Nokia's "Comes With Music" Comes With High Price

NEW DETAILS EMERGE

Nokia is looking at a "crippling" financial bill for its "Comes With Music" program bundling free music downloads with phones, according to the UK's Register.

Universal Music and Sony BMG are on board and The Register claims that Nokia must pay the wholesale per-unit rate for downloads over a certain ceiling - reportedly just 35 songs per user. "It will cost Nokia a fortune - it's a reckless business move," an insider and supporter of the concept told the Register who also claims that at least two senior execs have been replaced over problems with the business strategy.

COMMENTARY: Something feels wrong with these numbers; but as I've written before, the devil is always in the details. I've asked repeatedly how the money would trickle down to artists and that question remains unanswered. But if the Register's reporting is true, the money the labels will receive are even higher than anticipated.

I also predict that if these numbers are correct "Comes With Music" will not come for long.