RIM To Launch Music Service

BlackBerry maker Research In Motion is making plans to roll out its own music streaming service that will work across its mobile devices, according to people familiar with the plans.

The new service is likely part of an attempt by RIM to improve its BlackBerry Messenger service as it competes with the mobile media platform strengths of rival Apple Inc and Google Inc’s Android.

RIM is in late-stage negotiations with major labels, including Vivendi SA’s Universal Music Group, Sony Corp’s Sony Music, Warner Music Group and EMI Group. The new service is expected to be announced by Labor Day in the United States, September 5.

RIM has been enhancing its BlackBerry Messenger offering, popularly known as BBM, since announcing its “social platform” at last September’s DevCon event where it unveiled the PlayBook tablet computer.

A RIM spokeswoman declined comment on the report but said BBM is one of the largest mobile social networks in the world.

RIM’s BlackBerry smartphones have been hit by a sharply declining market share in the United States, even as the company has expanded sales in other parts of the world, partly because of BBM’s popularity.

Analyst Matthew Thornton at Avian Securities said he doubted the music service would attract new users but might help the company keep its existing BlackBerry customers interested.

“I just don’t think trying to replicate Apple is really going to change their situation near term,” he said.

“For RIM it’s going to be the new OS 7 product first and foremost … and then it’s about QNX and making that transition.”

RIM has just launched an updated operating system on three new touchscreen devices intended to catch up with the technical specifications of Android and other rivals. The company plans to launch the first BlackBerrys using the QNX software, used on its PlayBook tablet, early next year.

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