The move is interesting in that it may provide a solution to the messy Turkish online music market. All digital rights to Turkish music has so far been held hostage by MUYAP (Turkish ASCAP), who had built a service infrastructure and has been requiring any player to guarantee a $400K/year royalties. So far, two companies had decided to pay this and sales have been dismal.
The right thing to do for TTNet (Turk Telekom’s broadband subsidiary) would be to launch this new service as a platform, with extensive APIs. There are a number of exciting applications looking to add value in this area and now it looks like a monopoly’s controlling their destiny.