Forecast: Full-track Mobile Revenues to $4.2B by 2012

• Posted: Thursday, April 10, 2008
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• Author: pradhana
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• Filed under: Online Services

Digital sales represented 10 percent of the total worldwide music market in 2007, up from 6 percent the previous year, and will account for 40 percent of all music purchased worldwide by 2012, according to a new report issued by market research firm In-Stat.

Citing the global expansion of broadband services, demand for single-track downloads and expanding music catalogs as key drivers, In-Stat says digital music revenue growth also hinges on sales of full-track mobile downloads in regions outside of market-leading Japan. In-Stat forecasts worldwide full-track mobile downloads revenues will reach roughly $4.2 billion by 2012.

"Digital piracy continues to represent the primary challenge to online music service providers," said In-Stat analyst Stephanie Ethier in a prepared statement. "Other obstacles still include the lack of interoperability between services and devices due to differing digital rights management technologies, and weak consumer demand for subscription-based services.

Another potential market inhibitor is the fact that content owners, cellular service providers and handset manufacturers are increasing the amount of marketing and promotion for mobile music." [FierceMobileContent]

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