MySpace Mulling Digital Music Service
- Posted: Thursday, February 21, 2008
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- Author: pradhana
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- Filed under: Mobile Content, Mobile Services, MySpace, Online Services, White Space
News Corp.-owned social networking site MySpace is reportedly in talks with major record labels to launch a digital music service that would offer both premium MP3 downloads as well as free streaming content. According to The Wall Street Journal, the tentatively-named MySpace Music would be structured as a joint venture between MySpace and its content provider partners, with the possibility of outside investors lending financial assistance.
MySpace has been a popular music hub for years, prompting established acts and unknown bands alike to create profile pages that often let visitors stream a few songs. Bands on MySpace also can sell downloads of original music directly through their profile pages. The company may be looking for ways to maintain its lead on rival social network Facebook, which has been gaining in popularity.
So far, MySpace has approached Universal Music Group, Warner Music Group, EMI Group and Sony BMG Music; proposals are still in the discussion stage, but MySpace is weighing a premium platform featuring downloads compatible with virtually portable device, including Apple's iPod, as well as ad-supported streaming content. A music merchandise service is also under consideration, as is a paid subscription service optimized for certain portable devices. MySpace declined comment.
The new proposal isn't fully fleshed out, but people familiar with the plan said it is likely to include both free, streaming music and paid MP3 downloads, which can be played on virtually any portable device, including Apple Inc.'s popular iPod.
The streaming service would be supported by revenue from advertising sales, which would be split with the labels, these people said. MySpace executives have also discussed the possibility of selling merchandise like T-shirts through the service, and of running a paid subscription service that would let users play rented music on some specially configured portable devices, though probably not on iPods, these people said. [FierceMobileContent/Wall Street Journal]
The 700 MHz Auction Bids Continue Climbing and Far Exceeding Expectations
- Posted: Wednesday, February 06, 2008
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- Author: pradhana
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- Filed under: Google, Microsoft, White Space
Even the FCC underestimated the demand for 700 MHz. Originally expected to raise between $10 billion and $15 billion, total current bids exceed $18.9 billion. Bidding on the sought-after C block also surpasses the FCC requirements ($4.6 billion) and now has a PWB (Provisional Winning Bid) of $4.7 billion. ABI Research notes that demand for 700 MHz is so great, not even the pending recession impacts the bidding process.
This auction may be the last opportunity for new participants to gain ground in the wireless realm, which is dominated by incumbent carriers. New participants include Google, Vulcan Spectrum LLC, Tower Stream, and Cox, while traditional participants include Verizon and AT&T.
“700 MHz provides better propagation characteristics than 850 MHz, 1900 MHz, 2100 MHz, and higher-frequency spectrums,” says ABI Research senior analyst Nadine Manjaro. “For instance, cable companies can utilize this spectrum by launching their own mobile broadband networks – thereby alleviating the need to rely on wireless operators. But Google draws the most speculation, since the company’s entrance into the wireless market could significantly change the wireless industry.”
Moreover, incumbent operators absolutely want to strengthen 4G deployments; and 700 MHz will improve rural and in-building coverage at a lower cost than existing frequencies.
One surprise is the nationwide D block, set aside by the FCC for public safety. Frontline Wireless – the expected front-runner – was disqualified due to its inability to pay the minimum bid. And there has been only one bid, which failed to meet the reserve bid price of $519 million. The D block price is set at $1.3 billion.
“Beginning in 2009,” concludes Manjaro, “the 700 MHz auction could alter wireless broadband services in the United States and abroad. Google’s interest in the C block influenced Verizon’s decision to open up access to its network, just as Apple’s introduction of the iPhone stirred up the cellphone market. If Google or Microsoft secures the C block spectrum, it could change the whole industry.” [ABI Research]
Related article:FCC: 700 MHz Auction to Raise Nearly US$17 Billion Winning Bids
FCC: 700 MHz Auction to Raise Nearly US$17 Billion Winning Bids
- Posted: Monday, February 04, 2008
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- Author: pradhana
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- Filed under: White Space
Related articles:
700 MHz Auction: Total Bids Hit $11.6 Billion
On the Hot Seat with Skype's Christopher Libertelli
700 MHz Auction: Total Bids Hit $11.6 Billion
- Posted: Saturday, February 02, 2008
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- Author: pradhana
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- Filed under: White Space
Mobile Entertainment Is Moving On Up
- Posted: Wednesday, January 30, 2008
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- Author: pradhana
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- Filed under: Market Survey, Mobile Content, Mobile Services, White Space
Mobile voice is a commodity. Mobile fun is so much more.
