Mobile grows music market

So while worldwide sales of stand alone MP3 music devices will continue to grow, sales will level out by 2012, by which time MP3-enabled mobile handsets will outnumber stand alone MP3 players by approximately five to one.

Over-the-air (OTA) music downloads have the potential to be one of the most successful non-voice services after SMS, providing prices remain attractive to consumers.

Research

A new and comprehensive market study of the digital music download market from Portio Research predicts a healthy future for the music business spurred on by the success of existing wireline and nascent over-the-air services provided by mobile network operators.

The report, 'Digital Music Futures 2007-2011' highlights the many opportunities that music offers for some of the world's largest and most successful brands, from device and handset vendors like Nokia, Sony Ericsson and Apple, software companies such as Microsoft, mobile network operators, advertisers and of course the digital rights owners themselves coming together in a veritable 'Clash of the Titans'.

This battle will take place in the wealthiest and biggest world markets, Japan and South Korea, Western Europe, North America, Mexico, Brazil, South Africa, Hong Kong, Singapore, Australia, New Zealand, Russia and more with some of the biggest youth-sector brands such as McDonalds, Coca-Cola, Pepsi, Nike, Reebok and Adidas possibly involved in sponsoring and advertising deals.

Threats

While there are huge opportunities, the report highlights the threats from the sort of unexpected change experienced by the photographic industry which less than 10 years ago was still based on film. The report highlights a number of specific industry issues that need to be addressed and in particular an exhortation for the record labels not to be greedy, which has resulted in falling revenues and been a major spur to piracy in the past.

Never before has there been such a feeding frenzy focused on one industry. 'Digital Music Futures 2007-2011' provides wide ranging and challenging insights into the role of advertising, handset vendor and mobile network operator plays, the role of media content sharing sites such as YouTube and - a note for all concerned - to expect the unexpected!