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Informa Telecoms & Media: "Comes With Music" - A generous offer from Nokia for a longer term market gain(M2 PressWIRE Via Acquire Media NewsEdge) RDATE:03092008 Nokia has announced that UK will be the first market where it will launch its much talked about "Comes With Music" service. The agreement with UMG (Universal Music Group), SONY BMG and Warner Music will ensure that users will have access to over 2.1 million music tracks. Carphone Warehouse will be the exclusive UK prepay channel to sell Nokia 5310 XpressMusic "Comes With Music" handset. In general, adoption of most mobile music services has so far been slow and disappointing. Nokia hopes to change this trend and therefore unlike most other music services, "Comes With Music" will allow users to keep and listen to all the downloaded music even after the one year subscription period ends. However, many media reports have raised concerns on the business model and whether Nokia will be able to make any profit from the service. Research from Informa Telecoms & Media shows that mobile music sales will generate over $12.3 billion in revenues in 2008. At present ringtones and ringback tones are contributing to most of the revenues but music streaming and full track download services will see strong growth in the next five years. The research is contained in the report, Mobile Music, 5th Edition, published recently by Informa Telecoms & Media. "It seems that 'Comes With Music' forms part of a longer term strategy of Nokia. Therefore in the short term, it is prepared to offer what looks like a very generous service, at the expense of its own margins on certain handset models", comments Shailendra Pandey, senior research analyst, and author of the upcoming Mobile Content and Services report. "Also, 'Comes With Music' forms part of Nokia's strategy to compete with rivals such as Apple and to drive the uptake of its Ovi services, including the purchase of music from its Music Store. Nokia believes that after the one year subscription period ends, many of the 'Comes With Music' users will continue to spend on music and purchase new tracks and releases from the Nokia music store, or will subscribe to unlimited access to its Music Store", adds Pandey. Mobile music industry needs to come up with radical new services that can tap into mobile-specific functions and find a business model attractive to users. The successful business models will be the ones that users vote for, not the ones that operators, handset manufacturers and other dominant players in the mobile industry impose on the market. About Mobile Music (5th edition): Now in its 5th edition, Mobile Music provides forecasts to 2012 together with thorough descriptions of all the different ways music is used via the mobile. The report discusses and concentrates on the market dynamics that are at play across different regions and gives a clear insight into reasons for growth and decline across the industry. Download the table of contents here: http://informamedia.msgfocus.com/c/1eSgBg2sQqvaVWeYW For your FREE brochure click here: http://informamedia.msgfocus.com/c/1eSgDyfDJGm1dPb3n To order or for more information, click here: http://informamedia.msgfocus.com/c/1eSgFQsOCWcRvI77O About Mobile Content & Services (7th edition): Mobile Content and Services 7th edition includes fully revised forecasts to 2013, covering revenue, users and traffic for various applications and services. Split both by geographic regions and by service sectors, the report identifies the most popular forms of mobile content and services, and the countries that offer the most growth potential. These forecasts are paired with in-depth analysis of the current mobile content and services market, and recommendations for various players in the industry. Download the table of contents here: http://informamedia.msgfocus.com/c/1eSgI8FZwc3HNB3cf For more information click here: http://informamedia.msgfocus.com/c/1eSgKqTaprUy5tZgG If you have any questions please contact us on Tel: +44 (0) 20 7017 5537 or email: [email protected] About Informa Telecoms & Media http://informamedia.msgfocus.com/c/1eSgMJ6liHLonmVl7 Informa Telecoms & Media is the leading provider of business intelligence and strategic marketing solutions to global telecoms and media markets. Driven by constant first-hand contact with the industry our 90 analysts and researchers produce a range of intelligence services including news and analytical products, in-depth market reports and Datasets focused on technology, strategy and content. Informa Telecoms & Media also organizes more than 125 annual events, attended by more than 70,000 executives. In addition to the GSM>3G World Series, our events cover subjects as diverse as fixed and mobile operator strategy, technology, TV, mobile music and games. Informa Telecoms & Media is a trading name of Informa UK Limited. CONTACT: Shailendra Pandey, Senior Research Analyst, Informa Telecoms & Media Tel: +44 (0)207 017 5611 e-mail: [email protected] ((M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected])). Copyright ? 2008 M2 Communications Ltd. |