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	September 29, 2008 Subsidized Mobile Music Subscriptions Target Entry-Level Offerings to Drive Mass-Market Appeal by Mark Mulligan with Ian Fogg, David Card, Thomas Husson

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Executive Summary

In December 2007, Nokia announced the forthcoming launch of Comes With Music (CWM), providing buyers of certain mobile phone handsets access to unlimited music free of charge for one year. Nokia will fully subsidize the cost of the music, and consumers will pay a monthly fee for continued access after their first year. Also, all music will be permanently owned but tied to the handset and to a PC. The service initially launches in the UK with Carphone Warehouse on the 5360 handset for prepay customers only. In September 2008, Sony Ericsson announced a similar service, PlayNow plus (PNP).

Key Questions

• What share of Europeans are interested in fully subsidized music services?
• What impact will subsidized services have on the relatively broader European digital music market?
• Which tactics should be deployed to drive adoption?

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