Mobile entertainment revenues will reach $64 billion worldwide by 2012, from just over $20 billion in 2007, according to Juniper Research's "Mobile Entertainment Markets: Opportunities & Forecasts 2007-2012" report.
"With more widespread penetration of 3G handsets – or entertainment-focused 2.5G handsets like the iPhone – there is likely to be a much greater surge in both the adoption and overall usage in rich media services," said Windsor Holden, author of the report.
Juniper said that mobile music revenue would account for $17.5 billion of the mobile 2012 entertainment market, up from nearly $9 billion in 2007.
The company projected that mobile gaming revenues would hit $16 billion in 2012, from just under $5 billion in 2007. Mobile TV was pegged to grow to $11.9 billion in 2012, up from $1.4 billion in 2007.
Read more - eMarketer
Online Music Distribution to Dwarf Mobile
- Posted: Saturday, January 12, 2008
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- Author: pradhana
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- Filed under: Market Survey, Mobile Content, Mobile Services, Online Services, White Space
Yankee Group today announced at the 2008 International CES that two fundamental shifts are driving the music industry—digitization and direct-to-consumer transactions. As a result, US recording industry revenue has plummeted 25% since peaking at $14.6 billion in1999. By year-end 2006, it had declined to $11 billion.
Despite the best efforts of mobile operators, online distribution will continue to dominate the digital music market, accounting for 80 percent of industry revenue by 2012, according to a new report released by market research firm Yankee Group.
According to "U.S. Digital Music Forecast: What Fate Awaits the Record Labels?," digital revenue (online and mobile) is accelerating, growing to $1.98 billion by the end of 2007 -- while Yankee forecasts the digital music market will grow to $5.34 billion by 2012, the leap will remain insufficient to offset declining CD sales, although the increasing marginalization of labels guarantees a larger share of revenues will go directly to artists.
Yankee Group anticipates online music will grow faster than mobile music downloads, and online single downloads will outstrip album downloads or subscriptions -- even though the addressable market for music-enabled phones will expand to 266 million by 2012, only 9 percent of mobile subscribers will actively use them as portable music players. Accordingly, Yankee recommends that carriers actively promote the PC distribution channel over the handset.
"No industry has felt the impact of the Anywhere Consumer more strongly than the recording industry," said Michael Goodman, director of digital entertainment at Yankee Group. "It's not just that the record labels are facing declining revenue; rather, the basic relationship between recording artists, record labels and consumers is in major flux. As bands retain ownership of their music, the record label's role shrinks while the role of technology vendors and online music stores grow." [FierceMobileContent]
Motorola Acquires Music Service Provider Soundbuzz
- Posted: Tuesday, January 08, 2008
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- Author: pradhana
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- Filed under: Broadband, Mobile Content, Mobile Services, Motorola, White Space
Motorola announced a definitive agreement to acquire privately held pan-Asian music provider Soundbuzz Pte. Ltd., enabling the handset maker to expand its MOTOMUSIC service beyond China into the India, Southeast Asia, Australia and New Zealand markets.
With well over 90 percent of all digital music content in Asia sold via mobile channels, a level expected to remain in the coming years, Motorola's strength in music delivery will help its carrier customers access this growth opportunity. Financial terms of the deal, which expected to close in the first quarter, were not disclosed.
Singapore-based Soundbuzz's end-to-end, multi-region music delivery platform enables sales and distribution of digital content via over-the-air and broadband connections, complete with subscriber management and content management tools as well as payment, client software and media delivery technologies.
Soundbuzz content partners include Sony BMG, EMI, Warner Music International and Universal Music Group alongside more than 45 independent record labels in Asia, the U.S. and Europe. Soundbuzz also boasts operator deals with Hutchison 3, Motorola, Airtel, SingTel, Optus Zoo, Telstra/BigPond Music, Microsoft (Windows Media Player 10), Creative Technology and Sony BMG.
