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  5. Nokia may terminate Comes With Music service

Nokia may terminate Comes With Music service

Nokia may terminate Comes With Music service

Research by MKM Partners has led the firm to predict that Nokia will be forced to close down its Comes With Music service some time in the next year.

Nokia has been attempting to compete with Apple in the mobile music download market, offering unlimited tracks to customers that purchase one of its 'Comes With Music' handsets, including the popular 5800 XpressMusic.

The subscription-based service may bow out, but the MusicStore, which follows the iTunes model of selling tracks individually, would be likely to remain intact along with the other Ovi online services.

An MKM analyst indicated that the Comes With Music service was introduced long after Apple had reached a position of total market dominance and so even the offer of unlimited downloads was not enough to win new customers over. Music streaming services such as Spotify have also overshadowed Nokia's venture.

Markets in which Apple's dominance is less pronounced have been the most receptive to the Comes With Music service, including Mexico and South American nations, although initial download figures since launch are minuscule when compared with the 100 million tracks iTunes sold in its first year.

Experts have also blamed the poor execution and implementation of the Comes With Music service since its release, with confusing pricing and a lack of supporting handsets compromising its potential in the early stages.

Nokia dismissed the claims that the CWM service was struggling, stating that many of its users had expressed positive reactions to the power of the service. It also asserted that with unlimited downloads it could offer far better value for money than an iPhone user making multiple individual purchases on iTunes.

The Comes With Music service had a little over 100,000 users globally as of July 2009 and Nokia claims that it is still experiencing growth.

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