Southern Cross Austereo joins the music streaming fray

By By David Blight | 17 October 2012

Southern Cross Austereo (SCA) has entered the music streaming space through a partnership with Digital Music Distribution (DMD), the joint venture between Sony and Universal which is set to launch Spotify competitor Songl.

The deal will see SCA become an equal joint venture owner with Sony Music Entertainment Australia and Universal Music Australia.

DMD is a digital distribution company for music, which services Foxtel music channels, provides content to retail outlets as well as hotels and clubs through a deal with Satellite Music Australia, and is set to roll out digital streaming service Songl. Songl will compete with the likes of Spotify and Rdio.

DMD chief executive Mark Shaw told AdNews: “Having the Sony and Universal partnership gave us a music DNA, but adding Southern Cross Austereo will make us even stronger.

“The deal will give Southern Cross Austereo alternative platforms to sell to its advertisers, because it is coming on board with a flexible music platform. For the music labels, having Southern Cross as a partner will allow them to amplify their platforms and artists.

“And for DMD, we will have the power, the reach, and the innovation of a media company combined with the support of labels.”

Southern Cross Austereo chief Rhys Holleran said in a statement: “We are delighted to be able to enhance music and entertainment experiences for our audiences and introduce even more innovative solutions for our customers. We have long and successful relationships with both Sony and Universal through our national radio network which has been the catalyst for us all to join forces through DMD to deliver what we plan to be Australia’s best digital music entertainment experiences.”

The revelation comes only days after Australian Radio Network announced it was launching iHeartRadio in Australia as a digital radio and streaming service.

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