"We are very pleased to announce this transaction with Soundbuzz. It will provide Motorola with one of the most extensive music libraries in the Asia Pacific region, advance our music and video offerings in Australia and South East Asia, and build on the success of our MOTOMUSIC Services in China," said Bill Werner, senior vice president, future solutions and technology for mobile devices. "We are delighted to welcome Soundbuzz's strong management whose extensive region specific experience in the music and video industries will enhance the strength of our mobile device teams."
"Motorola's dedication to enhancing the digital music experience in Asia complements our own objectives and makes it the ideal partner," said Sudhanshu Sarronwala, CEO of Soundbuzz. "This combination will help us extend our platform and create exciting growth opportunities for Soundbuzz's employees and our partner music labels. Further, our customers will benefit from the technological advancements that we expect to deliver as part of a global leader in mobile communications."
Motorola intends to maintain Soundbuzz's Singapore headquarters, which will be an integral component of Motorola's digital music development strategy in Asia. [FierceMobileContent/PRNewswire]
How Far Will Nokia's Transformation Go?
- Posted: Friday, January 04, 2008
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- Author: pradhana
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- Filed under: Apple, Google, Mobile Content, Mobile Services, Motorola, Nokia, Online Services, White Space, Yahoo
The shifting focus on software rather than pure hardware is a big step for the wireless industry. But according to iSuppli analyst Tina Teng, the move is nothing new for Nokia.
“Nokia’s been doing this for a long time, and this is just the next step in moving beyond the devices themselves,” says Teng, who adds that the company’s music service in particular could be a game changer and a threat to carrier-operated stores, much like Apple’s iTunes. “Just look at what Apple did with their Wi-Fi enabled iPhones - you don’t have to go through the cellular networks to download music anymore.”
Speaking of Apple - the extension to software and services also means that Nokia’s circle of competitors is also growing. Once restricted to traditional phonemakers like Motorola and Samsung, the company could soon find itself neck-and-neck with cellular operators who would rather sell their own branded services, Internet-centric companies like Google and Yahoo and mobile newcomers like, you guessed it, Apple.
But as the company continues its metamorphosis from manufacturer to service provider, it threatens to irreparably damage its relationships with network operators. Realistically speaking, how much further can Nokia go?
Already Orange UK griped in a leaked memo that the combination of the Nokia Music Store link and Orange's own branded music service on the same handset could confuse its subscribers, prompting a threatened boycott of Nokia's new N81 device. Don't expect rival operators to keep their mouths shut much longer. /FD
Nokia Expanded Far Beyond Its Core Device Business
- Posted: Friday, January 04, 2008
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- Author: pradhana
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- Filed under: Mobile Content, Mobile Services, Nokia, White Space
Phone companies just made phones? That strategy no longer works in today’s Internet-accessing, mobile-gaming and MP3-playing world - and it definitely won’t work in 2008. That’s why Nokia, the world’s largest phone manufacturer, is in the midst of a reorganization it says will help the company grow beyond phones and cellular equipment.
The new corporate structure, which takes effect January 1, 2008, will divide the Finland-based company into three main units: Devices, services and software and markets. It’s the services and software part that stands out for a phone manufacturer - typically more concerned with churning out devices than with providing services.
"We are constantly thinking beyond the phone," said Nokia CEO Olli-Pekka Kallasvuo in summer 2007. "Devices alone are no longer enough." Nokia expanded far beyond its core device business last year, introducing new web, music and gaming services in concert with new handsets.
The reorganization is just part of newish CEO Olli-Pekka Kallasvuo’s overall strategy of morphing Nokia into a mobile Internet company, not just a phonemaker.
“The convergence of the mobile communications and Internet industries is opening up new growth opportunities for us, both in the devices business as well as in consumer Internet services and enterprise solutions,” Kallasvuo said last June when he first announced the reorganization.
Since he took on the chief executive role in 2006, Kallasvuo’s already led Nokia through several software and services-related acquisitions - including digital mapmaking giant Navteq, photo-sharing service Twango and Avvenu, a Palo Alto, Calif.-based company that lets users access content on their PC via cell phone.
