Thumbplay tunes into crowded, complicated full-track download market

Thumbplay Inc. bulked up its library off-deck goodies with a full-track mobile download service.
The New York-based wireless content company launched a beta version of the offering, which delivers DRM-free tunes directly to MP3-enabled phones as well as PCs. The songs are available for $1 each via the company’s $10 monthly subscription service, which allows users to choose from a variety of content including ringtones and games.
Full songs are available from EMI Music and Universal Music Group – Thumbplay has yet to notch deals with the other two major labels – as well as independent providers The Orchard and INgrooves. The company is in talks with other labels and additional agreements “are likely to be announced soon,” the company said in a prepared statement.
“Right now, there are millions of customers who own phones that are already able to serve as excellent MP3 players,” said CEO Are Traasdahl, “and, in fact, a significant number of consumers are now using their phones as their primary entertainment devices. The number of our customers with MP3-enabled phones has grown five-fold in the last 18 months alone.”
Thumbplay’s move comes as competition in the full-track download space heats up – despite an apparent lack of viable business models. Carriers continue to struggle to gain traction with iTunes-like, pay-per-song services, while Nokia Corp. and others have begun packaging handsets with unlimited songs in an effort to boost hardware sales.