Nokia agrees to share revenue with music labels

Nokia has agreed revenue share deals with music labels for its Comes With Music product, rather than giving them a flat fee per handset.

The manufacturer will pay the labels in proportion to the amount of music downloaded from that label.

Speculation has surrounded the terms between Nokia and labels for its unlimited music service that lets buyers download as much music for free for 12 months.

Nokia has denied reports that it is paying Universal Music £17 to £41 per handset, and £50 for all the labels collectively.

Nokia’s Executive VP, Tero Ojanpera, said Nokia has the potential to grow the £2bn he says the digital music industry is worth.

The Finnish handset giant has so far signed two of the four major labels, Universal and Sony BMG. It is looking to agree a deal with EMI and Warner.

Meanwhile, Apple CEO Steve Jobs is reported to be paying the four major labels a total of £10 for each iPhone sold.