Consumers want access to a free, easy-to-use service with unlimited downloads but, having grown up in the age of piracy, they don't want to pay for it. Is bundling the answer?
The best example for this approach is Nokia’s Comes With Music (CWM) model. Buy a CWM handset and you get free, unlimited music downloads for a year. Of course, they aren’t really free: the price of the handset includes a subscription fee that is passed to the record companies (see article). After a year, you can pay to continue to download new tunes, or you can buy another CWM handset, with another year of free service. Thus consumers get their music; record companies get paid; and Nokia attracts and retains customers.