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A Change Is In Store
28-10-2008
Legal music download sites have finally received the licences to bring tunes to mobile devices the UAE
“There are only two record stores left in the US,” proclaimed will.i.am, founding member of the Black Eyed Peas, at London’s Koko club earlier this month. “A Virgin Megastore in New York and a Virgin Megastore in Los Angeles.”
It’s an exaggeration, for sure - my research tells me there’s also one in Orlando - but there’s no denying the traditional record store has been hit hard by the advent of downloadable digital media, which has seen music lovers get hold of their favourite tracks on the internet, often without paying a penny.
And now will.i.am, a guest of Finnish communications giant Nokia, was helping to deal another blow to the old industry heavyweights. Or was he? As digital music has taken command, the major record labels have been forced to adopt an oft-preached philosophy: “If you can’t beat ‘em, join ‘em.”
Music retailers in the UAE - Virgin Megastore included - have been somewhat insulated from the side of the digital music revolution with the potential to harm their business. They do well on iPod sales, and since you can’t buy from Apple's popular iTunes store with a UAE-registered credit card, they probably still do well on CD sales too. Legally purchasing and downloading music online within the UAE itself has been problematic... until now.
Getmo Arabia (www.getmo.com), a joint venture between Arvato Middle East and the Abu Dhabi Media Company, went live on October 19 with one million downloads on offer. And late last month, Nokia announced it was launching an online music download portal especially for the UAE in December.
The reason it needs a UAE store - the reason people can’t just visit one of the 11 existing Nokia music stores or purchase from rival iTunes over here - is all to do with rights.
“The key thing is that the licences you get from the content providers, whether that’s the label or the publisher, are territory-specific,” David Williams, Nokia’s director of music service content and business operations, told 7DAYS in London. “You have to have the licences to be able to sell that music in that territory.”
With Nokia and Getmo having gone further than Apple and got all the necessary licences in place, music is finally on sale online.
Nokia said its users can pay per download of a track or a monthly subscription - in dirhams, meaning the whole ‘UAE-registered credit card’ thing, dismissed by Williams as “a technical issue” is not going to pose a problem.
All four major international music labels - EMI, Warner, UMG and Sony - are on board for the UAE launch, but for Williams the idea of having a local portal goes beyond the rights aspect. “We want local UAE content in the UAE,” he said, plegding to make the store as “relevant as possible”.
To this end, Nokia has also signed up Saudi Prince Al-Waleed’s Rotana Records, the Middle East’s largest label and a vast source of Arabic music, and on announcing the store also promised Bollywood content and “thousands of independent labels”.
“It will be in the plan for the UAE store to have a good selection of what local means to the local population,” said Williams.
Not content with a single arrow to the core of Apple’s business with a twelfth music store, Nokia has completed a double-pronged assault on Steve Jobs’ firm with a new slick handset that has been touted by the media as a serious rival to the iPhone, both versions of which are still not available for purchase in the UAE.
Known as the Nokia 5800 XpressMusic, the phone is the company’s first mass-market device to feature a touchscreen.
Nokia had gone to the trouble of flying journalists half way around the world to London to show off its new toy, which will be available in the UAE in December for around $300. But that wasn’t the only product will.i.am, Williams et al were promoting.
The UK is the first market for Nokia’s ‘Comes With Music’ scheme, under which for a period of one year, unlimited access to Nokia’s music library can be included in the price of selected new handsets, including the 5800 XpressMusic. The most basic, though, is the Nokia 5310 XpressMusic, which ‘comes with music’ for £130 and went on sale in the UK on October 16. And users can keep the music downloaded even after the year is up.
Nokia hopes it will be able to spread the ‘Comes With Music’ concept around the world in due course, though separate licensing issues will have to be considered.
“Our strategy is that we establish ourselves in a particular territory with these pay-per-download stores,” Williams explained. “Those are compatible with a huge number of Nokia devices that have digital rights management technologies. Once those have been developed and we have the planning in place, ‘Comes With Music’ in general will follow as a secondary level for those stores.”
With Apple out of the picture, both Getmo and Nokia’s music.nokia.ae portal look set to be a hit with UAE music fans. Nokia remains tight-lipped about how much of Apple’s market share it has eaten into since launching its music store in the UK around one year ago but reported that 35 per cent of people were downloading direct to mobiles, not via PCs.
And if handsets really are the future for music, the record labels might want to pay close attention to the ‘Comes With Music’ progress. After all, any sale means guaranteed royalties for them in a lump sum.
“If we were to make something like nine per cent of our music devices ‘Comes With Music’ devices, the music industry could equal the overall digital music revenue it earned last year,” Williams claimed.
“That’s why the record labels and publishers want to work with us on so many things. They see the opportunity of scale here and understand that as we take devices into the market, they benefit from that scale. It’s an enormous opportunity to reverse the decline in their music sales.”
For more information visit www.music.nokia.com
 
http://www.7days.ae:80/storydetails.php?id=68364    &page=local news&title=A Change Is In Store
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