Music service looks set to cost Nokia

Mon, 21 Apr 2008 06:59:55 -0400

Nokia looks like it is heading for more trouble following the news that its 'Comes With Music' service seems set to severely damage its handset profit margins. According to the Hollywood Reporter, Nokia will be paying the world's biggest label, Universal Music Group, US$35 per handset to bundle access to the label's catalogue. The deal, which has met with astonishment by music industry veterans, is around seven times what some privately estimated the deal was worth. While this news was probably not relevant to Nokia's financial announcement--which knocked 13 per cent off its share price, this 'Comes With Music' deal with Universal does not look good for the future fortunes of Nokia.

For more on this story:
- read The Register and Arstechnica

Related stories:
Nokia: Comes With Music deals close. Nokia story
EMI in talks to join Nokia's Comes With Music. EMI Story

SPOTLIGHT: Vodafone offers unlimited downloads

Wed, 31 Oct 2007 07:59:52 -0400

Vodafone UK is offering customers unlimited access to over a million tracks from all the major record labels, as well as leading independents, on a range of new handsets for Christmas. Through an exclusive agreement with Omnifone, Vodafone will roll out their MusicStation service, giving customers the ability to download tracks from Universal Music Group, Sony BMG Music Entertainment, EMI Music and Warner Music Group direct to their handsets.