MetroPCS and Rhapsody to Offer Streaming Music for Cell Phones

MetroPCS Communication, the 5^th largest cell phone carrier, is going to be offering a subscription based streaming music service in conjunction with Rhapsody. It will be $60 per month plan that also includes unlimited voice, text, and data for Android (News - Alert) phones. Rhapsody already has 800,000 subscribers for their stand alone plan that each pay $10 per month. The new talk, text, web, and music plan will be available on all new Android smart-phones. Existing MetroPCS Android smart-phone owners will asl o be given the opportunity to upgrade.

MetroPCS decided to move into this market based on the knowledge that many of their customers were already paying for third part streaming music services, and internal survey suggesting that it would be very profitable, and no doubt the fact that competing company Cricket has already launched a similar program called Muve Music.

Shortly after the launch of Muve Music, it had added around 100,000 subscribers, despite the fact that Cricket only offers one phone which will work the the program, the Samsung (News - Alert) Suede. They plan to add some Android phones to their line-up in the fall, which will no doubt increase Muve Music subscriptions even further. Muve users have reportedly “downloaded hundreds of songs each month and listened for two to three hours a day” according to Yahoo News.

“Providing our customers with a high value, mobile entertainment experience is exactly what they're looking for” said Gavin Throckmorton, staff vice president of product management. The president of Rhapsody said that the success of Muve was “encouraging.” He also said "It's the value of bundled service — music as a service with something else. I think their success is understandable and it gives us great optimism about what we see MetroPCS doing out of the gate."

The bump in the road to seeing subscription based music plans available from all carriers is Warner Music Group, however. No Warner Music Group artists are available via the cellular plan, which cuts a significant number of popular artists out. Warner Music Group is the third largest recording company after Sony Music Entertainment and EMI Group. It is unlikely they Warner Music Group will be able to hold out much longer as the music industry tries new methods to regain profits as CD sales continue their downward spiral.