What is really stymieing Virgin Media’s subscription play in the UK? The unlimited MP3 offering first bubbled last June, thanks to a successful deal with Universal Music Group. But broader major label licensing has proven difficult for the ISP-based subscription concept, especially given the totally unlimited and unprotected proposition.

But independent label licensing is also proving tricky. According to a confidential memo unearthed by Music Week, serious differences also surround negotiations with indie consortium Merlin. “Although we are deep into negotiations with Virgin Media, we do not believe we have yet reached a point where Virgin Media’s offer in our view acceptably values a collective license to our members’ repertoire,” the letter reveals.

But Virgin is plowing forward, and pointing to an eventual launch. Just recently at the Ideal Home Show in London, Virgin Media head of media relations Asam Ahmad noted that the service is “well progressed,” according to a report by Digital Spy. But Ahmad acknowledged a complicated rights licensing discussion, and declined to offer a concrete timetable.