@ CES 2006: V Cast Music Launches

[by Staci Kramer] Work in progres: The only reason to be at the Hard Rock at 9 a.m. — the launch of V Cast Music, the first mobile music service based on Windows Media Player. (more details in the release here)

– Pricing: Purchases from the computer cost 99 cents and may be transferred via USB cable to the phone; purchases directly from the handset cost $1.99 for both copies.

– The service officially launches Jan. 16.

– Handsets: LG VX8100 and the Samsung a950. Verizon’s cheapest — Samsung’s model a950 — will cost $99 and includes very little memory. For $99 more, customers get a 1-gigabyte memory card that holds 700 songs.

– One million songs by spring; major music labels: Warner Music Group, EMI Music, Universal and Sony/BMG, as well as independent providers (The Orchard).

– Music purchases downloaded to the phone also will be downloaded to the user’s PC.

– As announced by Micrsoft COO Steve Ballmer a few minutes ago, the mobile downloads will be in a new format, Windows Media Audio Pro.

– Downloads from any Windows-enabled music store will work with the service so it can be used in conjunction with other services, like MTV Urge. Ballmer: “You see a real ecosystem that will allow music to thrive around the Windows Media platform.”

– Over 2 million devices already in use can be upgraded to take advantage of the new service.

Compared to this pricing, rival Sprint is selling songs for $2.50 a pop…

BusinessWeek: Since it launched a preliminary version of V Cast last February for $15 a month, the carrier has managed to sell a respectable 2 million handsets equipped for music snippets and videos.

Verizon projects that data services — driven by music, games, and its already popular ring-tone offerings — will account for 25% of revenues by about 2011, up from 6% today.

Verizon is mulling a subscription-based music service that could be launched later this year.

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