Keeping track of digital music

With the much-hyped Qtrax free music service failing to come up with the goods at the Midem music conference in Cannes this week it was left to the mobile phone manufacturers to get attendees excited about the future of digital music. John Collinsreports.

While Qtrax claimed to have done deals with all the major music labels, Sony Ericsson has completed a deal with 10 labels, including three majors, that will see an additional five million tracks added to its PlayNow Arena service. Initially launching in Scandinavia, Irish music lovers should be able to download music, games, ringtones and wallpaper directly from the service sometime before the summer.

Sony claims its service differentiates itself by ensuring "the majority of the content is DRM free". DRM, or digital rights management, is the software that limits copying of digital music in order to protect the interest of the copyright holder. It is, however, a major irritant for people who listen to digital music they have bought on multiple devices.

Although PlayNow Arena has been around since early 2004, like all mobile music services that facilitate "over the air" downloading, it has failed to catch the imagination of consumers.

The backing of labels such as Sony BMG, Warner Music, and EMI could change that. Games will be provided from publishers such as EA Games, Gameloft, THQ, Glu, Digital Chocolate, while PlayNow Uncut will feature new and emerging acts.

Access to the PlayNow WAP portal will be automated from new handsets. They will also feature the TrackID function, currently only available on Walkman and other high-end Sony Ericsson handsets.

Using the Gracenote database, TrackID allows users to identify songs they might hear while out and about by sampling a snippet of the music.

While Sony Ericsson's plans sound impressive, no pricing has yet been confirmed and the service will face stiff competition from the world's bestselling mobile brand, Nokia.

At Midem, Nokia executives meanwhile said the company will share revenues with mobile operators from Comes With Music, its service whereby handsets come with one year of unlimited access to millions of tracks included in the purchase price. "In those cases where we co-operate with operators, there will be an arrangement so they can get a piece," said Tero Ojanpera, a Nokia executive vice-president.

Nokia has only signed up one of the majors, Vivendi Universal, for its service, compared to the three backing Sony Ericsson.

Nokia's shift into services has caused concern among phone companies about how revenue is spread among the players. "A lot of phone companies have been doing some phones with music, but they have not been revenue drivers for the music industry," said Ojanpera.

"Creating a new business that will be worth, in years to come, billions of dollars, is something completely different."

Tracks downloaded from Nokia will be protected by DRM. While users will be able to share music files between their handset and computer, the files will not be transferable between computers. Ojanpera declined to say what the cost of the phone and music bundle will be.