Nokia spurns Apple in bid for share of mobile music market

By Matt Whipp

Posted on 10 Aug 2004 at 12:49

Nokia and Loudeye are to work on a global music service for mobile networks and phones.

Nokia has reached an agreement with the company that bought the OD2 music service to create a mobile platform for the delivery of digital music to phones.

Motorola recently cut a deal with Apple to use its iTunes software on phones that will be available next year, but instead Nokia is choosing the company that owns OD2, whose technology powers the music services of a number of European ISPs and portals, including Wanadoo and MSN.

A Nokia spokesperson told us: 'We felt that Loudeye's expertise in this field and its capabilities to roll out a worldwide platform was most suitable for us. We're going to bring devices and services together with mobile operators in this, and Loudeye was really the perfect partner.'

However, he wouldn't comment on whether the company had approached Apple to develop such a service. Apple too declined to comment on any negotiations.

The deal will see Nokia fund development work at Loudeye with a 'multi-million dollar commitment'. The Nokia spokesperson could not say whether the service would use the OD2 technology.

Jeff Cavins, Loudeye's CEO, said: 'This agreement with Nokia represents a significant strategic opportunity for Loudeye to work with the leading mobile communications company in the world to develop an advanced wireless music platform... We are very excited about our relationship with Nokia and look forward to sharing more details in the future.'

However, the service is on a fast-track route to market. We were told the service and mobile phones capable of use it will be available next year.