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Streaming Music is Preferred by Mobile Users

Several factors point to rapidly increasing consumer acceptance of mobile video and music multimedia services from wireless carriers. Interest in mobile video has inched up during the past three years but streaming music still leads the way, reports In-Stat.

Streaming music offers many marketing benefits because it is most like familiar and successful mobile consumer services, the high-tech market research firm says. One plus for mobile phone service providers is that streaming is not subject to the same Digital Rights Management (DRM) issues involved with music file sharing.

"Streaming music, which could be marketed like satellite radio services, such as XM and Sirius, holds the most interest of all mobile multimedia for consumers, and it may be easier to deliver than video," says David Chamberlain, In-Stat analyst.

In-Stat's research found the following:

- According to three years of In-Stat surveys, consumer interest in mobile video is increasing, albeit not as quickly as interest in mobile music. In 2006, 14.2 percent of respondents could be considered likely adopters of mobile video.

- In-Stat forecasts that revenue from mobile video for entertainment purposes could grow to over $6 billion per year by 2011.

- In the In-Stat mobile multimedia consumer survey, 44 percent of respondents who own music-playing handsets have not added any music files to their phones.

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