Dubbed Comes with Music, Nokia has already wooed Universal Music Group to its new system for delivering music on mobile phones.
Here's how it works: People who buy a Nokia Comes With Music device will have a year of access to the Sony BMG catalog of music. Consumers will be able to download tracks to both their mobile device and computer through the Nokia Music Store during the first 12 months that they own their Nokia device.
“As one of the leading major music companies in the world, our collaboration with Sony BMG means we can offer a huge range of fantastic music from both international and local artists via Comes With Music,” said Tero Ojanpera, executive vice president and head of the Nokia Entertainment and Communities business. “It's great to have them on board as we move forward with bringing our unlimited music bundle to the market.”
Expanding Music Industry Revenue
As Ojanpera sees it, Nokia Comes With Music is an innovation that not only helps people discover and enjoy music, but also expand the overall business and revenue for the benefit of artists, labels and other rights holders.
At the end of the one-year period, consumers can keep their downloaded tracks and, should they purchase a new compatible device or computer, can transfer their downloaded material by substituting their new device or computer for the original devices. That means music fans who participate in the Comes With Music experience will be able to keep their downloads on their device and/or computer for the rest of their lives.
Consumers will have a number of options for continuing to get new music after the Nokia Comes With Music subscription is over: They will be able to continue to purchase additional tracks from the Nokia Music Store, or move on to a Nokia “unlimited access” subscription service to enjoy new releases and catalog tracks not downloaded during the initial year.
Comes With Music is expected to launch in the second half of 2008 on a range of Nokia devices in selected markets.
This initiative represents a critical new way of gaining access to music, according to Thomas Hesse, president of Sony BMG Music Entertainment's Global Digital Business and U.S. Sales.
“We think this business model will encourage users to sample a wide range of material, expand their musical tastes, and listen to more music than ever before,” Hesse said. “In the process, we think it will provide new opportunities to artists from every genre of music, and increase demand for music overall.”
Building the Musical Bandwagon
The addition of Sony BMG's music catalog is good news for Nokia, as it needed a broader selection of music artists for its service, according to Deepa Karthikeyan, a wireless data analyst at Current Analysis.
Consumers do not think of music in terms of record labels, and the failure to provide a broad range of artists via record label variety risks making Nokia Comes With Music a frustrating, hit-or-miss experience, Karthikeyan said. “Nokia Comes With Music will help the handset vendor launch itself into the consumer content-services space with an original, eye-catching and potentially disruptive proposition that currently has no equal.”
Nokia unveiled two handsets Tuesday that support its recently launched music-distribution service: the 5220 XpressMusic and the 5320, which will sell for $255 and $352 respectively. The phones are moderately priced and should gain traction quickly, which enhances the overall appeal of the concept, Karthikeyan said.
“Nokia Comes With Music promises to be an effective iPhone spoiler, set to arrive in the same timeframe as the promised 3G-enabled iPhone,” she concluded. “Nokia Comes With Music is a demonstration of just how aggressive Nokia plans to be as a hybrid-device manufacturer/content services provider.”
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