[September 03, 2008]

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: telecoms.enquiries@informa.com

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: shailendra.pandey@informa.com

((M2 Communications Ltd disclaims all liability for information
provided within M2 PressWIRE. Data supplied by named party/parties.
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Copyright ? 2008 M2 Communications Ltd.

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