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Wednesday, February 16, 2005

Mobile Music: Microsoft and Nokia to marry

It is not a merger - now that would be news. But it is an attempt by the two giants in their respective market to cooperate in mobile music and corporate email.

"In mobile music especially it presents a worrying change of direction for the mobile phone operators, which had hoped that downloading tracks would be a real money-spinner."

Well, the marriage comes about just as I said in a recent entry to this blog, but with a different slant - which is exciting in the business world.

"Microsoft has for years been desperate to get into the fast-growing mobile phone market, while Nokia, the world's largest maker of mobile phones, has been fiercely defending its patch. The Finnish giant has flatly refused to produce phones using Microsoft's operating system, instead sticking with Symbian, the London-based software developer in which it is the largest shareholder.

But for its part Nokia has become desperate to gain a larger position in the business market, in which Microsoft's Windows is dominant. The success of the rival Blackberry handheld email device - which companies can integrate into existing corporate email systems - has certainly played a part in persuading Nokia that in order to get into bed with business it must seduce Microsoft.(...)"

How very exciting!

In addition, and the most talked upon part of the deal relates to the music business. "Nokia has agreed to work with Microsoft's Windows Media Player technology so digital music can be easily played on both PCs and Nokia phones - moving tracks between devices." Now, will this upset Apple? Is this directed against Apple? Or does it relate to the developing relationship between Sony and Ericsson that to develop phones based on the famous Walkman brand, which people will be able to fill with their music library?

(By Asia Business Consulting)