News from the Music Industry

Rob Lewis, CEO of British mobile music provider Omnifone, told Reuters on Tuesday his firm had inked a deal to supply the BlackBerry with unlimited tracks from their MusicStation service, sounding the latest challenge to Apple’s iTunes for the newly launched iPhone.

Omnifone, which has sealed a wide-ranging, exclusive pact with Vodafone, which also markets mobile devices, would kick off the service in England in November before expanding it worldwide, Lewis said.

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“The iPhone is a very attractive device … but it’s very limited in terms of music capability,” Lewis said.

“I have to download music at home over iTunes using my own computer. I cannot download music when I’m out and about,” he said after unveiling a deal to provide music downloads for a Hutchison Whampoa Hong Kong unit.

A spokeswoman for Research in Motion did not comment.

Mobile handset makers and network operators have invested heavily in music in past years to boost revenue.

Omnifone’s MusicStation now partners some of the biggest names in the music business, from EMI and Warner Music to Sony BMG and Universal Music, and claims to be able to supply some 10 million songs across 30 countries.

Vodafone recently signed an exclusive deal with Omnifone that will give customers an unlimited number of tracks from a catalogue of over 1 million to their mobile phones for a weekly fee of 1.99 pounds ($4).

MusicStation allows consumers to download music while they are on the move and it will be available on new Vodafone UK handsets as well as existing 2.5G and 3G mobiles, meaning most customers would not need to upgrade their phones.