"Def Jam That Mobile Phone!"

It was announced today that Sony Ericsson announced they will be private labeling a phone for Def Jam records. The device will come pre-loaded with...you got it right...music.

“It’s about accessing a new market. For years and years the music industry has been about selling either pieces of plastic or units of music, and most certainly for us to be able to enter into the hardware marketplace and to be able to take both commercially and in terms of a marketing tool for our artists a piece of the action it’s very exciting.”

This model no doubt was by inspired Sir Richard Branson and Virgin Mobile. Also getting on the game is record honcho Doug Morris. He also realized that selling devices is important but he'd rather take part of the subscription fee for "Total Music" than do a branded device.

While the details are in flux, insiders say Morris & Co. have an intriguing business model

"...get hardware makers or cell carriers to absorb the cost of a roughly $5-per-month subscription fee so consumers get a device with all-you-can-eat music that's essentially free. Music companies would collect the subscription fee, while hardware makers theoretically would move many more players. "

We've heard for along time that the real money is made selling devices, not music. This tactic embeds the subscription fee in the purchase of the phone. The 'upsell'...buy the phone, get FREE Music...it gives a whole new meaning to "gift with purchase"!