InfoCom says mobile music still in its infancy

Germany (SANEPR.com) May 26, 2009 -- According to InfoCom most recent study, mobile music downloads are currently bringing very few revenues to mobile operators and service providers. Usage-based pricing still prevailed with mobile music downloads priced per song from €0.30 to €3.00 per song, although most titles are available for €1.15. The InfoCom analyst leading the research said: „There are indeed still some major drawbacks to overcome, in particular the persistence of the walled garden approach of most mobile operators — although with some exceptions — and major music labels. Besides, customers have access — legally or illegally — to music “for free” on the Internet or from friends as side-loads”.

On the other hand, increasing competition from mobile phone manufacturers and technological development are driving service innovation. Latest developments see most current phone models with larger memory capacity and generally embedded compatible music players, which can now compete with dedicated MP3 players. Moreover, mobile music stores offer dedicated software to store, organise, share and display the music, providing thus an enhanced user experience. On the side of the service, operators start to launch new business models with billing based on song bundles (download a given number of songs) or unlimited tracks (flat rate) for a fixed weekly or monthly fee. And music labels launched first trials of (Digital Right Management) DRM-free content for online music services, to fight piracy. InfoCom again commented” In the mobile market, major labels are still a bit reluctant to give up DRM; and indeed, DRM-free content offers are still an exception”.

All in all, the mobile music offerings are indeed evolving to propose a richer user experience. As a matter of fact, mobile operators — the dominators of the mobile music delivery chain — search for new forms of partnerships with music labels, with service providers as well as with manufacturers as to provide more appealing mobile music services, which bring more stable revenues and also bind the user to the carrier.

About TS&T (Telecoms Strategies & Trends) — TS&T is a highly analytical publication on ICT business that provides in-depth articles on a variety of topics such as companies, markets and trends. Each issue contains up-to-date rigorous analysis. This strategy e-journal delivers a concise analysis of market development to industry leaders and business strategists of both service and equipment providers. Topics are presented in a detailed yet succinct format with relevant text and meaningful pictures.

About InfoCom GmbH: InfoCom is a market research and consultancy company with over 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunications, IT and multimedia industries. InfoCom GmbH’s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage.
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