Orange follows Apple online

Orange will launch an online multimedia store.

Sources inform ''Globes'' that Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), the Israeli Orange franchisee, will launch an online multimedia store in September. The multimedia store will operate along the concept of Apple Inc.'s (Nasdaq: AAPL) iTunes Store.

Until now, Orange has offered its subscribers to download songs from its fairly large database via a cellular portal. In the past year, it also allowed subscribers to view its song library via a basic and not very visible mini-site on the company homepage, from which selected songs could be sent to the subscribers' handsets.

Subscribers will be able to use the new service to download songs, television shows, and movies to a computer and to decide whether to transfer them to their handsets. It is not clear at this stage which intellectual property protection mechanism Orange will use, but it is clear that the charge for the service will be included on the subscriber's phone bill, or it can be paid by credit card.

Orange has been trying for months to develop its own online multimedia store. The methods it's examined included online access from MP3 players, and WiFi-supporting devices similar to the Rhapsody online music service in the US. Use of the iPod Touch makes this more convenient, because external applications can be installed on it.

An MP3 importer said, "Partner representatives were here several months ago, and took some units for testing." Other executives in the industry declined to comment.

The sources added that Orange was in negotiations with Israeli company PeerTV Ltd., which manufactures the "PeerStation", and that Orange intends to use either this product or a similar one for the launch of a household wireless digital set-top-box. This set-top-box links a home's telephone and television enabling the purchase of high-definition real-time multimedia content via live streaming.

Orange intends for this set-top-box to supplement its online multimedia store. Together, they will enable the telecommunications operator to compete against the VOD service of Hot Cable Systems Media Ltd. (TASE: HOT).

Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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