He’s also announced the launch of Ovi (which means “door” in Finnish), a one-stop Web portal which will combine Nokia’s various mapping, music, gaming and other mobile services. Some Ovi offerings are already available to wireless users in the United Kingdom, but recent software delays have forced the company to postpone the launch of one of its most anticipated services - a mobile gaming platform called N-Gage. /FD
MCN Launches Digital Content Search Services for Yahoo! Japan for Mobile
- Posted: Wednesday, December 26, 2007
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- Author: pradhana
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- Filed under: Digital Content, Mobile Content, Mobile Services, White Space, Yahoo
Mobile Content Networks (MCN), the world's leading mobile search management solutions provider, today announced the launch of "Uta Search," a music search service available from the home page of Yahoo! Japan for Mobile's market leading portal. Uta Search is the first of several Digital Content Search channels that MCN will power for Yahoo! Japan for Mobile and is available to nearly 80,000,000 mobile users across the NTT DoCoMo and KDDI/au wireless networks.
"MCN believes that mobile search is not an 'all or nothing' proposition, and that mobile operators and portals must create an ecosystem that leverages best practices and partners in order to drive high value transactions," said MCN CEO Marc Bookman. "Our collaboration with Yahoo! Japan for Mobile is an excellent example of this shared understanding, one that begins by putting user needs first."
Yahoo! Japan Corporation is a leading internet brand and one of the most trafficked Internet destinations in Japan. Yahoo! Japan seeks to provide online products and services essential to users' lives, and offers a full range of tools and marketing solutions for businesses to connect with Internet users in Japan. Yahoo! Japan is headquartered in Tokyo, Japan.
Yahoo! Japan for Mobile, a subsidiary of Yahoo! Japan, provides a wide range of Yahoo! Japan portal services to mobile subscribers accessing Wireless Internet services on iMode (NTT DoCoMo), EZweb (au) and Yahoo! Keitai (SoftBank). With over 100,000,000 page views per day Yahoo! Japan for Mobile is one of the world's largest and most active mobile sites, and is Japan's most popular starting point for mobile information and content discovery. [Newswire/FierceMobileContent]
Mobile Music Growth and Experiments
- Posted: Saturday, December 08, 2007
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- Author: pradhana
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- Filed under: Market Survey, Mobile Content, Mobile Services, White Space
Spending on mobile music will reach $11 billion and account for 30% of global recorded music revenue by 2011, according to Understanding & Solutions.
Mobile music spending currently represents 13% of global recorded music revenue. "Alongside online, mobile music is essential to the future of the music industry," said David Sidebottom, consultant at Understanding & Solutions.
Understanding & Solutions said that some operators are not pursuing the mobile music opportunity aggressively since they cannot make money directly from selling full track downloads. However, they pointed out that this creates opportunities for off-portal and third party service providers.
Underscoring the point, Nokia announced this week that it would offer free music from the Universal label to phone buyers. Under the arrangement, Universal would get a percentage of phone sale revenue.
Music labels have reportedly sought similar revenue-sharing arrangements with Apple for some time. [eMarketer]
Mobile Music's Moving Revenue Numbers
- Posted: Thursday, May 24, 2007
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- Author: pradhana
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- Filed under: Apple, iPod, Mobile Content, Mobile Market, Mobile Services, White Space
Got that mobi mojo working now.
Competing interests between the music, consumer technology and mobile industries have created a virtual battlefield in the entertainment sector.
"The entertainment sectors are being rocked by online and mobile distribution," says John du Pre Gauntt, eMarketer Senior Analyst and the author of the new Mobile Music: Mixing It Up report. "Unless the three major industries involved change some of their fundamental assumptions about their roles and rewards in the value chain, it's not likely that mobile music will grow as fast, or as predictably, as they need it to."
eMarketer estimates that music labels earned $1 billion from global mobile music in 2006, and predicts that that figure will rise to $7.3 billion in 2011.
"As far as the music industry is concerned, mobile music revenues need to climb because online music distribution still hasn't made up for the decline in CD sales," says Mr. Gauntt. "Mobile network operators will also have significant problems if music doesn't scale — given their need to offset pure price competition."
The consumer electronics industry is not neutral on growth, either.
