Nokia’s Comes With Music Poses Threat To iTunes Dominance: Report
While 83 percent of those surveyed said they use their phones to play music, only 6 percent of all tracks on those mobile devices are purchased from mobile storefronts, according to a new report from Strategy Analytics. The report, which attempts to dissect Nokia’s potentially game-changing Comes with Music service, found that 84 percent of respondents were willing to pay for such a service. Data from the survey concluded that price and selection are the most important factors in determining a customer’s music store choice and that brand loyalty is “extremely low.” But there’s no real evidence to back that up that at this point. Apple’s iTunes store reigns supreme, having tracked more sales than Wal-Mart (NYSE: WMT) off and on, but Strategy Analytics believes Apple (NSDQ: AAPL) has a serious competitor on its hands with an “offer that seems free to the end user.” (Release).
The first Nokia (NYSE: NOK) phone that supports the Comes With Music service is supposed to launch Oct. 17 in the U.K., according to Carphone Warehouse, Reuters reports. And, recent rumors have surfaced that Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) is also close to launching a similar music service, as well. It’s unknown when these services will come to the U.S., but it will be interesting to see if these two European-focused handset manufacturers can uproot consumer habits, especially when it comes to the kind of loyalty Apple users exhibit.
Posted In: Entertainment, Music, Companies, Apple, Nokia, Sony, Sony Ericsson, comes with music
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