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Nokia to Buy Loudeye/OD2 August 8, 2006

Posted by David Card in Media.

Just the other day, we were talking about when/if Nokia would buy a digital music technology company. It went with Loudeye/OD2, who powers many, perhaps most, of the European digital music stores. Loudeye OD2 didn’t score so well when Jupiter was testing reputations among the European digital music value chain, but it does have the market share. (Colleague Mark Mulligan can walk you through that.)

Not much presence in the US (after merging with OD2, it sold off the old US encoding business). Over here, so far, the big guys have built their own or gone with MusicNet.

I hope Nokia doesn’t obsess over over-the-air downloads, and instead builds a slick system for incorporating existing MP3 collections (see Figure 3). That’s the secret of Apple’s success, and will be key to any music phone story as well.

Mark’s take.

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