It’s not a complete failure, apparently, as Nokia will continue to support the service in six countries, including China. But it will pull the plug in 27 other countries. (It never arrived in the U.S.)

The idea, pushed in large part by Vivendi’s Universal Music Group, was that consumers would pay a premium for certain Nokia phones and get access to all-you-can-eat music.

A couple of problems, per Reuters: Consumers didn’t want it, and carriers didn’t support it.

It’s possible that the Nokia plan was sunk because of a complicated digital rights management scheme that more or less locked the music onto the phones. But it may be that people just aren’t that interested in paying for all-you-can-eat music, whether that payment is bundled into the price of the phone, or via a month-to-month subscription service.

In the U.S., there is no shortage of the latter–Rhapsody, Best Buy’s Napster, MOG, Rdio, Thumbplay, etc.–but they haven’t caught on despite years of effort. In Europe, for now, Spotify seems to be gaining some traction–people familiar with the company say it now has one million paying subscribers, up from 750,000 last fall, but that’s still not mainstream.

Subscription services were supposed to get more popular once they started playing nicely with Apple’s iPhone, but that has kicked in over the past couple of years without any noticeable bump. Now subscription advocates are pining for another boost from Google, which they imagine will end up partnering with one of the services instead of building its own.

And if Google wanted to, say, provide every Android buyer with a couple months of free subscription music, they argue, then subscriptions might finally catch on.

Could be! But I wouldn’t count on it.

However, even with the masses descending upon Las Vegas this week, Cricket has decided to delay the Muve music service and the launch of its first Muve-compatible phone.

Cricket had hoped to launch service in Las Vegas this week along with a number of other markets later this month.

Under its revised time frame, Cricket plans to launch the service in Las Vegas later this month, add nine more cities in February and roll it out to the rest of its markets this spring.

Although all the necessary licensing is in place, Cricket spokesman Greg Lund said that the company needed the extra time to ensure all of the software bugs were ironed out before it started asking customers to pay for the service.

“It’s got to be just perfect,” Lund told Mobilized in an interview at CES in Las Vegas.

The company, best known for its prepaid phones, is offering a new service called Muve Music, which includes the cost of unlimited music downloads as part of a $55 monthly cellphone plan that also includes unlimited talk, text and Web. Basically, Muve adds about $10 to the cost of the monthly cellphone tab (which, incidentally, is about what one can expect to pay for the typical subscription music service).

The music is downloaded directly to the cellphone and is accessible as long as you remain a subscriber. From a technology standpoint, the service works by transferring the music to a secure partition of a 4GB digital memory card in the phone; Cricket says that partition can hold about 3,000 songs.

Cricket is launching the service next month with a single compatible phone–a color touchscreen feature phone known as the Samsung Suede, which will sell for $199. The service will first be available Jan. 6 in Las Vegas, with about 10 of Cricket’s other markets due to come on board later in the month.

What makes the service interesting is the approach–there is no tie to a PC whatsoever. Music comes to the phone, lives on the phone and is managed on the phone. In an interview, Cricket Vice President Jeff Toig said the service is geared to Cricket’s base of customers, many of whom don’t have a PC and broadband connection. It also allows them to get their music the way they do their other cellphone services–by paying in cash at the company’s retail outlets, thereby eliminating the need for a credit card.

The downside, of course, is that the music can only be played on the phone, though the phone can connect to a car stereo or external speakers over bluetooth or via a 3.5mm cable.

On the plus side, Muve doesn’t add much to the cost of a cellphone plan and eliminates some of the complexity traditionally associated with digital music. In addition to the ability to download and play tracks from all four major music labels, Muve subscribers can set any track to be either a ringtone or ringback tone (the music heard by callers while they are waiting for someone to answer).

Nokia tried a somewhat similar approach with its “Comes With Music” phones, which debuted in 2008. In that program, the cost of the music subscription was included in the price of the phone rather than in the monthly cellphone bill. Others, such as SpiralFrog, have tried to create services relying on advertising to subsidize the cost of providing music free to the end user.

Toig said that his customer base is one that typically isn’t downloading music from iTunes at 99 cents a pop, but includes a fair number of people that illegally download music from file sharing services.

The new service, he said, allows them to have a better experience without having to spend much more than they already are, while giving the record industry a chance to reach digital music customers they are largely missing out on today.

Unlike other services, which Toig said bank on the fact that people have access to a computer, Muve tries to make it easy to discover and download music directly from the phone. Customers can subscribe to curated feeds of music that get automatically updated, as well as find and download albums by name. A built-in social network allows them to see what their friends are listening to (assuming they also have a Muve-compatible phone).

“Nobody has done mobile music right,” Toig said.

Cricket won’t say how much of the incremental $10 in monthly revenue it is getting goes to the labels, but Toig said part of the bet is that Cricket will be able to reach customers that it otherwise could not.

“We’re obviously not doing this for a few percent,” he said. “We think this has appeal beyond our base to segments Cricket has not appealed to before.”

