Mobile music revenues will rise from 1.6bn in 2007 to 3.2bn by 2012, says Screen Digest.
Although mastertones and ringback tones will account for more than half of this sum, full track and video service revenues will increase to 46 per cent in 2012 from 29 per cent at 2007 year end. At €219m, the W European and N American full track and video mobile music market is a fraction of online music's current value of €1,309m.The latest report from Screen Digest examines the market for mobile music in 27 countries worldwide. It asserts that iTunes near break-even pricing has set consumer expectations for buying individual tracks that make it hard for mobile operators to turn a profit directly from music sales. This is compounded by high over the air (OTA) delivery costs associated with every track sold via mobile.
Screen Digest believes that the introduction of subscription models such as Vodafone's MusicStation in the UK will lead to a marked rise in the uptake of mobile music services. Bundles already available to consumers make music 'free' at the point of delivery. It predicts subscription service revenues will be worth €928m 2012.
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