Nokia and Warner Music Group Agree on “Comes With Music”
By Alice Turner
22:09, July 1st 2008
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Nokia and Warner Music Group Agree on “Comes With Music”

Giant mobile phone manufacturer Nokia made official on Tuesday its deal with Warner Music Group's catalog to its "Comes With Music" line of phones. Consequently, the phone produced by the Finish giant will come with a year's worth of limitless music downloads, as well as its Nokia Music Stores.

Before the deal signed with Warner Music Group, the multinational communications corporation headquartered in Keilaniemi, Espoo, signed similar agreements with Universal Music Group in December 2007, and Sony BMG in April. EMI is the only major record company not yet involved.

Nokia's Comes With Music will enable its customers to keep all of the music downloaded in the first year of owning a supported handset unlimited. After the first 12 months, the customers will be able to continue to purchase and add tracks from the Nokia Music Store. The concept, which isn’t exclusive to Nokia, shows the industry's efforts to develop new business models that can compete with piracy and decreasing CD sales.

Nokia, whose Comes With Music service was described as “a significant step forward in the evolution of digital music,” said it sold $146 million music-enabled phones in 2007. The current market for digital music downloads is $2.9 billion.

Over the past year, the world’s biggest phone maker also rolled out Internet-oriented products and services such as the Ovi online photo-sharing service, a Flickr-like application called Share Online, Nokia Maps, and Nokia's Internet Radio.

"Our goal is to act less like a traditional manufacturer and more like an Internet company.” said Nokia CEO Olli-Pekka Kallasvuo at the company’s annual meeting.

Warner Music Group’s shares dropped 1.3%, to $7.05, during morning trading in New York, while Nokia fell 3.0%, in Helsinki.



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