Comes with music was expected this year in America
Nokia is one of the largest mobile
phone providers in the world by marketshare with about 38% of the
global market. The problem for Nokia is that in the U.S. its products
aren't nearly as popular with a mere 7% of the U.S. market.
Earlier
this year Nokia, launched its Comes with Music program in Britain and
then added other European nations to the list of active locations.
The service provides buyers of qualifying Nokia mobiles access to a
full year of unlimited music downloads that they can keep forever.
The service sounds good and to many the big problem was that Nokia
lacked a compelling mobile phone to bundle with the program.
Nokia
had previously said that the Comes with Music program would be coming
to America in 2009. Forbes is reporting today that the Comes
with Music service will now be delayed
until 2010 for Americans. Forbes reports that even in
Europe the reception for Comes with Music has been lukewarm. Nokia
has had no real success with the service in developed nations, but it
has reportedly seen moderate success in developing countries.
Forbes
quotes analyst Mark Mulligan from Forrester Research as saying,
"Comes With Music has been below expectations in developed
markets, though Nokia is having more success in emerging markets. In
Western Europe and specifically Great Britain, Nokia has been
hindered by not having a strong operator route to market."
According
to Mulligan, the problem Nokia has had gathering operators to
distribute its Comes with Music handsets is that it hasn't offered
enough value to the operators. Many of the operators that Nokia is
trying to woo have already spent significant sums creating their own
music stores and they want a larger portion of the profits to offer
the handsets.
The delay in the U.S. launch of the service
can’t be considered a good thing for Nokia, but it is likely trying
to wait to unveil the service when it has a compelling handset to
offer alongside it. Perhaps Nokia is waiting until the N900
Maemo-powered handset comes to the U.S. and will launch Comes
with Music at the same time.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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