Nokia pulls the plug on Ovi Music
Nokia (NYSE:NOK) will terminate its Ovi Music all-you-can-eat digital download service in 27 of the 33 markets where it operates. Nokia head of music services Adam Mirabella told The Financial Times that Ovi Music will remain active in China, India, Indonesia, Brazil, Turkey and South Africa, adding that existing users in the markets impacted by the shutdown will be able to continue downloading music until their current subscriptions run out.
Dubbed Comes With Music when it launched in the U.K. market in late 2008, the service offered DRM-free MP3 files playable across PCs, Macs and personal music players. Boasting content from the four major labels (Universal, EMI, Warner and Sony), the solution was positioned as a rival to pay-per-download efforts like Apple's (NASDAQ:AAPL) iTunes; takeup was sluggish from the outset, however, and in the fall of 2009 digital music research firm Music Ally reported that fewer than 108,000 subscribers worldwide had signed up for Comes With Music in its first year. Analysts blamed inferior handsets and confusing marketing messages for the service's slow start.
"If you give the consumer the right experience they will subscribe," a major label spokesman told The Financial Times. "Consumers were confused [about Ovi Music], operators were confused."
- read this Financial Times article