Neuf launches a "free" music offer as part of its triple-play package

24 Aug

FranceThe French ISPs are amongst the most innovative in terms of services provided mostly because Free has been pushing them forward for quite a few years. But this time it seems Neuf has taken a step forward that Free has not yet taken, namely the inclusion of a music download offer in their 30EUR/month package. There’s an article on the WSJ about this entitled Neuf Cegetel, Universal Music offer downloads.

Basically, what it comes down to is that any subsriber to Neuf Cegetel’s 29.99 EUR/month 100% Neuf Box offer (around 1 million subscribers to this day) will pick a musical genre amongst nine available (French pop, pop, rock, disco-funk, world, electro-dance, rap-RnB, jazz-blues or classical). In that genre, they will benefit from unlimited downloads. If they want access to all the genres, they will have to pay an additional 4.99 EUR per month.

The deal is done with Universal, a subsidiary of the Vivendi group which owns a majority share in Neuf Cegetel. Only Universal titles will be available, 150.000, the press release says, as well as 3.000 videos. The system is strongly DRM-ed, with limits on the number of computers the titles can be used on and the models of music players they are compatible with. Obviously, the DRM will block access to the content if the customer leaves Neuf and he/she will need to update the rights by connecting his device to the Neuf service each month. The DRM used is Microsoft’s and the compression format is WMA.

It’s an interesting move and while I’m not certain it will do much for Neuf’s acquisition figures, it’s likely to generate a little extra ARPU. After all, 5 EUR/month for all you can eat music is a pretty good bargain if you ignore the attached strings. Universal is rumoured to earn a percentage on each subscription, although it’s unclear whether it’s only subscriptions to the music service or to the 100% Neuf Box sans extra music as well. One major flaw in the plan though is the choice of wma which makes this incompatible with iPods. Not surprising considering Universal’s recent declarations regarding iTunes, but still potentially crippling.

In the wake of this, Orange has announced that they were working on a music service that would be much broader and comprehensive. Free has not commented but have been rumoured for a while to be working on a TV-based free gaming service…

  • http://lunaticthought.blogspot.com Raindeer

    Over at GigaOM word is that both France Telecom and Free are doing the same
    http://gigaom.com/2007/08/22/in-france-music-will-be-free/
    http://www.iliad.fr/presse/2007/CP_230807.pdf (Free)
    http://www.telegeography.com/cu/article.php?article_id=19330&email=html (France Telecom)
    Oh well, what can I say… The Australians and the Americans now make better wine than the French. But France beats them where it matters: affordable, working, feature rich broadband! Vive la France!!

  • http://www.fiberevolution.com Benoît FELTEN

    Thanks for the pointer, Raindeer. You’re a quick one !!!
    I wasn’t aware of Free’s press release on the topic, but it seems to me like an absolute non-event. All the functionalities they mention are available to any deezer.com and they don’t mention any specific functions that would work for Free subscribers. If you could play the Deezer playlists on TV or had a TV-based interface, that would be an interesting response, but it seems to me – again based on that press release – that this is little more than “you can already have free legal music, check this site out”.
    As to Orange’s response, I’ll wait and see. As all incumbents, they’re not the best at “giving free stuff away” and I didn’t see their comments as little more than “me toos” so far.
    Regarding American and Australian wines, much as I like them (especially the latter), I’d be happy to change your mind on the French production if we get together IRL at some point ;)

  • JC

    In my opinion, Free’s press release may not be an absolute non-event…
    Indeed, even if Deezer is available to any broadband user, this press release may let think that Free is actually working with Deezer on some projects (Deezer on Freebox TV?).
    Maybe I’m wrong, but it seems hard to believe that Iliad, in its press release, would say “Free launches ITS own service with Deezer.com” if there were absolutely no link between the two societies. OK, that’s a win/win press release (free publicity for Deezer; quick answer for Free), but it has been really quick… Moreover, Deezer servers are now hosted by Free
    Well, wait & see…

  • http://www.fiberevolution.com Benoit FELTEN

    I tend to agree with you, JC, but that’s what have so far. In fact, I’m even surprised that Free would release something like that. They still have the edge with all the services they have already launched like the S-VOD or TV Perso, they didn’t need to respond. Now it makes them look silly even if they are planning something.
    Mind you I think Orange’s press release makes them look silly too: “I’m going to do it too, you know, only better !”
    In the longer term, I’d be surprised if both of them weren’t working on something, and it makes sense for Free to do it with partners in a fully free model. That’s consistent with their product enhancement policies so far. I rather think they should have announced something more consistent when they were ready though, rather than launch a half-baked press release that effectively says nothing…