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Mobile Music Revenues Set to Reach $17.5bn by 2012

The total value of the global mobile music market is expected to rise to more than $17.5bn by 2012,

driven by rental music services and full-track downloads, according to a new report by Juniper Research. According to report author Dr Windsor Holden, “I think it’s fair to say that 2007 marked the tipping point as far as mobile music adoption was concerned. Far more subscribers began downloading and subscribing to music content in developed markets, and it must be said that that the publicity surrounding the iPhone launch undoubtedly contributed to consumer awareness of mobile music services per se However, the Juniper report also argues that current prices

for ringtones are unsustainable and that the market for such services may already have peaked in a number of developed markets, arguing that competitive pricing allied to a steady migration to ad-funded and/or self-generated ringtones will lead to a gradual decline in global ringtone revenues.

With some operators now offering full-track downloads at a comparable price to iTunes, there is little justification for a ringtone retail price point that is in many cases two or even three times this level,” said Holden. “Furthermore, those aggregators whose portfolios are largely dependent upon the polyphonic ringtone will be unable to survive in the medium term unless they both rethink their pricing strategies and substantially diversify their product portfolios.

 • Ringtones, which accounted for 62% of the mobile music market in 2007, will account for just 38% by 2012


 • The report argues that more operators should emulate the Vodafone model and introduce similar subscription-based music rental services

 Juniper Research assesses the current and future status of mobile adult services based on interviews, case studies and analysis from representatives of some of the leading organisations in the growing mobile adult services industry.

White papers and further details of the study 'Mobile Music Services: Ringtones, Ringback Tones and Original Recordings (4th edition)’ can be freely downloaded from

http://www.juniperresearch.com

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.