According to Moconews.net, Nokia and Universal Music are adding their names to the long list of firms looking to unseat (or even gain market share on) the Juggernaut that is the Apple iPod / iTunes. The two are “teaming together to offer free 12-month access to music from Universal’s artists to buyer’s of Nokia’s musicphones… people will be able to keep the songs once the free-offer period expires. Nokia wants to get other labels to sign up to the ‘Comes With Music’ product, which it hopes to launch early next year.”
While offering free music isn’t (remotely) a new tactic in the digital music market space, what makes the move somewhat notable is the combination of the world’s largest handset manufacturer with one of the largest music labels. Likely this initiative is in reaction to the iPhone’s European launch, as Nokia tries to defend its turf from an invading, buzzworthy handset. Nokia has reason to be alarmed, as their musicphones have not sold particularly well (even in Europe, a market otherwise dominated by Nokia).
Should the iPhone successfully convert current iPod owners to the new device, suddenly Nokia has a lot bigger problem than an underperforming musicphone unit: Apple will have secured foothold in their core handset market – right in Nokia’s backyard. I would not be suprised to see more, even more aggressive announcements like this moving forward should the Apple iPhone gain traction overseas.