Report: Mobile Music Services Could Surpass Online Services by 2010

Authored by Mark Hefflinger on June 15, 2006 - 1:39pm.

Framingham, Mass. - Mobile music services that let subscribers download songs directly to their cell phones could surpass online digital music retailers like iTunes by 2010, according to a report from market research firm IDC. The firm predicts that wireless music services will count half the number of customers using online digital music services by the end of this year. By 2010, when 60% of all phones shipped in the U.S. will be music-enabled, wireless music services are projected to claim more than 50 million users and generate over $1 billion in revenue. A recent survey conducted by IDC found that 22% of respondents would buy at least one track from their wireless carrier within the first three months of availability, while 8% of those ages 25-44 said they would buy four or more tracks. "Over-the-air tracks at about $2.00 each will emerge as a sustainable price point as long as mobile storefronts are well-designed and offer a wide selection of music, and the music listening experience on the device is comparable to MP3 players," said IDC research manager Lewis Ward.

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