DISQUS

Mobile Industry Review: Nokia ‘Comes with Music’ set to change the marketplace?

  • juliancooling · 1 year ago
    I am missing something here. Who is paying the per-performance fee. A radio station pays for every broadcast song but it has a revenue streams that correspond to its fees.

    Is Nokia charging a premium upfront to cover the first year's fees? What about year 2. I still run a P800 bought on its release - admittedly that is a long time for a phone, but will also be a long time for Nokia between revenue refreshes if too many people start doing this kind of thing - and as phones get better people will refresh less (especially if it means losing fabulous on-off deals that are tied to the handset).
  • Ewan · 1 year ago
    All will hopefully be revealed, Julian -- I think Ben might have got along
    to the Carphone Warehouse launch this evening. From what I know so far --
    and it's a bit sketchy as I haven't been fully briefed -- Nokia have done a
    deal with the labels to avoid paying per-play charges. In year 2, you buy
    another Nokia. Or pay up to extend, I reckon.

    2008/9/2 Disqus <>
  • Ben Smith · 1 year ago
    Who pays? Nokia. That's possibly why a number of executives responsible for establishing this arrangement have gone to spend 'more time with their families'.

    Year 2? You keep the music to play on your PC and the handset it came with. If you change handsets you lose the ability to play it other than on your PC (unless it's a warranty fix or loss replacement where Nokia can transfer the service). Yes, this is rubbish.

    You can't buy the subscription (yet) it only comes with a handset.

    It's a good deal for consumers, but Nokia are going to have a massive headache if they don't fix the transfer and 'what next?' issues before the first subscriptions exprire...
  • Ewan · 1 year ago
    Meanwhile everyone and their dog associated with mobile music is watching
    them like a hawk. If you get it working reasonably then the consumer will
    love it...

    2008/9/3 Disqus <>
  • jamesbody · 1 year ago
    I think that this is a very interesting and significant development in the market.

    The concept of 'all you can eat' bundled phone calls has been around for some time now - here each and every call has a cost to the provider who has done a load of statistical analysis around useage in order to ensure that ON AVERAGE he will make a healthy profit on the service.

    I see that the music download model is very similar - each and every track will have a finitie wholesale price, yet there are in practice a number of constraints that limit the number of tracks that the average customer can and will download. Time, available bandwidth and storage space on the phone will act as a friction on the downloading of tracks.

    I am very interested to see the price tag that this is released with and how it works out. I would expect that Nokia will make a pile out of this - at least initially (until other providers catch on)!