Comes now Jeff Bronikowski, who spent 11 years at Universal Music Group, the world’s biggest label, and left last year.

In an interview with Billboard, the former SVP of “global digital initiatives” explains concisely why his former employer and the other big guys are just playing out the string: CD sales are wasting away, and the digital boost they were counting on simply isn’t big enough.

Download growth is slowing down, dominated by one retailer. The ancillary revenue streams like ringtones are in decline, and the new possibilities like Nokia’s Comes With Music haven’t panned out yet either.

To be fair, Bronikowski then offers a qualifying, semihopeful note. Which he needs to do, as he’s still working with the music labels–now as the head of Yahoo’s (YHOO) small music unit.

And I occasionally talk to someone in the recorded music business who still thinks the labels can pull it off–maybe Spotify will really work or maybe Apple’s (AAPL) cloud strategy will help boost sales. Etc.

You never know! They could be right. Sony (SNE) even reported an uptick in sales last quarter. But after a decade-long slump, it is getting awfully difficult to find a bona fide optimist.

Such a glum post, so early in the morning! Time to liven it up, per request. Thanks to Tristan Mahr.

That seemed plausible a few years ago, when consumers embraced the ringtone trend and shelled out $2.50 to buy a couple seconds of music for their phones. But trend is the operative word here–ringtone sales have been flattening for some time. And hopes that consumers would use their phones to buy music over the air via iTunes-like stores haven’t panned out, either.

New plan: Tether music sales directly to the sale of mobile phones, via bundling plans like Nokia’s “Comes With Music.” That program, which just launched in the U.K. last month, makes an interesting proposition: Buy a $229 Nokia handset, and you can download as much music as you want from the big labels–Warner Music Group (WMG); Sony (SNE); Vivendi’s Universal Music Group and EMI Music Group–for a year.

If that works, it’s a double win for the business: It gets consumers to actually pay for digital music and it gets them to pay via an outlet that’s not Apple’s iTunes, which is a big deal for an industry trying to reduce its dependence on Steve Jobs and company.

But it only works if people are actually buying new phones, period. And Nokia (NOK) is now saying that looks a whole lot less likely for the foreseeable future.

This morning, Sony BMG became the second record label to jump on board the Finnish phone giant’s Comes With Music offering, which–when it launches in the second half of 2008, will package mobile phones with a year of unlimited access to music. There are, however, certain caveats to that value proposition, as I pointed out last December:

Though Comes With Music does indeed permit owners of certain Nokia cellphones to download as many songs as humanly possible in one year (with no per-song data charges), transfer them to a PC and keep them at the end of that time, they must pay a per-song usage fee to burn them to CD. What’s more, the songs are wrapped in Microsoft’s (MSFT) ironically named ‘Plays for Sure’ digital-rights management scheme, which prevents them from being played on the iPod, Zune, etc. Finally, another 12 months access to the music catalog requires the purchase of a brand new phone.”

Clearly, Sony, like Universal (VIV.PA) before it, doesn’t see these issues as off-putting to consumers. “When you give consumers the key to the candy store without any limitations, there’s a lot more opportunity for discovering music that you might not have found before,” said Thomas Hesse, president of global digital business and U.S. sales for Sony BMG Music Entertainment. “We think this will energize the discovery of music.”

It might energize Sony BMG’s bottom line a bit as well. When Universal first signed up for Comes with Music, sources close to the company said that Nokia would pay the label up to $35 for every phone that offers access to its library. Nokia subsequently denied it was paying that amount, but it’s definitely paying something–to Universal, Sony and whatever other labels it manages to line up for the service.

This morning, Sony BMG became the second record label to jump on board the Finnish phone giant’s Comes With Music offering, which–when it launches in the second half of 2008, will package mobile phones with a year of unlimited access to music. There are, however, certain caveats to that value proposition, as I pointed out last December:

Though Comes With Music does indeed permit owners of certain Nokia cellphones to download as many songs as humanly possible in one year (with no per-song data charges), transfer them to a PC and keep them at the end of that time, they must pay a per-song usage fee to burn them to CD. What’s more, the songs are wrapped in Microsoft’s (MSFT) ironically named ‘Plays for Sure’ digital-rights management scheme, which prevents them from being played on the iPod, Zune, etc. Finally, another 12 months access to the music catalog requires the purchase of a brand new phone.”

Clearly, Sony, like Universal (VIV.PA) before it, doesn’t see these issues as off-putting to consumers. “When you give consumers the key to the candy store without any limitations, there’s a lot more opportunity for discovering music that you might not have found before,” said Thomas Hesse, president of global digital business and U.S. sales for Sony BMG Music Entertainment. “We think this will energize the discovery of music.”

It might energize Sony BMG’s bottom line a bit as well. When Universal first signed up for Comes with Music, sources close to the company said that Nokia would pay the label up to $35 for every phone that offers access to its library. Nokia subsequently denied it was paying that amount, but it’s definitely paying something–to Universal, Sony and whatever other labels it manages to line up for the service.