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IFPI DIGITAL MUSIC REPORT 2009The shift to ‘music access’.The music business is moving from a modelbased only on sales to one of “monetising”access to music. The introduction of “access”services is the single most important currentdevelopment in the music business. While theservices differ in detail, they all operate on thesame principle of offering consumers accessto music, either bundled with other servicesor as an additional subscription option.Nokia launched its Comes With Music servicein the UK in the run-up to Christmas 2008.It is expected to be rolled out to other keymarkets in 2009. When consumers buy aNokia Comes With Music phone, they gainunlimited music access for a year and candownload songs at no additional charge.Users access the service by downloadinga PC application which they can use todownload from the Nokia Music Storeand subsequently transfer music totheir handset. At the end of the yearconsumers can keep all the tracks theyhave downloaded and continue to updatetheir collection with à-la-carte purchasesat the Nokia Music Store or upgrade toanother Comes With Music handset.It is believed that the new service can growthe whole music market, not merely replace“We believe that Comes With Musicwill transform the way peopleenjoy music. With unlimitedmusic access for a year, fans canenjoy their favourite artists ordelve into new genres withouthaving to worry about individualtrack or album purchases.”Tera Ojanpera, Head ofEntertainment, Nokia.existing sales. In the UK, for example,research by TNS shows that total annualmusic spend averages £65, but there arehuge variations above and below that average.Francis Keeling, commercial director, digital,Universal Music Group International, says thissuggests the new model will complementothers: “We want to convert people at thelower end of the spending spectrum throughdeals like Comes With Music, withoutcannibalising the top end of the market.”Key to Comes With Music is the offer oflimitless music and the combination ofsubscription and ownership. “Our researchshows that consumers will pay extra for ahandset if they can see the benefit of gainingunlimited access to music,” says UlrichJaerkel, senior vice president, digital andnew business development EMEA, at SonyMusic Entertainment, “Some shy back if thereis no ownership, which is why the ComesWith Music concept is so popular. It’s aboutmusic discovery as well as keeping songs andthat is popular across all demographics.”Sony Ericsson is also advancing the modelof “music access”. Its PlayNow plusservice was first launched in Sweden withoperator Telenor on a special edition ofSony Ericsson Walkman phone. The serviceis expected to launch in other markets inearly 2009. PlayNow plus allows usersto download, play and recommend musicwherever they are and whenever they like,directly over the mobile network. It offers“Ultimately, we will see all sortsof products come with music –home stereos, cars and potentiallytelevisions. Music can become animportant element that enhances thevalue of consumer electronics devices,providing consumers with a verycomplete and satisfying experience.”Thomas Hesse, President,Global Digital Business,Sony Music Entertainment.high-quality audio and access to a hugemusic catalogue, providing 1,000 pre-loadedpopular tracks on the handset and a PCplayer. At the end of their six to 18 monthcontract, users can keep up to 300 oftheir most played tracks on any device.Lennard Hoornik, corporate vice presidentand head of marketing at Sony Ericsson,says: “All mobile consumers want to havecontent on their phone, but many findthe experience difficult, slow and timeconsuming. With PlayNow plus, therewill be no more barriers, we’re givingconsumers the freedom to instantly discover,download, play and recommend all themusic they want - anytime, anywhere.”PlayNow plus is powered by Omnifone,which provides music services for useinternationally by device vendors, mobilenetwork operators and broadband providerssuch as Vodafone, Telenor, 3 Hong Kongand Vodacom. Omnifone chief executive RobLewis says: “We believe there is an increasingemphasis on services that are delivered incooperation with device makers and we arein talks with a wide range of vendors fromin-car audio providers to personal computerand set-top box manufacturers that will bedelivering unlimited music services globally.”8