Sunday, January 27, 2008

Nokia Going to Share Music Revenue with Operators

Mobile is becoming a major source of entertainment day by day. Listening music in cell phone has become a part of life these days in many parts of the world. Now, realizing the ever-growing market of music, Nokia, one of the biggest mobile set producers, has recently taken an initiative to win more market share of mobile phone globally using the music as a tool.

Nokia has introduced a program titled ``Comes With Music,” in which one can enjoy unlimited access to millions of music tracks for a year just buying a Nokia set. With that program, Nokia was able to reach their goal, but some of the mobile operators who sell downloaded music to the users, were facing loses in their revenues.

Bloomberg reported:

The Finnish company unveiled in December the ``Comes With Music'' program, which will allow customers to buy a phone with a year of unlimited access to millions of tracks included in the purchase price. Nokia agreed to offer tracks from Vivendi SA's Universal Music Group, and is in talks with other major labels.

Mobile-phone service providers including Vodafone Group Plc and France Telecom SA's Orange sell music downloads to subscribers to help lift average revenue per user. Nokia's shift into services has caused concern among phone companies about how revenue is spread among the players.

Nokia bosses are trying their best to increase their market share providing more and more music to the users. Nokia’s popularity for its music has been increased in the last few years. Music has become one of their market advantages. I do not know if Nokia will emerge as a big threat to ipod in future, but it is almost certain that music will help Nokia to increase its global sales.

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