“Nokia, the world’s largest mobile phone maker, is planning to compete head-to-head with Apple Computer for control of the multi-billion dollar global market for digital music,” David Ibison and Kevin Allison report for The Financial Times. “The Finnish company will in 2007 set up a rival to Apple’s iTunes online music store and also hopes its music-enabled phones will eventually depose Apple’s iconic iPod digital music player.”
“The new service, as yet unnamed, could pose a threat to Apple’s dominance of the multi-billion dollar online music industry, which it built following the 2001 launch of iTunes and the iPod. ‘We want to be a global leader in mobile music experiences, and if that means operating in areas where Apple is, then so be it,’ Anssi Vanjoki, executive vice-president of Nokia Multimedia, told the Financial Times,” Ibison and Allison report.
“The news of the proposed launch comes as Norway, Denmark and Sweden are challenging Apple to allow songs downloaded from iTunes to be played on any digital music player,” Ibison and Allison report. “While further details of the planned service were unavailable, Nokia on Tuesday announced the proposed acquisition of Loudeye, a US digital music distributor, for $60m. Loudeye’s name will be dropped and will provide the platform for Nokia’s digital music offering. Loudeye has a current library of 1.6m music tracks.”
Full article here.
It’s good to have dreams. FYI, we’re hearing rumblings from different sources about iPod+iTunes that should become clearer soon.
” . . . hopes its music-enabled phones will eventually depose Apple’s iconic iPod digital music player.”
And eventually, the sun will go out. Coincidentally, right after Vista ships.
Not even worth expending mental energy, on this one.
What the hell is “we’re hearing rumblings from different sources about iPod+iTunes that should become clearer soon” supposed to be about?
… too busy laughing to post ….
“What the hell is ‘we’re hearing rumblings from different sources about iPod+iTunes that should become clearer soon’ supposed to be about?”
Some guesses:
1. Gas (from undercooked cabbage)
2. 1.0 on the Richter scale
3. A semi drove by
4. faulty iPod hard drive
Rumblings, as in rumors of catastrophic importance? Industry-impacting? Interesting.
Just like the nGage poses a treath to the DS and PSP.
How long before MDN starts writing “beleaguered Nokia”?
OK, Sounds good, . . . BUT.
Wasn’t this the part of the world that said that Apple had to have handware / software that would let anyone play the downloaded music????
If that is the case, then Nokia would have to abide by the same rules. FREE TUNES for everyone….. Yea. — Right??
And if they do not have to abide, then does that mean the other countries in the area were doing something illegal just to harm Apple???
I don’t know, but the whole thing smells 2 week old like North Sea fish to me.
” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
N.
I hear there is going to be a hot new spidey-pod that shoots webs.
nokia are very big over hear in europe, people love them, and there interface. and as more and more people are using there mobile phones to listen to music, its not inconcievable. apple may or may not want an iphone, but they NEED one to stay in the game, everybody has a mobile, and if they get better and better at playing music, they will see no need for an additional ipod
MDN, I think those sources need turkey sandwiches to quell those hunger pangs.
Well, with Nokia’s business strategy outlined, now we know why Norway, Denmark and Sweden are challenging Apple to allow songs downloaded from iTunes to be played on any digital music player.
Nothing like getting second-rate local governments to create laws in your favor so that you can compete with inferior technology…
What a waste of 60 million. Who are these people who have so much money to throw down the drain?
MW: let, as in let me have some of that cash if you’re gonna just throw it away like that!
Geo, I think you meant:
“Nothing like getting second-rate local governments to create laws in your favor so that you can compete using inferior technology…”
…instead of…
“Nothing like getting second-rate local governments to create laws in your favor so that you can compete with inferior technology…”
=)
“nokia are very big over hear in europe, people love them, and there interface. and as more and more people are using there mobile phones to listen to music, its not inconcievable. apple may or may not want an iphone, but they NEED one to stay in the game, everybody has a mobile, and if they get better and better at playing music, they will see no need for an additional ipod”
Yep, mobile phones WILL get better and better at handling music (eliminating the “I don’t want my battery going out” complaint). For that reason, I agree that Apple will NEED to create the “iPhone” if they want to keep their big lead. It may be a few years before the phones like Nokia’s catch up, but I think they will.
