Financial Times FT.com

Nokia confident of music deals

By Andrew Parker in London

Published: March 27 2008 02:00 | Last updated: March 27 2008 02:00

Nokia is increasingly confident of securing deals with the world's leading record companies ahead of launching its flagship music service for mobile phones later this year.

In December, Nokia announced plans for its Comes With Music service, under which people will be able to buy mobiles giving them access to Universal Music's entire back catalogue for up to one year.

Nokia is in talks with the other three leading record companies - Sony BMG, EMI and Warner Music - plus about 10 independent music labels about giving people access to their catalogues.

Anssi Vanjoki, Nokia's executive vice-president responsible for marketing, said he was hopeful the Comes With Music service would feature tracks from artists with all four leading record companies.

"We have negotiations and discussions ongoing with all the majors and a number of indies as well," he told the Financial Times.

"I am hopeful at the time of launch, technically we are able to deliver other labels. Certainly our target is to have other labels on board."

Comes With Music, which is expected to launch in the second half of this year, is intended to be one of the cornerstones of Nokia's expansion into internet services.

Such services are the biggest change to Nokia's business strategy since it became the world's largest mobile phone maker in the 1990s. It is seeking to generate billions of euros in the next three to five years by offering music, games and navigation services on mobiles.

Nokia is talking to the music companies about a revenue sharing agreement for Comes With Music, and Mr Vanjoki said similar arrangements might be possible with some mobile operators. He highlighted the potential for the operators to share revenue derived from transactions resulting from Comes With Music, such as sales of T-shirts that feature popular artists.

Mr Vanjoki said he was not concerned at the possibility of Apple, the US computer maker and manufacturer of the iPhone, doing a similar service to Comes With Music. Apple is engaged in talks with the leading record companies.

To beef up Nokia's internet services strategy, Mr Vanjoki said the company may do more acquisitions.

Nokia has concluded a series of deals over the past two years, including an agreement last October to buy Navteq, the US company that specialises in maps for the internet, for $8.1bn.

Mr Vanjoki agreed with suggestions by some industry analysts that Nokia has an opportunity to provide internet services in emerging markets, partly because the company is the leading supplier of mobiles in most developing countries.

Nokia was well placed to weather the economic downturn, he said

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