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Nokia Gets Loudeye to Compete with Apple

Posted Aug 13, 2006 at 08:04PM by Victor B. Listed in: Cellular News, Cellular Phones Tags: Loudeye
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nokia

In a revived attempt to compete with the Apple iTunes, Nokia has announced plans to buy the digital music distributor Loudeye for $60 million.


With Nokia's sales of music-enabled phones numbering around 15 million, this seems to be a logical step to getting an even bigger share in both the mobile and digital music markets.

Loudeye, the company Nokia is acquiring, has over 1.6 million tracks under its belt, catering to over 20 countries. The large selection should be a pretty good indicator that Nokia plans to be a serious contender in the digital music wars.

A good thing about this deal is the chance for expansion. Though its service is centered on Windows users, there's a chance that the arrangements with Nokia will also expand the user base of Loudeye's distribution to Apple computers, even as it directly competes with the owners of the iTunes service. Nokia and Loudeye plan to seal the deal by the end of 2006, and have a business model for their music service come 2007.

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