Nokia signs Sony BMG for free music offering

Nokia will offer free 12-month access to music from artists of Sony BMG, the world's second-biggest label, to buyers of its particular music phones, the world's top cellphone maker said on Tuesday.
ast December, Nokia unveiled a similar deal for its "Comes With Music" phones with the top record label Universal.

"Comes With Music is expected to launch in the second half of 2008 on a range of Nokia devices in selected markets," Nokia said in a statement.

Nokia gave no financial details.

Sony BMG, home to artists including Beyonce, Bruce Springsteen and Celine Dion, is jointly owned by Sony Corp and German media group Bertelsmann AG.

The new music offering from Nokia -- the first cellphone maker to push heavily into content -- would differ from any other package on the market as users can keep all the music they have downloaded during the 12 months.

Such unlimited download models could offer a shot in the arm to the music industry, which is struggling to find ways to make up for falling CD sales.

Nokia said it expects all top labels to sign up for "Comes With Music" offering.

"We are quite confident that we will have all the labels at the table for Comes With Music. We are progressing in those negotiations," said Liz Schimel, head of Nokia's music business.

Sony BMG joins Universal in offering catalog on Nokia phones

Sony BMG is joining Universal Music Group in allowing users of select Nokia mobile phones access to its entire music catalog later this year.

Nokia Corp.'s "Comes With Music" program will allow users who buy select cell phone models to download any song from Sony BMG's catalog onto their phone or their computers during the first 12 months of owning such a device. Nokia announced a partnership with Universal last fall, and now has brought Sony BMG aboard.

"When you give consumers the key to the candy store without any limitations, there's a lot more opportunity for discovering music that you might not have found before," Thomas Hesse, president of global digital business and U.S. sales for Sony BMG Music Entertainment, told The Associated Press on Monday. "We think this will energize the discovery of music."

Nokia said the phones should be available in the U.S. by the second half of this year. While fans would be able to download an unlimited number of songs by way of their phone or on their computer from hundreds of thousands of tracks, they would not be able to burn the music to a CD or use it with iTunes, Hesse said. However, after the year is over, the music fan can keep the music.

"It's not like some other subscription services where you lose everything," said Tero Ojanpera, Nokia's executive vice president, entertainment and communities. "Here you can keep everything. This is like really getting access to a store where you can really now explore freely."

Ojanpera didn't disclose the price range for the phones, but said they would vary according to the model.

"PS3 Virtual Universe will Be Late": Says SONY

Sony's game unit said Tuesday it was delaying for the second time the launch of an online virtual universe for the PlayStation 3 because the service needs further development.

"Home" had originally been scheduled for launch in late 2007 but was delayed until early 2008. Now Sony Computer Entertainment Inc. plans to open up an early version of the virtual universe in the second half of 2008.

"We understand that we are asking PS3 and prospective PS3 users to wait a bit longer, but we have come to the conclusion that we need more time to refine the service to ensure a more focused gaming entertainment experience than what it is today," said the head of Sony's game unit, Kazuo Hirai.

The delay is another setback to Sony, which has much riding on the PS3 but faces fierce competition from Microsoft's XBox 360 and Nintendo's Wii.

Sony has said previously that the free service would allow PS3 users to set up an apartment for life-like virtual characters, or avatars, who can invite friends over, share pictures and videos, and play online games.

Users can personalise their virtual home with furniture, art and other items and chat through audio or video links.

The service is seen as a cross between social community website MySpace and Linden Lab's Second Life, which allows "residents" to build homes, create vehicles, nightclubs and stores, and to communicate with instant messaging.

The Los Angeles Times reported on Monday that Sony was preparing to launch a separate online video service for the PS3 as soon as the US summer, quoting unnamed studio executives familiar with the plan.

Video game firm THQ sees buying opportunities

THQ Inc (THQI.O) is looking at buying other video game developers, but the publisher of games like "Cars" and "Saints Row" can grow without making acquisitions, Chief Executive Brian Farrell said on Thursday.

"We are seeing some opportunities in the marketplace given the two transactions going on," Farrell told Reuters in an interview at a company event to preview upcoming games.

He was referring to the pending merger between Activision Inc (ATVI.O) and the games unit of Vivendi (VIV.PA), and Electronic Arts Inc's (ERTS.O) $2 billion offer for Take-Two Interactive Software Inc (TTWO.O).

"It's going to create some opportunities because we are actively looking at every developer, every license out there and with our size now we can be more aggressive than larger, slower firms," Farrell said.

THQ has already moved this year to bolster its product lineup. Earlier this week, it said had bought Elephant Entertainment, a maker of casual and online games, for an undisclosed amount.

In January, THQ bought Big Huge Games, a studio focused on strategy games such as "Rise of Nations." Farrell said that team is focused on making a new role-playing game to fill a gap in THQ's product lineup.

Asked if THQ was looking at buying smaller development studios or publicly listed firms, Farrell said: "M&A is not a required or necessary thing in order to grow."

Analysts have said the recent merger activity in the video game industry is partly a result of development budgets for new games soaring into the tens of millions of dollars, putting pressure on smaller firms with limited financial resources.

Farrell said the video game industry was still growing fast despite concerns that a broad U.S. economic slowdown could hit consumer spending.

"We haven't seen any signs of slowdown," Farrell said. He said strong year-end holiday sales of new gaming hardware like Nintendo Co Ltd's (7974.OS) Wii console, Microsoft Corp's (MSFT.O) Xbox 360 and Sony Corp's (6758.T) PlayStation 3.

This year, THQ is banking on new games like criminal action title "Saints Row 2" and "WallE" based on the upcoming Disney/Pixar movie to drive growth after a disappointing 2007 forced it to kill off lackluster franchises like "Stuntman."

He declined to comment on specific financial forecasts, saying THQ would give an updated outlook when it reported results for its fiscal fourth quarter ended in March. The company previously said it expected a net loss of 13 cents per share on sales of $200 million.

THQ shares have risen 23 percent over the past month but its stock is still down 35 percent from a year ago.