Nokia fights Apple with unlimited mobile music

by Paul McNally, Brand Republic 02-Sep-08, 09:10

LONDON - Mobile phone manufacturer Nokia is to launch a new unlimited free music download service in the UK this autumn in a move that will put it in direct competition with Apple's iPhone and the iTunes Store.

The Nokia 5310 will be the first device to include the new "Comes With Music" service, which will allow users to download from a catalogue of more than 2m tracks free of charge for 12 months.

The handset will be sold on pre-pay contracts through Carphone Warehouse and is reported to go on sale in October, in time for the Christmas sales period. A basic version of the device, without the download service, is already available on pay-as-you-go.

Once the 12-month free download contract expires, users will still have access to the songs they have already downloaded but will have to renew their subscription in order to access new tracks.

The songs are protected by digital rights management (DRM) preventing them from being copied on to CDs or shared illegally over the internet.

The service is being piloted in the UK ahead of a roll-out in Europe and Asia next year.

Three of the "big four" record labels -- SonyBMG, Universal and Warner Music -- are reported to have already signed up. Nokia is understood to be in talks with EMI and hopes it will be on board by the time of the UK launch this autumn.

The labels will make their repertoire available on the new service in exchange for a licence fee from Nokia.

The Nokia UK managing director, Simon Ainslie, said: "'Comes With Music' is the most compelling digital music offer ever introduced to the UK.

"You get a fantastic Nokia device with unlimited access for a year to a huge catalogue of music. We're thrilled to be working with Carphone Warehouse to bring 'Comes With Music' to the UK."

The Carphone Warehouse -- which is also the UK distributor for the Apple iPhone -- has begun accepting pre-orders for the new Nokia device today. A retail price has yet to be confirmed.