Telstra is launching a full-scale assault on the music streaming market, taking the fight to Apple, Google, Spotify and the rest in collaboration with legendary music producers Jimmy Iovine and Dr. Dre.
The telco's march into content continues apace. It has already launched one music streaming service, in partnership with MOG. That has had limited success in the marketplace and last year was acquired by Beats, which was co-founded by Iovine and Dr. Dre and is now owned by handset-maker HTC.
Last month CNET reported that Iovine was in talks with US telco AT&T about a deal. That report suggested negotiations to bundle the music streaming service as part of subscription packages. It now appears that locally a deal has been struck with Telstra to migrate the MOG service into the new streaming offering from Beats called Daisy. The launch will happen next year, according to Telstra.
The news was revealed in a job ad on the Telstra site. It confirms Telstra is recruiting a media entertainment manager to handle the process.
The ad states that responsibilities will include: "The existing MOG streaming music service as well as all things related to the launch of the new Beats/Daisy music streaming product in FY14. This will include working directly with the Beats Music team in the US and locally, as well as key stakeholders across Telstra and the local music and entertainment industries. The Media Entertainment Manager will also be responsible for looking after our evolving online/mobile games platforms and related strategy. The role will incur full responsibility for revenue, subscriber numbers and cost management."
While the music streaming market looks increasingly saturated, one of the key differentiators with Beats' Daisy model is that it uses people as well as machines to compile play-lists. Iovine has previously suggested that is where tech companies have fallen down, with the implication that content curation requires emotional input.
Iovine also has vast reach across the music industry – he is chairman of Universal Music Group's Interscope Geffen A&M Records unit. Interscope Geffen A&M has released albums by artists including Dr. Dre, Nine Inch Nails, U2, Mary J. Blige, No Doubt, Marilyn Manson, The Black Eyed Peas, Eminem, 50 Cent, and Lady Gaga.
Nine Inch Nails frontman Trent Reznor is also on board the Daisy train as creative head.
Telstra's move comes as more players pile into the streaming market. Apple has announced plans to launch iRadio (but not yet in Australia), existing local services include Google Play, Deezer, Rdio and Songl. Last week Pandora ramped up its commercial offering. From today iHeartRadio radio launches in beta in Australia.
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