Mobile to account for 30% of music retail value by 2011
Music delivered to mobile phones via operatorsÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢ networks (mobile music) is on the rise, currently representing around 13% of global recorded music retail value. A new industry report from Understanding & Solutions forecasts an increase to almost 30% by 2011, amounting to $11Bn and helping to offset some of the decline in packaged music revenues.
ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œAlongside online, mobile music is essential to the future of the music industry,ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â says Understanding & Solutions Consultant, David Sidebottom. ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œJapan, closely followed by the USA, has the most efficient mobile music landscape: both countries have a concentrated operator base and a large pool of potential subscribers, providing economies of scale for the music companies.
ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œIn the fragmented European market, some operators have become less aggressive, as they canÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t make money directly from selling full track downloads, but this will pave the way for ÃƒÂ¢Ã¢â€šÂ¬Ã‹Å“off-portalÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢ and third party service providers.ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â
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.
ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œLooking to emerging markets, mobile could become the number one platform for music, where packaged CDs havenÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t gained traction due to piracy and lack of hardware ownership,ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â continues Sidebottom. ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œBoth China and India are showing large revenue gains, which are being driven by strong mobile subscriber growth and the status associated with music-related personalised mobile products.ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â
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