Tuesday, April 22, 2008

With Music Sales In The Tank, Record Companies Try Peddling Artists By Phone

Nokia Signs Sony BMG To Its Comes With Music Offering

Nokia, the world's largest cellphone maker by sales, has now added Sony BMG Entertainment to its Comes With Music service that offers unlimited music downloads for a year on selected devices.

That could certainly boost the practically non-existent record industry, which is now celebrating first week unit sales from Mariah Carey of less than 200,000 as being huge! Never mind that her 2005 Emancipation of Mimi release moved 404,000 units during the same period!

"We think this business model will encourage users to sample a wide range of material, expand their musical tastes, and listen to more music than ever before," said Thomas Hesse, President, Global Digital Business & U.S. Sales, Sony BMG Music Entertainment.

Nokia launched Comes With Music in December, when it partnered with Universal Music, a unit of France-based Vivendi SA. The plan combines the music service with particular Nokia models, allowing users to keep the music tracks they have downloaded after their free year expires.

"It's great to have them on board as we move forward with bringing our unlimited music bundle to the market," said Tero Ojanpera, executive vice president and head of Nokia's entertainment and communities business.

The addition of Sony BMG means Nokia now has the world's two largest record companies on board as it pushes hard into Internet-based services to generate additional revenue and increase brand loyalty. Universal Music Group is the world's largest record company with 28.8% of the global market, while Sony BMG is the second-largest with 20.1%, according to Simon Dyson, principal music analyst at Informa Telecoms & Media.

Universal Music's rosta of artists include Amy Winehouse, Black Eyed Peas, and Gwen Stefani, while Sony BMG artists include Alicia Keys and Leona Lewis. [CNN]