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Seven years ago, Apple came out with the iPod. Many thought that the expensive new device would fail not only because Apple was stepping into a new area, but also because the country was facing a recession. As we now know, the iPod was a great success for Apple and between that and iTunes, which came out in 2003 the music industry has changed as a result. Today, CD sales are still in decline, and unfortunately digital sales are not making up the loss. While the younger generations view music as free and piracy has become a large problem, a lot has been tried to try and bring in revenue. Giving away music and letting people give what they think the music is worth and subscription services are just two of the ways that the industry has tried to save itself, but nothing to this point has really worked.
It has been hard to keep the music industry and its consumers happy with one another when it comes to people getting music. Consumers want unlimited music, while companies in the industry would like to use more of a subscription basis. The issues in the past is that the industry has had with the subscription model is that the people who use them can not access the music they have already received if they do not continue to pay for the subscription.
At this time, seven years after the iPod came out , Nokia has decided to launch a product during a economical hard time. People are unsure if it will be successful, but it is a way that the industry can provide music in a way that will feel free for the consumer, yet generate revenue needed for the people and music involved. Nokia’s Comes with music model is a new one that is getting a lot of attention. When users buy a Comes with music phone, they will also be paying for a year subscription for unlimited downloads of music. The price of the subscription will be hidden in the cost of the phone. This model if it works, could be put to use in other areas of business. In the future, if this works there could be opportunities for other companies to bundle their products with a “free” music subscription, which could help it land loyal customers.