News
Nokia defends Comes With Music model
Tim Green May 2 2008, 12:29pm
Nokia has defended its Comes With Music business model in the face of growing critical scrutiny.
The company insists it will make money from the concept, following reports that the more popular the service becomes the more it will cost Nokia.
" Recent articles that I've seen have fundamentally misunderstood the concept behind the Comes With Music model…we expect to make money both from our traditional device sales, as well as from the 'Comes With Music' service," music boss Liz Schimel told Reuters. "I can assure you that we are looking out for everyone's interests in creating these new business models, including our own."
Comes With Music gives consumers free’ music for a year when they purchase a designated handset. It’s currently supported by Universal and Sony BMG, with Nokia confident of bringing in EMI and Warner by year end.
Nokia is keeping its per-handset royalty to the labels under wraps, but has refuted the two figures being thrown about: $35 and €10.