Nokia are scared sh*tless of Apple getting into the mobile phone business so they are trying to do a M$ and spreading some vapourware before they get stomped.
Businesses should focus on what they do best. Nokia getting into the music download business will divert their attention away from what they do best, i.e. making phones. They have already lost ground to Samsung and Motorola and those are the companies they should be focusing on competing with rather than getting distracted and really losing their way.
Geo,
For your information, Nokia is from Finland, not Sweden, Norway or Denmark, which are the most advanced and egalitarian democracies in the world btw. They are lightyears ahead of “democracies” like the USA, Australia or the UK which are behaving more and more like police states these days.
These first rate Scandinavian governments have very strong consumer protection laws, not to mention extremely high environmental and engineering standards and there is which have come about independently of the second coming of Apple and the rise of the iPod.
Like any agency of Government, when a complaint is received, they are obliged by law to investigate, which is what has happened with iPod+iTunes.
It is certainly disappointing that there is no push by these consumer agencies to force MS to open it’s media formats to other players, but let’s give it some time for the game to play. We’ll just have to sit back and see how this one pans out.
If something is a possible threat to iPod, it’s music-enabled phones. Everyone needs a mobile phone nowadays and people carry them all the time, so it’s natural that they want to have a music player included to the phone. Some phones include 4GB flash, and interfaces are getting better all the time. Sure, it’s only hardware, not iTunes… but many people don’t use iTunes, especially in Europe it doesn’t have the same popularity than in US. The lack of iTunes compatibility may be a strong negative point in US, but not in Europe.
Sweet Pod of My-y-ine
spideypod reference from Kel Varnsen:
http://www.flickr.com/photos/rstrb8r/192828749/
>>> From Stuart: “These first rate Scandinavian governments have very strong consumer protection laws…,”
You mean protection laws like if a company wants to sell a DRM protected song and a consumer thinks it is a good value and wants to buy it, the government will prohibit the consumer from doing so?
That kind of protection?
I hope Nokia tries this, I really do. The result of it will be an iPhone in my pocket
” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
The only protection involved with the attack on iTMS DRM’d music is the protection of home grown industries from outside competition, be it France or Scandinavia.
I would wager that the only people who complained about iTMS DRM were employees or agents for Nokia or some local outfit using Microsoft’s DRM.
Every country does it. As a Canadian, we see American protectionism all of the time. It’s hard to believe, but there are some American industries that are terrified of competeing in the global market as well.
Just ask any union shop, cattle rancher or forestry worker.
Americans line up to buy our oil and gas though, bless their hearts.
I always knew that this is what the Scandies were up to!
Remember, it was only until the past few years that the Scandanavian govts even allowed their companies to take bribes to foreign officials as a tax deduction! (there was pressure by the US through the EU that forced them to abolish these deductions!) This kind of business conduct would land an American executive in jail under FCPA!!
So don’t get on your high horses about Scandanvia vs. Great Britian, America & Australia…
I don’t put anything past these countries in the name of industrial policy…
Convergence.
phones will adapt music capabilities (already doing so, and getting better)
The iPod HAS to adapt phone capabilities or they will lose. Very simple.
in the end I believe that apple can win this , but there is absolutely no question they have to incorporate phone technology into the iPod. absolutely none.
and i wouldnt be leaving it too much longer to release the product into the market place, once consumers get used to a brand such as a sony being their device for playing music and being a phone, brand loyality comes into the equation and its tougher to bring them back.
2006 is the year when Apple need to do a 2001 and release something as big as the original iPod.
I wish I knew what was going on in those development rooms in Cupertino.
Nokia says ‘We want to be a global leader in mobile music experiences…”
That’s why they won’t be. Apple want to be THE lobal leader.
Nokia says ‘We want to be a global leader in mobile music experiences…”
That’s why they won’t be. Apple want to be THE global leader.
Let´s correct few things.
0) Nokia comes from Finland
Not from Norway, Sweden or Denmark.
1) Nokia does not have inferior technology.
