access to music that they can transport seamlessly from devices.

Apple is known for keeping a tight grip on its services and keeping content limited to one user. However, with more consumers demanding content to travel with them across multiple devices, music is the latest example of how the company needs to revamp its strategy.

?Apple?s iTunes, even after the launch of iCloud, is based on a different paradigm that owning the music tracks and albums one listens to is still more compelling than having mere access to them,? Mr. Markkanen said.

?I however believe that Apple will eventually change its strategy,? he said.

Final Take
Lauren Johnson is editorial assistant on Mobile Marketer, New York