News

Thai entertainment company, Sony to use kiosks for digital music downloads

April 9, 2003

BANGKOK, Thailand -- EOToday.com, an e-commerce unit of entertainment firm GMM Grammy Plc will be spun off as a new company as part of the group's expansion plans, according to a report in the Bangkok Post.

Its separation will take place either this quarter or the third quarter. Varavij Kambhu Na Ayudhaya, managing director for EOToday.com, would not give details of the company's registered capital or the name of the new company.

After the spin-off, he told the Post, the company would become more active in expanding beyond e-commerce.

EOToday.com on April 9 announced a partnership with Sony Thai Co to operate a music downloading service called Music 4U. In the initial stage, Sony will provide kiosks and the hardware needed to download the tunes at its 16 Sony shops in Bangkok.

EOToday parent GMM Grammy will provide the digital content. The company has about 10,000 songs by 300 singers in its archive. For Music 4U, only 5,000 songs are being offered in the first phase.

The two firms will split revenue from sales. The companies hope to add the service at 100 Sony outlets by the end of 2003.

The new service was expected to generate 20 million to 30 million baht ($468,860 to $703,411 U.S.) in revenue this year, Varavij said.

Customers will pay 199 baht ($4.66 U.S.) to download 14 songs. Music lovers must wait three days to receive their selected music, which can be retrieved at kiosks or delivered.

Varavij said the kiosks in Sony shops would also be used to download other services, including ringtones.