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Nokia Denies Paying Universal Music Group High Fees For Comes With Music

By Staci D. Kramer - Fri 18 Apr 2008 10:41 AM PST

Nokia (NYSE: NOK) is denying reports—including ours—of a deal to pay Universal Music Group $33-35 per handset for access to its music on the handset maker’s upcoming Comes With Music. THR reported the $35 figure; we reported it was closer to $33.50. We also reported that there is a cap for that amount—up to 2.5 million handsets—and that a volume discount kicks in. A source familiar with the situation told us the deal, which was cut late last year, includes an advance but is not all-you-can-eat the way you and I might understand it; rather it’s a limited but relatively high number songs and it is based on a download model, not subscription. 

Nokia rejected the pricing reports, telling IDG that it “is not true. We are not paying that amount to any record label.” But it also appears the company was replying to reports that the fee would be paid for every handset, which is not the case. The company declined to provide any specifics.

Nokia has a music event next week, which could shed some light on Comes With Music—although probably not these kind of details.

Posted in: Companies, Nokia, Entertainment, Mobile Music

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mocoNews.net is a news site covering the business of mobile content.

Rafat Ali
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Staci D. Kramer
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Tricia Duryee
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Matt Kapko
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