Breaking News

Razer Unveils Raiju V3 Pro Samsung announces Galaxy XR headset Leica M EV1 – the first M-Camera with an integrated electronic viewfinder Micron Delivers Industry’s Highest Capacity SOCAMM2 for Low-Power DRAM in the AI Data Center KIOXIA launches EXCERIA PLUS G3 and EXCERIA G3 microSD cards for exceptional photography and video performance

logo

  • Share Us
    • Facebook
    • Twitter
  • Home
  • Home
  • News
  • Reviews
  • Essays
  • Forum
  • Legacy
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
    • Site Map

Search form

Nokia confident free music downloads will profit

Nokia confident free music downloads will profit

Smartphones Apr 30,2008 0

Offering unlimited music downloads to phone buyers will make money for Nokia as well as record labels, the handset maker said, dismissing talk the move would come at the expense of profits. "We expect to make money both from our traditional device sales, as well as from the 'Comes With Music' service," said Liz Schimel, head of Nokia's music business. "I can assure you that we are looking out for everyone's interests in creating these new business models, including our own."

The new music offering from Nokia, the first cellphone maker to push heavily into content, would differ from any other package on the market as users can keep all the music they have downloaded during the 12 months.

Last week Nokia struck a deal with Sony BMG to offer the label's tracks in its "Comes with Music" service, adding to last December's deal with top record label Universal.

Having the world's two largest labels on board looks set to help Nokia attract smaller music companies and challenge the dominant pay-per-track sales model for digital music.

"This new model is innovative and creates a positive situation for all stakeholders, but it does require a different way of thinking for our content partners," Schimel said, but declined to go into details.

Reports on different Internet media have suggested the world's biggest handset maker was paying $35 to Universal alone for each sold handset; and some reports suggest Nokia would be paying an extra fee for each downloaded song after the first 35 songs, potentially eroding its close to 40 percent gross margins in cellphone operations.

"Recent articles that I've seen have fundamentally misunderstood the concept behind the Comes With Music model," Schimel said.

Such unlimited download models could offer a shot in the arm to the ailing music industry, which is struggling to find ways to make up for falling CD sales.

However, the success of Nokia's service could hurt CD sales further when clients who still buy their CDs turn to phones, said Mark Mulligan, research director at Jupiter Research.

"There is inherent tension in there," he said.

Tags: Nokia
Previous Post
Microsoft cuts Xbox prices in four Asian markets
Next Post
EU Commissioner wants copyright extension to pay session musicians

Related Posts

  • Ericsson, Nokia, II-VI, Lumentum and Sumitomo Electric, have jointly produced a technical paper on Mobile Optical Pluggables

  • Nokia to Continue Work With Microsoft on SONiC Data Centre Software

  • Nokia and Vodafone Hutchison Australia Unlock Low-band 5G Spectrum

  • Nokia Reports Q1 Profit Despite Supply Disruption

  • India's Bharti Airtel to Use Nokia's Network Equipment

  • HMD Global Announces New 5G Nokia Smartphone

  • Nokia Introduces New Wi-Fi 6 Mesh Router

  • Nokia Bell Labs Sets World Record in Fiber Optics Speed

Latest News

Razer Unveils Raiju V3 Pro
Gaming

Razer Unveils Raiju V3 Pro

Samsung announces Galaxy XR headset
Consumer Electronics

Samsung announces Galaxy XR headset

Leica M EV1 – the first M-Camera with an integrated electronic viewfinder
Cameras

Leica M EV1 – the first M-Camera with an integrated electronic viewfinder

Micron Delivers Industry’s Highest Capacity SOCAMM2 for Low-Power DRAM in the AI Data Center
Enterprise & IT

Micron Delivers Industry’s Highest Capacity SOCAMM2 for Low-Power DRAM in the AI Data Center

KIOXIA launches EXCERIA PLUS G3 and EXCERIA G3 microSD cards for exceptional photography and video performance
Cameras

KIOXIA launches EXCERIA PLUS G3 and EXCERIA G3 microSD cards for exceptional photography and video performance

Popular Reviews

be quiet! Dark Mount Keyboard

be quiet! Dark Mount Keyboard

Terramaster F8-SSD

Terramaster F8-SSD

be quiet! Light Mount Keyboard

be quiet! Light Mount Keyboard

be quiet! Pure Base 501

be quiet! Pure Base 501

Soundpeats Pop Clip

Soundpeats Pop Clip

Akaso 360 Action camera

Akaso 360 Action camera

Dragon Touch Digital Calendar

Dragon Touch Digital Calendar

Noctua NF-A12x25 G2 fans

Noctua NF-A12x25 G2 fans

Main menu

  • Home
  • News
  • Reviews
  • Essays
  • Forum
  • Legacy
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
    • Site Map
  • About
  • Privacy
  • Contact Us
  • Promotional Opportunities @ CdrInfo.com
  • Advertise on out site
  • Submit your News to our site
  • RSS Feed