"Apple's iPod may have ignited a portable music revolution in a few countries," says Mr. Gauntt. "But compared to the volume of music-capable phones shipping worldwide, Apple needs to get into mobile sooner rather than later lest iPod go the way of PDAs."
While marketers should understand that currently no single industry player can "deliver" the mobile music market to them, they do have options.
Read more
2009: Musik Digital Sebabkan Turunnya 16% Penjualan Musik Global
- Posted: Tuesday, April 10, 2007
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- Author: pradhana
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- Filed under: Digital Content, Mobile Content, Mobile Services, White Space
Firma riset Enders Analysis memperkirakan bahwa penjualan musik global akan mengalami penurunan sebesar 23 miliar dolar AS tahun 2009, atau penurunan sebesar 16 persen dari penjualan tahun lalu dan hanya setengah dari puncak penjualan tahun 1997 yang sebesar 45 miliar dolar AS.
Dalam pernyataannya, seorang eksekutif perusahaan rekaman yang dikutip harian Financial Times, King Canute bahwa: “Kematian CD sebenarnya telah diprediksi sejak sepuluh tahun yang lalu, namun hingga saat ini masih terus terjual. Anak-anak muda masih meminati industri musik dan percaya dengan perusahaan rekaman besar dunia.”
Enders juga mengatakan bahwa model bisnis label yang ada saat ini tengah berada di persimpangan yang tak nyaman, tetapi penurunan penjualan musik CD akan melambat tahun 2010 ketika penetrasi pemutar MP3 mulai mendatar.
Sementara International Federation of the Phonographic Industry (IFPI) melaporkan bahwa tahun 2006 penjualan download musik digital melipat dua dibandingkan tahun lalu menjadi sebesar 2 miliar dolar AS, tetapi pertumbuhannya akan mulai melambat dan pengambil alihan penjualan CD belum akan tercapai.
Saat ini, penjualan musik digital mencapai 10 persen dari total pasar musik dunia, karena perusahaan rekaman mulai bereksperimen dan berinovasi dengan serangkaian model bisnis dan produk-produk musik digital, yang melibatkan ratusan mitra lisensi.
Pada tahun 2006, jumlah lagu yang tersedia secara online melipat dua menjadi 4 juta, serta ribuan album telah diluncurkan dalam berbagai format dan platform digital. Lagu-lagu klasik telah menjadi dividen digital dan layanan-layanan yang dibiayai iklan akan menjadi arus pendapatan baru perusahaan rekaman.
Dewasa ini, konsumen melihat teknologi digital telah membantu kebiasaan membeli mereka. Mereka diuntungkan dengan toko-toko online yang persediaan lagunya tak terbatas. Dalam bulan-bulan belakangan ini, terlihat bahwa kanal distribusi musik digital semakin banyak ragamnya.
Layanan-layanan download sistem a-la-carte, yang dimotori oleh iTunes, merupakan format digital yang tetap dominan. Tetapi, sistem ini bersaing dengan sistem-sistem lainnya, seperti layanan berlangganan, mobile mastertones dan, yang baru muncul belakangan adalah model-model yang didukung iklan, serta lisensi video sebagai terlihat pada situs web YouTube dan MySpace.
Musik bergerak saat ini telah meraih setengah pendapatan musik digital global tahun 2006, tetapi pemisahan antara musik online dan bergerak di sejumlah Negara berbeda cukup tajam. Di Jepang, misalnya, 90% penjualan musik digital berasal dari penjualan musik bergerak. Tahun 2007 dengan semakin maraknya penjualan ponsel berkemampuan musik, seperti Nokia dan Sony Ericsson, penjualan musik digital meningkat. Belum lagi dengan hadirnya iPhone besutan Apple pada bulan Juni mendatang ini.
Namun begitu, Pimpinan dan CEO IFPI, John Kennedy, mengungkapkan bahwa: "Dewasa ini, kalangan industri rekaman telah masuk ke dalam pola pemikiran digital.” Sehingga kalau tahu 2006 pendapatan dari musik digital meningkat dua kali lipat, maka pada tahun 2010 diperkirakan seperempat dari total penjualan musik dunia akan dikontribusi oleh musik digital. Ini merupakan pasar yang memadukan evolusi dan revolusi, dimana kurva belajarnya adalah perubahan arah berbasis regular. Tapi ini pasar yang menantang.
