IF previously MP3 downloading among individuals over the Internet caused profit loss to artistes, lyricists and record labels, today the music industry has awaken to the potential of digital music.

Zulkifli says Motorola hopes to capture the market by providing more music-capable phones with accessories.

Players such as telcos and phone manufacturers are also in the loop, both offering services for music downloads at attractive prices, targeting youths and music devices.

Telcos are also cashing in on digital music. On a mobile phone, a song could be enjoyed as a music track or used as a ringtone. By setting up with their telco, users can also choose a song as a caller ringtone or let it play as background music while talking.

Of the many phone manufacturers offering music-capable phones, Motorola and Nokia are actively harnessing the potential of music as a selling point for their devices.

Motorola’s strategy for capturing the music market is by providing more music-capable phones together with accessories to the Malaysian market. Its head of marketing, mobile device business Zulkifli Mat Jusoh says Motorola has made available its flagship music phone, the MotoRokr E8, which enables quick switch between talk and music mode. Motorola also provides accessories such as the EQ series Bluetooth speakers, Motorola Bluetooth Active Headphones S9 and Bluetooth Stereo Clip Headset S605.

To promote legal downloads of digital music in Malaysia, Nokia has partnered with Universal Music to deliver high-quality tunes to consumers. The partnership involves the bundling of 100 digital music downloads from Universal Music Group into Nokia’s latest XpressMusic phones, the 5220 and 5320.

Users will receive a voucher and activation code within their newly purchased set. Using the voucher, they can download through general packet radio service or third-generation connections or download the songs through their PC at www.nokia-asia.com/musicredemption/.

Universal Music Southeast Asia’s senior vice president Sandy Monteiro says the partnership with Nokia is an advanced step for the record label in terms of catching the digital music trend. He adds that the music tracks provided by Universal Music for the partnership with Nokia are in high-quality Windows Media Audio format.

There are risks involved when one goes through illegal channels to get digital music. As Monteiro points out, “When people download through illegal channels, most of the time they do not get high-quality tracks. Sometimes, they get only part of a track. The sites that host these tracks may not be secured and users may get their PCs infected with virus.” The optimistic Monteiro believes that the music industry in Malaysia is not dying. “It is just changing and the industry needs to change with it. Consumers want their music in many forms and with them anytime, anywhere,” he says. He adds that it is up to the industry to facilitate consumers’ changing needs.

“The mobile phone is becoming a critical platform for music consumption, especially for youths. We are looking at the digital and mobile platforms as new business opportunities. For example, we try to introduce a couple of songs from an artiste as a ringtone or ringback tones to get public reaction. If the response is positive, then only we will proceed to record full albums,” Monteiro explains of Universal’s digital music strategy.

The move seems to appeal to Malaysian music lovers. Monteiro says songs from local acts such as Hujan and Aizad are perfect examples of the new business module. “Hujan recorded more than 40,000 downloads even before their album was finished.” Another plan up Universal’s sleeve is based on a subscription module. Monteiro reveals that Universal Music is offering monthly music subscriptions for its consumers in Korea, Hong Kong and Taiwan.

Hoping to bring such service here within the next six months, Monteiro says there is a need to get the price right as well as secure the right partners. The company is considering between RM5 and RM10 per month for a limited number of downloadable music tracks.

In terms of partnering to kickstart the subscription service, he says the collaboration with Nokia and its XpressMusic package is a good channel. He also cites other industry players such as telcos and local portal Gua.com.my as the right partners.

Looking at the Malaysian market, Nokia Malaysia/Singapore general manager Grant McBeath says the local music industry and consumer behaviour is right for Nokia to bring in services like Nokia Music Store. Currently, the Nokia online music portal is only operational in Australia and Singapore.