Nokia greated the whole mobile telephone concept.
A radio telephone was developed in 1963. The world’s first international cellular mobile telephone network NMT was opened in Finland and Scandinavia in 1981 with Nokia introducing the first car phones for the network. The world’s first NMT handportable, the Nokia Cityman, was launched in 1987. Rest is history and because Nokia is the technology leader. It is the biggest mobile telephone manufacturer in the world.
2) Apple should do something quickly = iPhone
Nokia does not need to be scared at all. They sell hundreds of millions of mobile devices every year and their growth rate is over 25% annually.
For them it is logical to add their own music library and support that in their new phones. They know how to do it and the mobile telephone music business is already worth billions. Even in Finland it was worth over 180 million €uros last year (5,2 million people). Nokia has already sold more music than Apple with iTunes ever. So remember this is nothing new to Nokia that has been in the mobile device business and music business long before Apple.
3) iPhone
Nokia owns huge amount of the key technologies. If Apple wants to do iPhone then they need technology from the Nokia and they have to be compatible with the Nokia. Nokia does not need to be compatible with Apple.
4) How can Nokia afford to waste 60 million dollars?
It does not go to waste att all. They make billions out of it.
Nokias annual sales in 2005 were over 34 billion € and they made over 4 billion € profit . (that is $40.9 billion and $5,5 billion). Last year alone they sold over 265 million mobile device. This year way more than 300 million. Apple generated 2005 revenue worth of $13.93 billion and net profit of $1.335 billion.
5) Finland is the pioneer in the fields of Democracy. Here is one example: In the year 2006 we celebrated the 100th anniversary of universal and equal suffrage in Finland. The year 1906 represents an important milestone for women´s social and political participation. Accordingly, Finland was the first country where the women could fully exercise their voting rights and eligibility to stand for elective office.
USA introduced the equal rights to its citizens in the year 1964. “Only” 58 Years after Finland.
Norway, Sweden and Denmark are also excellent what comes to democracy. They are though constitutional monarchies and they do not have the President as we do.
butt butt butt who will Zune go after then?
Microsoft has a problem because loudeye provides the catalog for the Microsoft compatible music stores and as we know Nokia does not like Microsoft. So Zunes music catalog is now owned by Nokia.
Nokia knows how to make huge amount of handy devices with good profit margins. They own the operating system and the whole gadget and now the library. The DRM is a easy part for them. There is no way that Microsoft can compete with that. Apple has a slight possibility with this. Zunes is out of luck.
I agree One Guy from Finland -Nokia is not a company to be underestimated.
However, on the issue of Women’s Sufferage let me point out a few facts from the southern hemisphere. New Zealand women were the first in the world to gain the right to vote in a national election. While in Australia in 1894 South Australian Women were granted the right to vote followed by Western Australia in 1899, NSW in 1902 and finally Victoria in 1908. Australian women were enfranchised for the new Commonwealth Parliament in 1901. Women first voted in second Federal election in 1903.
“Well, with Nokia’s business strategy outlined, now we know why Norway, Denmark and Sweden are challenging Apple to allow songs downloaded from iTunes to be played on any digital music player.
Nothing like getting second-rate local governments to create laws in your favor so that you can compete with inferior technology…”
L0lzor. That’s like saying Mexico and Canada would conspire because some European product is threatening the US equivalent of that product.
MDNMW: “value” as in more value to consumers through competition.
“Norway, Sweden and Denmark are also excellent what comes to democracy. “
Democratic Denmark decided that they wanted one of the Canadian islands near Ellesmere. We told them to screw off but they twits put up a flag. We sent up our military to shoo them away.
Where was their ‘democratic;’ government then? So people stop with the US and others acting like police states! All countries do stupid things, even us in Canada (though much less than average…lol).
bondi Poi. You are both right and wrong. Yes New Zealand was first with the national elections.
Finland was the first country where the women could FULLY exercise their voting rights AND eligibility to stand for elective office.
MDN word: True
bondi Poi. You are both right and wrong. Yes New Zealand was first with the national elections.
Finland was the first country where the women could FULLY exercise their voting rights AND eligibility to stand for elective office.
MDN word: True