Something really interesting is happening in the tech business, and while it’s currently centered around the music industry, it could soon cross into film/video as well. BusinessWeek is among the sources reporting that Nokia has acquired Loudeye, a Seattle-based music download company.
The goal? Speculation drifts to the conclusion that Nokia is trying to develop a successful wireless music service. In other words, Nokia would use the resources it has already collected over the years to beat Apple’s recent exploration into the world of wireless music devices, courtesy of mobile providers such as Cingular. And, while the iPod is an amazing success, one analyst notes that, “Nokia already sells as many music phones as Apple sells iPods.” And, anyone with even a hint of knowledge about overseas mobile devices, knows that music/video hardware is the future. While music may be the primary goal for Nokia’s acquisition of Loudeye, could video be next? If they really are going after Apple, then that would be a future step. Here’s an excerpt from Olga Kharif’s full report:
Thanks to the Loudeye acquisition, Nokia might have the technology and content components it needs to effectively compete with iTunes. After all, Loudeye has a catalogue of 1.6 million tracks and has more content rights to local music globally than any other music distributor in the world—including iTunes. “No one is close to that,” says Murray Arenson, an analyst with Ferris, Baker, Watts. And Nokia’s ownership could, potentially, make more music execs willing to work with Loudeye. “In digital music, it’s all about intellectual property rights,” says Jari Honko, an equity analyst with eQBank in Helsinki. “Nokia has greater power than smaller companies to protect [them].”