Nokia launches unlimited music service

Nokia has announced a deal with record label Universal Music Group that will give customers unlimited access to millions of tracks a year and allow them to keep the music afterwards. The offer will be open to customers who purchase certain types of Nokia devices. The Finnish handset manufacturer is already talking to three other international record labels that might be interested in joining the venture. Universal refused to disclose terms, but Rob Wells, Digital Operations Chief at Universal, told Reuters that the label would not have agreed to the deal “unless there was enough money for the world’s biggest record company.”

Single track downloads on mobile have failed to generate huge revenues, and the mobile industry is now looking to find ways to tap into the lucrative music market. Vodafone launched an unlimited music service, MusicStation, last month in partnership with Omnifone. This model does not allow users to keep the music once their subscriptions cease. Research firm Understanding & Solutions estimates that mobile music represents about 13 percent of global recorded music retail value. The mobile music market should grow to US$11 billion by 2011, it forecasts. 

Source: REUTERS