Nokia’s Services Strategy
Nokia’s current strategy is to try to make services as important, if not more important, than the devices themselves. This can already be seen with Ovi, the (expensive) purchasing of Navteq and Comes With Music.
However, early indications are that Nokia is having difficulty attracting Comes with Music customers. Mobile reports that…
"Carphone Warehouse staff say Nokia’s music service is not selling"
Here are some more insights…
"Unable to secure widespread operator backing for a service that networks deemed to work against their interest, Nokia partnered with Carphone – a proven channel to create excitement around a proposition, generate footfall and get the tills ringing."
"Nokia attempted to generate more footfall with a vast TV, press, outdoor and digital advertising campaign in excess of £10m for the music service in the run-up to Christmas."
Comes With Music was released in October 2008 on the Nokia 5310, a low-end, prepay handset. It’s to be expected that this type of user might not be interested in premium services. It was previously my impression that Comes with Music would launch (in most markets) with the 5800. However the 5800 XpressMusic phone will not have the Comes With Music service when it comes out later this month.
"The music service will eventually be launched on the new touch-screen 5800 but customers will have to wait if they want the service and handset together. Nokia claimed this week that the reason for holding back the service on the Nokia 5800 was to avoid any glitches on its new handset."
This surprises me because the 5800 has already been released for a few months in some limited markets.
I suppose all this is to be expected. Nokia’s core business has been phones, not services. Nokia is still learning and experimenting how to release and market new services. Even when the services are ready and on the correct devices, it seems they will then have an uphill struggle getting network operator backing.
