Business Matters: Will Boinc's Business Model Get Stale Before It Launches?
Business Matters: Will Boinc's Business Model Get Stale Before It Launches?

Years in the making, Beyond Oblivion's device-based music service, called Boinc, is on pace to debut this fall. Licenses with Sony Music have been completed, according to a person with knowledge of the negotiations, and other licensing deals are nearing completion.

Licensing deal with the remaining major music groups will likely be completed by the end of September, CEO Adam Kidron tells Billboard.biz. In addition, a source has confirmed the company is also in discussions with independent labels.

As Billboard.biz reported Monday, Beyond Oblivion's service is called Boinc, a different take on the familiar music subscription service. Boinc will be attached to participating devices for the life of that device and its cost will be integrated into the price of the device. Thus, the consumer will not experience advertisements, download costs or monthly subscription fees.

Because Boinc is device-based, Beyond Oblivion will license its service to manufacturers (and possibly mobile carriers as well). Licensing deals with device manufacturers should be announced by the end of September, says Kidron. "They're very important partners, because they're what give us critical mass. They give meaning to social. Social doesn't really mean much if you can't share between lots of people."

The volume of mobile devices sold globally is the cornerstone of Beyond Oblivion's hopes for Boinc. To get more recorded music revenue, find a different way to create digital music consumers, says Kidron. "It comes down to this fundamental philosophy that the revenues of the music industry can be much larger by providing extraordinary value to a number of people through their devices, and by settling for less per-device on the idea that substantially more devices are going to be sold."

Stressing that exact launch plans are not final, Kidron says the initial public beta will probably be in the U.K. and U.S. with the possibility of adding a couple other markets. From those original markets the service will expand with the help of offices or representatives in Japan, South Korea and China. "Asia is very important for us," he adds.