Sign up to The Irish Times Archive (1859 - 2008)My Account »

Nokia has struck a deal with Sony BMG to offer free 12-month access to the label's tracks in its "Comes with Music" service, adding to last December's deal with Universal.

Having the world's two largest labels on board is set to help Nokia get smaller music companies on board, challenging the dominant pay-per-track sales model for digital music.

"Adding Sony BMG to Universal is a significant step and we expect the other major labels to move in this direction before the end of the year," said Ben Wood, director of research at industry research group CCS Insight.

Nokia said it would sell a range of at least three new music phones with the offering from the second half of 2008. It expects all top labels to sign up.

"We are quite confident that we will have all the labels at the table for Comes With Music. We are progressing in those negotiations," said Liz Schimel, head of Nokia's music business.

The new music offering from Nokia, the first mobile phone maker to push heavily into content, would differ from any other package on the market as users can keep all the music they have downloaded during the 12 months.

Sony BMG, home to artists including Beyonce, Bruce Springsteen and Celine Dion, is jointly owned by Sony and German media group Bertelsmann.

The companies gave no financial details on the deal.