Strategy Analytics: Sony Ericsson and Nokia Try for Apple's Crown

Business Wire, Sept 29, 2008

Sony Ericsson Launches Bundled Music Service for Operators

BOSTON -- The Strategy Analytics Wireless Media Strategies report, "Can Nokia Challenge Apple's Digital Music Dominance," highlighted the potential impact of bundled music and mobile handset offerings on the digital music industry. Sony Ericsson has now announced the launch of 'PlayNow Plus,' a bundled offering to compete with Nokia's 'Comes With Music.'

"'PlayNow Plus' is clearly a response to Nokia's 'Comes with Music' bundled music and device offering," said Nitesh Patel, Senior Analyst of the Strategy Analytics' Wireless Media Strategies service. "However, Sony Ericsson will be able to leverage its consumer Walkman sub brand effectively and its 'PlayNow service' is carrier friendly, a fact highlighted by its launch with Telenor,' he added.

In a recent consumer study by Strategy Analytics, 84% of respondents indicated a willingness to pay for a subscription-based music service where they were allowed to keep the music at the end of the term. 34% indicated they would pay $10 per month or more. David MacQueen, Director of the Strategy Analytics Wireless Media Strategies service, noted, "While subscription-based services have not performed well to date, our consumer research shows clear latent demand for subscription music, demand which is not being filled by current services."

"The digital music industry will change significantly over the coming months and years as services such as PlayNow Plus, Comes with Music and others launch. We expect rollout to be relatively slow, and it may take some time for the impact to be felt in the US in particular, but existing services cannot afford to rest on their laurels," concluded MacQueen.

Data is taken from Strategy Analytics' Digital Media Survey, July 2008, which asked 3523 respondents from France, Germany, Italy, Spain, the UK and the US about their usage of digital media across both online and mobile platforms. Further data relating to mobile music usage is available from the Strategy Analytics report "Can Nokia challenge Apple's Digital Music Dominance".

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