Mobile entertainment service provider Dada Entertainment is today launched a hybrid web-mobile music subscription service called Play.me.

The Web-based service operates much like any other music subscription service, offering unlimited streaming for $10 a month, which also includes five free DRM free downloads a month. A free tie - with no ads to support it - offers 10 hours of free streaming a month and one free download a week. Users can additionally make playlists and create customized ration stations.

Mobile access to the service comes in the form of an Android app, available through the Android Market, which requires the monthly subscription to access. The app allows full streaming capabilities just like the Web-based version, as well as a caching feature that can store songs and playlists for access when the device is not in service range. The company plans to add an iPhone and Blackberry version within weeks.

The service has content from all major labels save Warner Music Group, as well as an indie catalog gained from IODA, The Orchard and Beggars Group, for a total of 2.5 million tracks at launch.

The announcement comes during a busy time for mobile music applications. Mobile ringtone and full-track download service Thumbplay tomorrow (Jan. 7) will unveil a similar cloud-based music streaming app called Thumbplay Music, limited at first to BlackBerry devices.

In doing so, both Dada and Thumbplay face a steep climb. Both companies made their bones in the ringtone market, which has experienced a well-publicized slide. While streaming music, both online and to mobile phones, is something music fans have expressed great interest in doing, the two companies will be competing against far larger rivals such as Rhapsody, Napster, and pending services coming from Spotify and, perhaps, even Apple.

Simply having a dominant position in the ringtone market does not automatically ensure success in other forms of music delivery. Mobile operators found this out after their efforts to establish branded mobile music download services failed to have any impact.

Dada Entertainment originally was a joint venture between Sony Music Entertainment and European digital entertainment firm Dada.net. Last summer, Sony relinquished its stake in Dada Entertainment in favor of an equity interest in the parent company Dada.net.

Follow digital and mobile correspondent Antony Bruno on Twitter at twitter/billboarddigitl.