Nokia To Share "Comes With Music" Revenue With Operators

Nokia (NYSE: NOK) will share revenue from Comes with Music service with operators that are cooperative, reports Bloomberg. “In those cases where we cooperate with operators, there will be an arrangement so they can get a piece,” said Tero Ojanpera, an executive vice president and a member of Nokia’s executive board, in an interview today in Cannes, France.” He went on to say that despite a lot of companies doing some phones with music they have not been revenue drivers for the music industry. “Selling mobile music in a big way does not exist today,” Ojanpera said. “Music has been used more as a marketing tool. Creating a new business that will be, in years to come, billions of dollars is something completely different”. The handsets in question will not be available without the music service.

This tends to indicate that the handsets will be sold at a premium rather than the music being used as a marketing tool. Nokia will be paying fees to the music labels, and if there’s enough for a meaningful revenue share with operators Nokia is probably planning to build the cost into the handsets. There’s also likely to be a number of handsets — to generate “billions of dollars” Nokia has to be looking at getting at least tens of millions of handsets into the marketplace.