Mobile music services are predicted to rise in popularity, with US customers showing greater interest in downloadable files and broadcast digital radio than mobile gaming, according to new research from In-Stat.
There are certain factors halting the growth of this media however, with In-Stat claiming that until key issues such as pricing, revenue sharing and Digital Rights Management (DRM) can be worked out the widespread uptake of music applications will be put on hold.
Commenting on the predictions, David Chamberlain, In-Stat analyst said: “The window to catch a group of wireless users we call ‘Mobile Music Intenders’, those interested in mobile music services, may be closing soon.”
He continued: “They’re ready to buy new handsets and they’re willing to pay extra for handsets that play music. Without available music services or handsets, carriers may miss the opportunity to grab what could end up being a very lucrative mobile music market.”
The report also found that ‘Music Intenders’ are willing to pay extra for their mobile phones, with over one-fourth spending more than $150 on their current handset, while more that two-thirds expect to buy a new phone by the end of 2005.
Overall, In-Stat found that 34% of wireless subscribers surveyed are “somewhat”, “very” or “extremely” interested in mobile music services.
According to Informa Telecoms & Media’s Mobile Entertainment report, consumers are increasingly using their mobile phones to play music and games, opening up lucrative new revenue streams for mobile and content industries, resulting in a global mobile entertainment market predicted to be worth $42.8 billion by 2010 (see Global Entertainment Market To Reach $42.8 Billion By 2010).
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