Printed from http://www.electronista.com

Free music may cripple Nokia financially

updated 06:35 pm EDT, Mon April 28, 2008

Comes With Music burden

Nokia's "Comes With Music" program, offering those who purchase Nokia phones nearly unlimited free access to a large music database, could cost the company more than it would make. The Register writes that Nokia would be responsible for footing the bill for downloads that exceed the estimated limit of 35 songs per user, charged wholesale per unit. The move reportedly pressured Ed Averdieck, former Managing Director of Nokia Music, to leave his position.

In addition, former head of Nokia Multimedia Tommi Mustonen, was put into a position where he must deal with label negotiations personally. Nokia is currently in the process of working out deals with EMI and Warner Music, as well as several independent labels.

"Comes With Music" is a controversial music purchase plan wherein the subscription cost for the near-unlimited downloads is rolled into the purchase price for phones that are part of program. Nokia hopes this unique approach will help it achieve market dominance ahead of Apple, which announced that iTunes recently passed Walmart as the largest US retailer in legal digital music downloads.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. bobolicious

    Dedicated MacNNer

    Joined: Aug 2002

    0

    Nokia who...?

    ...yeah baby, Apple has me because of lossless & I haven't bought a single iTune yet I've filled a large capacity iPod - for me it's not about the tunes, it's about the music... ;-)

  1. ZinkDifferent

    Fresh-Faced Recruit

    Joined: Jan 2005

    0

    Yeah....

    ...let me know how that brilliant strategy works out, will you, Nokia?

  1. WiseWeasel

    Junior Member

    Joined: Apr 1999

    0

    no problem...

    Fortunately for Nokia, only a fraction of a percent of their userbase will even be inclined to use their music store, so they should be fine even if some of those exceed that 35-song threshold...

  1. climacs

    Forum Regular

    Joined: Sep 2001

    0

    d'oh

    yeah that could be a problem, if it succeeds then Nokia could be royally screwed. Can you offload these songs from the phone to a PC? That's what I want to know. If they remain chained to your Nokia phone then it's really not all that useful unless you can drop them into your memory card, I guess. Anyway, I'm not buying a Nokia anytime soon regardless.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bringi ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Sponsor

toggle

Most Commented

 
toggle

Popular News