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Report: 30% Music Revenue Going Mobile by 2011

3 Dec, 2007 By: Erik Gruenwedel

Digital distribution of music will increasingly divert toward mobile phones, accounting for nearly 30% of global music retail and $11 billion in revenue by 2011, according to a new study.

Music delivered to cell phones through telecommunication networks currently represents about 13% of worldwide music retail sales, according to the study by Understanding & Solutions.

Other digital drivers in music include Internet downloads (iTunes) and ringtones.

The report said ongoing improvements in cell phone handsets allow users to find and purchase songs more easily. However, the study said additional improvements in user interfaces and related software are needed to better compete with the Internet.

Conversely, global sales of packaged music (CDs) are projected to continue a downward slide from about $28 billion this year to about $20 billion in 2011.

“Alongside online, mobile music is essential to the future of the music industry,” said David Sidebottom with London-based U&S. “Mobile could become the number one platform for music, where packaged CDs haven't gained traction due to piracy and lack of hardware ownership.”

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