Tidbits On "Comes With Music" Surface
A few specifics on Nokia's "Comes With Music" initiative came to light today. (Read this December 2007 press release for more info.) Comes with Music is a plan the mobile operator to allow subscribers access to a large catalog of music. Nokia would pay a fee for access to a music company's catalog of music. The fee would be absorbed by Nokia and presumably passed on (at least in part) to the consumer.
The Hollywood Reporter's Mark Halper says an unnamed, "well-informed mobile industry executive" put the per-handset amount at $35.
paidContent's James Quintana Pearce did a bit of digging and found a source that said the per-unit fee starts around $33.50 for the first 2.5 million units and scales down at higher volumes. The plan is said to include "a limited but relatively high number songs." The most interesting tidbit is the source's claim that Comes With Music is based on a download -- not a subscription -- model.
For those of you doing some quick math on the back of the nearest envelope, UMG had 28.8% of the global recorded market in 2007. Divide the market share into the per-unit fee of $33.50 and you get $116.32. That's what access to all music would cost if the other majors and all indies negotiated equivalent rates on a pro-rata basis.
Music Groups