Sony Ericsson Comes With Music…

September 10, 2008

So, after Nokia, now Sony Ericsson starts with this subscription, or better, bundling pricing model (see Financial Times).

As you know I’m a fan of these business models… they “feel like free” and if there is enough added value they will have a chance to compete with the “free” alternatives. A crucial feature will be, if there is any portability of the music. Is there any chance to get this music from my mobile phone also on my big speakers in the living room? Is there any chance to hear the music in the car? et cetera… but of course the most important point is the price question: Where is the price point to have still this “feeling” “like free”?

Rafe Blandford did a bit of pricing research and showed that Nokia’s Comes With Music adds about 70 to 85GBP (US$123 to $150 or 85 to 105 Euros) to the price of a handset for a year music. That´s less than 10 Euros per month. For someone who is not an active “darknet” downloader and maybe iTunes customer… this is a reasonable price, if there is this mentioned portability. We will see.

Well, now we are waiting on the reaction of apple. When does the ipod or iphone come with a music subscription? I hoped Steve would announce it at his September keynote… but unfortunately not. Anyway there are this rumours it will come soon and the price will be around $130 per year…
It would be a lot of fun to use this new recommendation system “Genius” on ITunes 8 with a subscription model on a iphone…

The time of “a la carte models” in the music industry is ticking…


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