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Mercora offers music ‘placeshifting’ with streaming broadcast service

Mercora Inc. plans to bring more attention to the hot topic of placeshifting this week with the launch of a second version of its Radio 2.0.

The offering, billed as “MySpace for music lovers,” allows members to become digital DJs, creating their own Internet-based streaming music broadcasts. Users can listen to other members’ programs, browse friends’ music collections and search for broadcasts from like-minded members.

“The whole idea behind what we do is that we wanted to build a network where it’s all about the self-expression around music,” according to founder Srivats Sampath. “We felt the best way to do that was to take your own music and create little radio channels that people can listen in on and appreciate.”

The free service boasts more than 1 million subscribers in 140 countries, according to Sampath, offering 60,000 user-programmed stations. Mercora is legal, as the site offers only streaming audio as opposed to music downloads, and Sampath pays royalties to recording-industry organizations. And it’s mobile, with a downloadable application for Microsoft Corp. Windows Mobile-enabled devices.

The offering underscores the growing trend of moving multimedia content across platforms, or placeshifting. Sony of Canada Ltd. joined the bandwagon last week with software that transfers home audio and visual content to PCs or PlayStation Portable devices, and Sling Media Inc. garnered headlines recently by bringing its Slingbox to mobile, allowing users to access TV broadcasts over smart phones.

Sampath, who founded McAfee.com, said he’s had talks with European carriers about creating revenue-share business models in exchange for deck placement and carrier billing arrangements. U.S. operators have been less enthusiastic about the service, he concedes, as they try to push their own lucrative data services to subscribers.

Like other executives in the nascent placeshifting space, though, Sampath believes it would behoove operators to offer a wide variety of data services-even if it means subscribers might choose third-party offerings over carrier-branded services.

“I don’t see why they should (object to Mercora),” Sampath said. “At the end of the day, the carriers should now at least get more interest in getting more people to sign up for 3G networks.”

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