Skip to main content

Global Market for Digital Music Consumption

Following six years of decline from a high of $39.7 billion in 2000 to just $32.1 billion in 2006, Portio Research believes that the value of the global music market is set to reverse and grow again back to $38.8 billion by 2011.

In 2006 the major mobile handset manufacturers (Nokia, Motorola, Sony Ericsson, LG and others) shipped MP3 enabled handsets in volume. At the same time, many mobile network operators (MNOs) have started to distribute MP3 enabled phones and launch OTA (over-the-air) music download services, thus creating a new global digital music consumption market.

Worldwide, the mobile services market dwarfs the music industry in revenue terms, and music companies need to be taking a very serious look at mobile operators as they may possibly become one of the biggest distribution channels to market in the near future.

In the portable digital music device market, Apple has continued to produce new models of its highly successful iPod, and while the iPod leads the market, alternative MP3 players have continued to proliferate worldwide.

In November 2006, Microsoft launched its rival digital music player -- Zune. Sales so far have not been outstanding, but this signifies a major move, and this event has brought further interest to the digital music player market. Portio expects to see in excess of 1 billion mobile handsets shipped worldwide in 2007, and almost half of these will be MP3-enabled.

With so many devices shipping, Portio also believes that the MP3 player market will soon be totally dominated by the mobile handset vendors. On the Internet, the growth of social networking sites has been astronomical, and two of the most interesting new sites where new artists could promote their songs and videos were bought by global brands.

Analysts could not initially understand why News Corporation bought MySpace for $560 million in 2005. However, this looked positively like a bargain compared to the $1.65 billion that Google paid for YouTube in October 2006.

Almost every major development in the global music industry in recent years has been with digital music. As many big brands have entered the market with significant technical experience and substantial marketing budgets, Portio describes the next few years as the "Clash of the Titans."

As these major brand names -- music companies, consumer electronics manufacturers, mobile network operators, mobile handset vendors and of course all manner of advertisers -- meet and compete in this growing market, Portio studied how these players are positioned to build their presence in the digital music market. Their resulting study report is entitled "Digital Music Futures 2007-2011."

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How GenAI is Transforming the Role of CIO

The introduction of Artificial intelligence (AI), and the emergence of Generative AI  (GenAI), are now resulting in two key focus areas for Chief Information Officers (CIOs) and their IT leadership team. "GenAI is not just a technology or just a business trend. It is a profound shift in how humans and machines interact," said Mary Mesaglio, VP Analyst at Gartner . "We are moving from what machines can do for us to what machines can be for us." AI platforms are evolving rapidly from being our tools to becoming our teammates. Gartner predicts that by 2025, GenAI will be a workforce partner for 90 percent of companies worldwide. CIO Leadership Market Development CIOs have a major role in how they shape AI and how AI shapes us. According to recent Gartner surveys of CEOs, enterprise CIOs are their number one choice to unlock the value of GenAI tools. In fact, CIOs and IT executives will prioritize two areas to unleash the possibility of AI over the next 12-24 months – t