Nokia Predicts Death of Music Industry

A Nokia executive says that music device and camcorder makers would be the next industries to feel the pinch from mobile phones, saying they would see a similar market collapse as the photo industry. In 2000, the company forecasted the end of that industry, and from recent developments that looks like it is holding true.

Companies that make much of their money from photography are finding it harder and harder to stay in business as profits dry up amid the ever-increasing number of camera phones. Two high-profile companies have already thrown in the towel: Agfa-Gevaert in 2004, and Konica Minolta, who said it was leaving the business in January.

Nokia's multimedia head Anssi Vanjoki made the comments in the Monday edition of the Financial Times. "In the next 6-12 months, there will be more of these announcements. The next to disappear will be the makers of music devices and then the manufacturers of video cameras," he told the paper.

Music handsets have become more commonplace over the past year, with Nokia itself shipping some 40 million units. The shift has not gone unnoticed by the digital media industry's biggest player. Apple has agreements with Motorola to ship iTunes on select models, and is said to be preparing its own branded phone for release late this year.

The company also plans to put high-quality video recording onto more mid-range phones in the future. Until recently, such features were only available on high-end smartphones, out of the reach of most consumers.