Melodeo, a service that delivers Web-based audio clips to phones, is currently testing a service that streams music to cell phones based on a customer's iTunes playlist.

The new Melodeo service will let consumers listen to their digital music libraries on the go without a portable player. It also lets listeners access songs from their library on more than one PC.

Mind you, Melodeo is not selling copies of songs you to store on your phone - it simply plays the songs contained on your iTunes playlist. That means Melodeo would only have to pay Internet radio usage fees (a tenth of a cent per song play).

"We're doing everything we can to follow the current legal guidelines and standard industry practices where the legal guidelines are not crystal clear," said David Dederer, Melodeo's vice president for music services.

Revenue could come from monthly fees for the service, software download fees, or even audio advertisements, added Dederer.

They expect the first version of the service to launch in 6 to 12 weeks, according to Dederer, who said he hopes to be able to announce a carrier deal by then. (Melodeo currently is partnered with AT&T and Alltel Corp.)

[Billboard.biz]
Thanks Tim!