Mobile music to grab 30% music retail share by `11

10 Dec, 2007 - 05:20 PM IST     |     By RnMTeam

Mumbai: Music delivered to mobile phones via operators` networks (mobile music) will jump from the current 13 per cent of global recorded music retail value to 30 per cent by 2011.A new industry report from Understanding & Solutions forecasts that the mobile music share will grow to $11 Bn and help offset some of the decline in packaged music revenues.

India could well be one of the countries leading the charge. "Looking to emerging markets, mobile could become the number one platform for music, where packaged CDs haven`t gained traction due to piracy and lack of hardware ownership," says Understanding & Solutions Consultant, David Sidebottom. "Both 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."

"Alongside online, mobile music is essential to the future of the music industry," he adds. "Japan, 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.

"In the fragmented European market, some operators have become less aggressive, as they can`t make money directly from selling full track downloads, but this will pave the way for `off-portal` and third party service providers."

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.