The Wall Street Journal-20080128-Sony Ericsson Music Store to Challenge Apple

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Sony Ericsson Music Store to Challenge Apple

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LONDON -- Mobile-phone company Sony Ericsson unveiled content deals with three of the world's four top music labels, ahead of the launch of its online-music store in May.

Sony Ericsson, a venture between Japan's Sony Corp. and Sweden's Telefon AB L.M. Ericsson, said its upgraded PlayNow Internet and mobile-phone service will be available in 30 countries world-wide by year end. It will offer more than five million music tracks, competing with Apple Inc.'s iTunes Store and Nokia Corp.'s Ovi portal.

Sony Ericsson at Midem, an international music-trade show in Cannes, France, announced deals with 10 record labels, including Sony BMG, Warner Music Group Corp. and EMI Group Ltd.

It also has struck deals with Hungama, from India, and the Orchard, popular in Latin America and Asia -- flagging Sony Ericsson's target of large emerging markets.

Sony Ericsson will face tough competition from Apple, which dominates the digital-music market, having sold more than four billion songs, said Ben Wood, an analyst at United Kingdom research firm CCS Insight.

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