Innovation and New Product Development Case Study

Nokia 'Comes With Music' Service: The Future Trend in Digital Music Landscape?

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Abstract:
In October 2008, Nokia, the world's largest mobile handset manufacturer, launched an unlimited music service, called 'Comes With Music', for its mobile customers in the UK. The music service was Nokia's attempt to challenge Apple's stronghold in the digital music industry, as well as to develop a stand alone services business. The new service bundled a Nokia handset with a year's free unlimited subscription to Nokia's Music Store catalogue. At the end of the subscription, consumers could keep all the downloaded music, continue the service if they upgraded the phone or buy a la carte from the Nokia store. The Finnish company planned to roll out its new music service in other key markets of Asia, the US, Latin America and Australia following a good experience in the UK. Nokia Comes With Music set the tone for other companies to combine their offerings with similar music subscriptions. The case compares Nokia's revolutionary service with other music services already available, and analyses its impact on the future digital music landscape. The case serves as an illustrative example of a business model innovation in the mobile music industry.

Pedagogical Objectives:

• To analyse the changing digital music industry and music download market along with the competitive dynamics.
• To discuss Nokia's new music service, Comes With Music and compare it with other existing music services
• To analyse the impact of Comes With Music on the future digital music landscape..

Keywords :  Comes With Music, Nokia, Sony Ericsson, Mobile music, Global digital music industry, Subscription-based music service, Business innovation, Free music, Internet, Recorded music, Music piracy, Apple iTunes, Microsoft Zune, Music majors, Digital entertainment service