Technology | Media | Telecommunications

Wednesday, December 12, 2007

Music on Mobile Phones Forecast to Grow

Music delivered to mobile phones via service provider networks is on the rise, currently representing around 13 percent of global recorded music retail value.

A new industry report from Understanding & Solutions forecasts an increase to almost 30 percent by 2011, amounting to $11 billion and helping to offset some of the decline in packaged music revenues.

"Alongside online, mobile music is essential to the future of the music industry," says Understanding & Solutions Consultant, David Sidebottom.

Japan, closely followed by the USA, has the most efficient mobile music landscape -- both countries have a concentrated mobile phone operator base and a large pool of potential subscribers, providing economies of scale for the music companies.

In the fragmented European market, some operators have become less aggressive, as they can't make money directly from selling full track downloads, but this will pave the way for off-portal and third party service providers.

Most new handsets now come with built-in music functionality, and recent developments from manufacturers and operators have helped improve the user experience when searching for, purchasing and using mobile music. However, interfaces and software need to continue to improve to make the mobile experience comparable with online.

"Looking to emerging markets, mobile could become the number one platform for music, where packaged CDs haven't gained traction due to piracy and lack of hardware ownership," continues Sidebottom.

"Both China and India are showing large revenue gains, which are being driven by strong mobile subscriber growth and the status associated with music-related personalized mobile products."