3GSM Nokia and Microsoft signed two significant deals today, with Nokia's executive VP for enterprise, Mary McDowell, hinting that there would be more to come.
Nokia is partnering with LoudCloud to allow carriers to build branded DRM music download services. As part of the deal, Nokia phones will play back Windows Media files, but only through a complex transcoding which takes a Windows Media file and converts it to an AAC format.
When it comes to music, said a Microsoft executive in Cannes today, "We should not have borders or barriers." Quite right, although the DRM regime that Microsoft puts in the user's way is all about barriers. A sweaty executive called Michael Nash from Warner Brothers Music apologized for not being present to bless the partnership - "I'm at the Grammys!", he said - and didn't blink once.
Long term Nokia has been doing some serious thinking about digital downloads, and must be prepared to weather the poor reception such a clunky arrangement will surely meet.
