Monday, April 19, 2010

Handphone Nokia

Bikini Pics - Finnish mobile-phone conglomerate Nokia attempts to carve a deeper niche into the local handset market with the recent launch of its "Comes with Music" service, a new step in the development of entertainment-on-the-go here in Beijing: a library of 9 million songs, free and instantly available for download directly to any one of eight special phones currently on sale.

"Over 50 percent of the content is Chinese music because we know that local music is key for consumers," Louise Ingram, director of communications for Nokia China, Japan and South Korea, told the Global Times. "Each market has its own catalogue based on local tastes."

Having already secured contracts with the four largest record labels in the world - Sony Music Entertainment, Universal Music Group, Warner Music Group and EMI - for Comes with Music in other regions, the Chinese version of Comes with Music also features content from local labels including EEG Music, East Asia, Huayi Brothers and Taihe. Users can download songs to their PC and upload to the phone or download to the phone wirelessly, and no exclusive contract is required with a Chinese service carrier. The free subscription to Comes with Music does expire 12 months after purchase, however.

In addition to sheer catalogue size, Comes with Music provides all songs digital-rights management (DRM)-free, allowing users to share their music continuously and without charge - "unlimited downloads which you can keep forever," according to Ingram.

One hurdle for Comes with Music noted by business commentators, is the handset's relatively high price range, starting at over 1,200 yuan - which may not be on the top end of the spectrum as far as phones go, but can't compare to China's widespread market for free, illegally-downloaded music. Ingram responded to this concern by asserting that consumers would be willing to pay more for "an unbelievable deal - the best devices with the best music package." Though she declined to comment on specifically how revenue would be divvied up among Nokia and the record labels, she said that "we have deals with all the labels that help support a healthy music ecosystem where all the stakeholders are rewarded for their contributions."

Yet in contending against both rampant piracy and the obsession with so-called "smartphones" like the iPhone, Nokia may still have a ways to go to convince Chinese consumers that Comes with Music is worth the price tag.

"I don't think this would make me more inclined to use my Nokia for music," said Monica Tam, a Beijing-based education consultant who uses her Nokia E71 model for business and an iPhone for multimedia. "The Nokia is great for work - it's got all the features of a PDA - but for music it's hard to beat the iPhone, which is much more user-friendly and better suited for media overall."

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