KEY POINTS:
Nokia has teamed up with Universal Music to allow mobile phone users unlimited free downloads from the largest music company, a move that should stimulate mobile music usage and put pressure on Apple's iTunes which dominates the market.
Nokia has launched a new offer called "Comes With Music", available from the second half of next year when a user buys a Nokia handset.
The consumer will be able to download an unlimited number of songs from Universal's back catalogue which boasts millions of songs from artists such as Willie Nelson, Elton John and Bon Jovi and new acts such as Amy Winehouse. Once downloaded, the user will keep the songs.
The market for music downloaded straight on to mobile phones is still nascent, but has been given a publicity fillip by the launch of Apple's iPhone.
However, Apple's position in the digital download space, where iTunes commands a market share of around 80 per cent, is not yet replicated in the mobile handset market where Nokia is by far the largest player. For music companies, mobile phones provide direct access into a consumer's pocket.
Universal has reduced its dependence on iTunes. In July it refused to renew an agreement with Apple and made content available to rivals.
It is thought Universal will take a cut from sales of the device while the music will be tracked via digital rights management to ensure the artist is compensated.
- Independent
