June 16, 2005
../ Ericsson and Napster Introduce Music Service
Napster and Ericsson have partnered on a new mobile music download service
that will debut in Europe in the next 12 months. The companies are claiming that this will be the first fully integrated digital music service for
The announcement has taken some of the wind out of the sails of the proposed Motorola/Apple
Computer deal that has been batted about during the last few months. Analysts have confirmed that several hurdles still need to be jumped before the
service can be offered to carriers. The initial problem was that the proposed iTunes Mobile
service would cut out the middlemen, i.e. the carriers, from the download fees, and the
cellular services, like the mob, don't like to be cut out of anything.
The Napster and Ericsson model cuts the carriers in on all revenue streams. Napster/Ericsson
plan to offer both individual downloads and subscription services which will enable consumers
to have complete access to their music libraries. The Napster/Ericsson will be offered to all mobile carriers and describes itself as a flexible solution for users
of both 2G and 3G networks. After Europe, Napster/Ericsson plans to rollout the service to Asia and
Why team with Napster? Ericsson's President and CEO, Carl-Henric Svanberg feels that Napster
is "the biggest digital music brand in the world" and Gives Ericsson "exposure to the largest music catalog available, which will not only increases our customer's
consumer offerings and revenues but substantially strengthens their own brand image as well."
The Future: While
Apple and Motorola bicker with each other and the carriers they want to do business with, Napster/Ericsson has suddenly stepped into the spotlight with a comprehensive
solution that seemingly meets everyone's demands. But can today's cellular networks reliably handle digital downloads?
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