Is DRM Doomed?
- Posted: Thursday, April 05, 2007
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- Author: pradhana
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- Filed under: Apple, Digital Content, Internet Advertising, Mobile Content, Mobile Services, Online Advertising, Online Services, White Space
Digital rights management may be a failed experiment.
Earlier this year, eMarketer released its Digital Downloading: Music, Movies and TV report, and predicted that digital music spending in the US would approach $5 billion in 2010, up from $1.9 billion in 2006.
The report stated: "Imposing stringent restrictions on how a consumer can use the digital products they purchase is not having the effect of securing revenue for the copyright holder, but pushing the consumer completely away.
"Restrictive DRM is keeping illegal file-sharing alive and well. The iTunes experience has shown the media sector that consumers are more than prepared to pay for online content. It is now time for media companies to show a little more trust in their customers and stop telling them what they cannot do, and begin listening to what their customers want to do."
Apparently, EMI was listening. The company's recent announcement that it would offer the bulk of its digital music catalog on iTunes DRM-free is an important step in the evolution of digital music.
Not only will iTunes users be able to play their DRM-free tracks on music players other than the iPod, Apple also announced that the DRM-free music will be available at higher sound quality than the DRM-enabled tracks. iTunes users will have to pay $1.29 per DRM-free track, but the DRM-enabled tracks will continue to be available for $0.99.
Apple CEO Steve Jobs predicted that "well over half of the 5 million tracks offered on iTunes today will be also offered in DRM-free versions by the end of this calendar year."
Read more
IMG acquires mobile TV firm Nunet
- Posted: Tuesday, January 30, 2007
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- Author: pradhana
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- Filed under: Mobile Content, Mobile Services, Mobile TV, White Space
Global sports, entertainment and media company IMG announced its acquisition of Nunet AG, a supplier of mobile TV solutions that presently streams in excess of 200 channels for more than 20 wireless operators including Vodafone Germany and Swisscom in conjunction with content partners like HBO, Turner Entertainment and Sony BMG.
"[Nunet] represents an excellent strategic fit with IMG Media," said IMG senior corporate VP Todd McCormack in a prepared statement. "Nunet's capabilities perfectly complement those of IMG Media, leading to further synergies and the enhancement of the service we can offer our clients.
Nunet's executive talent, tools and infrastructure will add significant resources to capture value in the mobile content value chain." According to IMG, Nunet will continue to operate its content aggregation, content enrichment and distribution services under its own brand.
IMG Media produces and distributes more than 10,000 hours of sports, documentary, entertainment and children's content each year, serving multiple broadcast platforms in some 200 countries. The firm holds the broadcast rights to sporting events including Wimbledon and represents athletes and franchises including Tiger Woods and Manchester United. It also maintains the world's largest sports video archive, with holdings in excess of 250,000 hours of broadcast footage.
For more on the IMG/Nunet deal, read this release
Related articles:
Forecast: Mobile TV/VOD to reach $18B by 2010
Ericsson: Mobile TV mainstream by 2008
Forecast: Mobile entertainment to reach $77B by 2011
Forecast: Mobile gaming to top $6B by 2010
Napster Mobile goes live on KDDI
- Posted: Sunday, January 28, 2007
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- Author: pradhana
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- Filed under: Digital Content, Mobile Content, Mobile Services, White Space
Digital music download service provider Napster Mobile announced a partnership with Japan's second largest mobile network operator KDDI. Napster Mobile will make available over-the-air full-track downloads and ringtones as well as personalized recommendations, exclusive content and chart information.
In November 2006, Napster Mobile launched service via Japan's leading mobile carrier NTT DoCoMo; between the two operators, the service now reaches 60 million Japanese subscribers.
Customers of au/KDDI can subscribe to Napster Mobile through EZ Web to enjoy unlimited access to Napster Mobile's comprehensive music programming features, including personalized recommendations, featured artists and new releases, exclusive music and chart information, and to browse Napster Mobile's vast catalog of full-length songs and ringtones.
