DRM Dilemma? Nokia's Music Service On Way To U.S.

digital rights management

Comes With Music lets subscribers download unlimited songs from millions of selections in the Nokia Music Store. It will roll out in the U.S. later this year, although it has already debuted in Singapore and the U.K. and will launch in Australia on March 20.

The subscription will reportedly add approximately $100 to the cost of a phone. In the U.S., that phone would be Nokia's iPhone challenger, the 5800 XpressMusic, which was unveiled here last week. Nokia, however, has had some issues with those phones in terms of faulty earpieces and difficulties with AT&T's 3G network; stores in New York and Chicago are reportedly selling Nokia's European version until the kinks are worked out.

For now, the songs in Nokia's library all are digital rights management, or DRM, protected. So a subscriber to Comes With Music can play downloaded songs on a single phone and save one copy on one computer. The songs are still playable even after the subscription expires.

DRM is used to prevent making unauthorized copies, but it is relatively easy to remove. DRM-free music has become universally accepted for individual song downloads, such as those offered by iTunes and other online stores. However, recording labels are adamant about DRM for subscription services. It's a trade-off: With iTunes' approach, users pay per song but can make duplicates. With a service like Comes With Music, customers get unlimited access to downloads but are limited to one copy each on a PC and a phone.

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In 2008, the global digital music business grew roughly 25 percent to $3.7 billion, and digital platforms now account for some 20 percent of recorded music sales, up from 15 percent in 2007, according to Channelnewsasia.com.