Nokia on Tuesday announced a deal with Warner Music Group to make the label's music catalog available to the phone maker's users via its digital music store and its pending music exploration service.

The agreement marks the latest effort from a company in the music business and a major player in the mobile market to attempt to spur demand for full-track downloads on cell phones.

On Monday Verizon Wireless and music subscription service Rhapsody announced a deal that made Rhapsody's five million song, DRM-free library available to Verizon's subscribers. (see Verizon Wireless, Rhapsody Make Mobile Music)

 

Apple has a mobile music relationship with AT&T, and last October AT&T and Napster announced a similar deal.

But despite rosy projections for mobile phones as a mass market music medium, the demand for mobile music has been disappointing.

In 2007 worldwide spending on mobile music was $3.4 billion but only a quarter of that, $850 million, came from full-track downloads, according to eMarketer. Most music sales came from ringtones and ringback tones.

"We are in uncharted territory here because nobody knows what the right business model for this market is. It could be free downloads, ad-supported downloads. We just don't know what will be the wave of the future," said Paul Verna, an analyst with eMarketer.

 

The Nokia-Warner deal allows people to sample, add to wish lists, or purchase music either via a compatible Nokia cell phone or from their PCs. Purchased songs can also be transferred between a PC and a compatible Nokia device, regardless of which device was used to buy them.

Later this year music fans will have access to Nokia's Comes With Music, a service that allows consumers to explore and download music from three of the four major labels for a year for one price.

At the end of the year subscribers will be able to keep their selections in their permanent library. Users will be able to access music from Universal Music Group, Sony BMG, and now Warner Music Group.

 

There were reports that Warner Music had serious concerns about Nokia’s copyright management and the talks between the two stretched for almost a year.