Datz no real threat, says Omnifone
A NEW online music service - Datz – doesn't present a massive threat to Musicstation - Omnifone's specialist mobile music store, according to a spokesman. Even though Sainsbury's may be reselling it.
There're several good reasons why Omnifone isn't quaking in its boots says PR man, Tim Hadley. For starters, Musicstation is accessible from a handset while Datz requires users to own a PC and 'side-load' MP3s onto it.
More importantly, Omnifone can identify which type of handset is accessing its service and provide the most suitable format. "Our preferred file format is eAAC+," Hadley explained. "Sony Ericsson has tested it and found tracks can be downloaded in just 10 seconds."
Indeed, Sony Ericsson has created a special version of its own music service called Playnow Plus which utilises Omnifone's technology. Handsets are even being shipped with Musicstation tracks already preloaded.
Datz's attraction, however, is that it is entirely DRM free. Which means that those willing to fork out £99.99 for a year's subscription can load their music onto any dedicated music player or musicphone.
They can even change handset brands and retain their music. Just try that with Nokia's Comes with Music. Talking of which Orange UK is in official denial over signing up to this Nokia offering.
A spokesperson told the INQ, "We are aware that Carphone Warehouse are currently selling Nokia's Come's With Music prepay and pay monthly handsets with Orange SIMs in their stores.
We can confirm that we are having on going discussion with Nokia regarding the CWM service, however, there is no direct agreement with Nokia at this st age." So, there!
Sainsbury's participation in this whole area is interesting. It will be stocking the Datz Music Lounge gift box which comes with the software and a USB decryption dongle inside. A Mac version is expected next month (December).
However, Sainsburys is believed to be in talks with T-Mobile and Orange to set up its own virtual mobile network (MVNO) and mimic the success of Virgin Mobile.
Incidentally, although the Carphone Warehouse and Nokia (online) have both been selling Comes with Music handsets already, 3 UK goes live with the offering via a Nokia N95 8GB this Monday (November 3rd). µ
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If they're really not worried, then they are counting on the stupidity of their customers, which although possible for a short term success, will inevitably turn round and bite them in the arse.
As soon as Omnifone customers discover that they don't own the music they paid for, and can't move it to their new latest and greatest phone, they'll be slagging them off left right and centre, and off to sainsbury's.

Also the ability to download the tracks direct to the phone is hardly a plus. The Omnifone target market is yoof. Yoof don't generally have all you can eat data contracts, so are really going to love the bill for the music they don't actually own plus it's data charge.
Datz will only be bought by Dad's. An MP3 is about 10 times the size of an Omnifone track - I know, I've got it and have checked the files - so MusicStation lets you put 10x the number of songs on your mobile as Datz! And side-loading with cables is crap. I just want to download new stuff on the go.
To follow up on this post Musically surveyed 1300 music fans in US, UK and France and when asked
What kind of unlimited music download service would fans like to get.
41% said one that was free from their ISP or mobile network, but tied to that provider (the TDC Play model).
38% preferred an annual up-front PC-based subscription model, like Datz Music Lounge.
14% said a rental-based subscription - the Napster / MusicStation model
5% said a phone/PC based service from their mobile operator,
2% said a phone/PC based service from their mobile handset maker - e.g. Comes With Music.
Will be interesting to see who’ s right may be Datz is more of a threat than they realise