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Article

Title: Can You Hear Me Now?

Author: Gibbs, Colin Article Type: Product Analysis
Source: RCR Wireless News, p14(1) Publication Date: May 12, 2008
  ISSN: 1533-0796
URL of Publication: http://www.rcrnews.com

Nokia partnered with Universal Music Group International (UMGI) six months ago to launch Comes With Music, a service package providing unlimited full-track downloads for one year bundled with the purchase of certain Nokia phones. After 12 months, users can keep the music whether or not they buy a new phone, switch services or simply choose to stop downloading. A few months after Comes With Music launched, Omnifone announced its 'pre-licensed mobile music service' MusicStation Max, embedded in phones made by LG Electronics Co. And Apple is reported to be considering two subsidized service package models, one that incurs $100 for unlimited access and one that offers monthly subscriptions 'for less than $10.' Nokia's partnership with UMGI, and Omnifone's MusicStation Max, are part of a positive trend for both the cell phone manufacture and music industries. The two subsidized service packages are expected to 'offset collapsing CD sales and rampant online file-sharing' in the music industry, as well as help wireless companies which have failed to attract an audience by duplicating Apple's pay-per-song iTunes model. It's unclear how Nokia expects to profit from its 'all-you-can-download devices,' though Sony BMG and another major partner have signed on. Nokia believes music will help sell phones, that unlimited-plan customers will want to migrate to pay-per-month subscriptions at the end of 12 months, and that music lovers can be convinced to buy expensive new phones every year. Phones are subsidized in the U.S., although services are not. RCA Music Group believes the unlimited-music service model platform has 'sockets' available for PCs with broadband access and Wi-Fi-enabled MP3 players as well.

Companies:
Apple Computer Inc Apple Inc
LG Electronics Inc Nokia Corp
Omnifone Ltd Sony BMG Music Entertainment
Universal Music Group (UMG)

Products:
Comes With Music (CWM) iTunes
MusicStation Max (MSM)

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