Napster Mobile subscribers in Japan pay a monthly access fee of approximately $3 per month, and can acquire individual songs and ringtones for mobile delivery and download using a "credit-based" system. Subscribers receive 300 credits per month to procure individual songs and ringtones, and they can purchase additional credits at any time.
Full-length songs from Napster Mobile can be delivered over-the-air and downloaded to a variety of different au/KDDI mobile handsets.
Source: FierceMobileContent. For more on the Napster/KDDI deal, read this release
Mobile music to $32B by 2010
- Posted: Thursday, January 25, 2007
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- Author: pradhana
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- Filed under: Digital Content, Gadget, Market Survey, Mobile Content, Mobile Services, White Space, Wireless Services
A new Gartner report anticipates global spending on mobile music to reach $32.2 billion by 2010, more than double the $13.7 billion revenues expected for 2007. Consumers in the Asia-Pacific region and Japan are expected to lead the market, which will encompass everything from ringtones to full-track downloads.
According to Gartner, mobile handsets will supersede dedicated MP3 players as consumers' music device of choice, although digital storefronts like Apple's iTunes and Microsoft's Zune Marketplace will force wireless operators to develop new content strategies and address nagging technical issues including DRM and network coverage.
For more on Gartner's forecast, read this InformationWeek article
Digital Music Market Doubles
- Posted: Wednesday, January 24, 2007
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- Author: pradhana
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- Filed under: Digital Content, Market Survey, Mobile Content, Mobile Services, White Space
Digital music sales are jumping.
New reports from two major research sources indicate that worldwide digital music sales are continuing to climb.
Nielsen SoundScan captured more than 675 million digital track sales worldwide in 2006, with nearly 600 million digital track sales in North America alone, up from 359 million in 2005. The IFPI "Digital Music Report 2007" estimates that worldwide digital music sales revenues doubled in 2006 to around $2 billion.
As record companies continue experimenting to find the right balance of distribution models and digital music products, digital sales already account for roughly 10% of the music market.
"The record industry today has evolved into a digital thinking, digitally literate business," said IFPI CEO John Kennedy. "We expect at least one quarter of all music sales worldwide to be digital."
Read more
Mobile music to reach $13B by 2011
- Posted: Tuesday, January 23, 2007
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- Author: pradhana
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- Filed under: Digital Content, Market Survey, Mobile Content, Mobile Services, White Space
Ringtones and ringback tones, with full-track downloads slowly playing a larger role, will drive the majority of the growth of global mobile music market that will reach $13 billion by 2011, according to a forecast by research firm Informa Telecoms & Media.
The greatest proportion of these revenues will emanate from Asia-Pacific which accounts for 56% of the market total in 2006, with Japan making up 46% of this total in 2006. Informa stresses that a new growth market in China will start to become evident by 2011, when the region contributes 25% to overall Asia-Pacific revenues and is the next mobile music hot spot.
In conjunction with the mobile operators who have concentrated on rolling out advanced music services, the handset vendors have exerted equal time and energy over the last year establishing advanced handsets that have MP3 functionality and large hard drives. Thus the notion of the mobile handset as a realistic rival to the iPod is gaining impetus, noted the research firm.
And people, please stop saying mobile is an iPod killer. There is no iPod killer, just an expansion of the marketplace. To whit: "It is absolutely imperative that the industry understands that mobile music is not going to replace the iPod in the same way that the iPod is not going to prevent growth of mobile music," says Informa analyst Nicky Walton.
On the other hand, news out of MIDEM 2007 music industry trade fair in Cannes, France: A clutch of independent record labels and trade groups from more than a dozen countries have signed with Merlin, a new nonprofit licensing agency that will negotiate deals on their behalf with music download sites and mobile content distributors.
The Netherlands-based Merlin, which bills itself as a "one-stop licensing shop," will enable digital platforms to access its representatives' music catalogs in one deal, as opposed to myriad separate negotiations; labels may also continue selling independently via their existing distribution networks.
Beggars Group chairman, Martin Mills, told The Wall Street Journal, Merlin will effectively create a "virtual fifth major [label]" with its combined catalog: "Merlin will license collectively the individually unlicensable," he said.
Source: FierceMobileContent and DigiTimes Telecom
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