OD2 (On Demand Distribution), the fully-owned international subsidiary of Seattle-based Loudeye Corp, has launched a new mobile-phone payment system for digital music in Europe.

OD2 (On Demand Distribution), the fully-owned international subsidiary of Seattle-based Loudeye Corp, has launched a new mobile-phone payment system for digital music in Europe.

The system, supplied by music service provider Mobster and created by New York-registered Norwegian company USArtPhone, has initially launched in Norway. It will later be rolled out to Sweden and other Scandinavia markets before expanding into the rest of Europe, according to London-based OD2.

Consumers in Norway can use their handsets to pay for songs that are then downloaded to their PCs. More than 160,000 paid-for titles from OD2's pan-European copyrighted catalog are available on an a-la-carte basis.

According to Sverre Fjeldheim, USArtPhone's founder/CEO, "For Norway, the only major label missing from our repertoire is Universal Music. However, the move there also makes us the only local digital-music service offering music by major international artists." Talks with Universal are ongoing, Fjeldheim says.

Users can purchase a selection of digital tracks for NOK29 ($4.28) via targeted advertisements in consumer publications and radio stations.

"The tracks featured will be genre-based, depending on the magazine's readership or the audience targeted by the radio station," Fjeldheim explains.

Once Mobster receives the code, payment is made through the customers' mobile bill or pay-as-you-go transactions.

OD2 and Mobster are in talks with Nordic TV program-makers on creating similar codes to accompany music videos.

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