Posts Tagged ‘ come with music ’

Consumer doesn’t want to pay for mobile music

A few months ago, we discussed how mobile music is evolving from ring tones to new music services.   However, it’s not easy to find the right model to generate revenue in this market.

In September, the iPhone app Spotify was launched to the Apple app store, allowing users to access music playlists on their phone as part of the £9.99 ad-free monthly subscription.  However, the reactions were very mixed.  From the 1800 consumer reviews on the first day of the launch, there were 400 people giving the maximum of 5 stars, but no less than 1100 giving it only one star.
According to a survey among readers of the British website nma.co.uk, 2 out of 3 is not willing to pay for streaming music. 

Mark Mulligan, VP and research director at Forrester Research, said the mobile music market is a tough challenge and no one has yet cracked it. “Consumers have generally said they have no appetite for paying for streaming music and there’s endless evidence that they won’t buy music they don’t own. So realistically, for Spotify, the aspiration should be to convert a small number of people to premium via the mobile app,” he said.

But a Spotify spokesman told NewMediaAge the company wasn’t surprised by consumers’ responses to the app. “We always knew the majority of users would stay on the free service,” he said. “We’re getting a lot of traffic from people used to free illegal downloads, so they expect us to be free. We’ve only launched on the iPhone and Android for now, so that’s just a small percentage of the market, although we’re confident a fair number will upgrade.”

Meanwhile, Napster, the illegal-gone-legal music service has reacted to the Spotify launch by halving the price of its streaming service to £5 a month. 

Who will win this competition?  Or will consumers stick to their illegal downloads, still found everywhere online…?

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Mobile music: from ringtones to full MP3

I’ve discussed it before: the ring tone industry is no longer what it used to be.  With today’s mobile devices, we no longer have to endure those irritating polyphonic  ring tones, but we can instead download full MP3 of our favorite songs onto our mobile, use them as tones or simple use our phone as a music player when we’re on the bus.

As I recently read on Digimedia, research by Strategy Analytics has shown that the sale of (mono, polyphonic & hifi) ring tones still represents 50% of mobile music sales, while the download of singles is gaining popularity.   Another agency Informa Telecoms & Media points out that for listening to music, most people still use a separate device (such as an iPod or a pre-historical CD player).  But with hybrid mobile devices and smartphones becoming more wide spread, this trend might soon change. 

A good stimulation is the launch of new mobile music services, such as PlayNow Plus, which is automatically available with the phones from the Sony Ericsson Walkman series, and Come With Music, which Comes With the Nokia XpressMusic devices.  Both services offer free music downloads for a first period of time, after which the (optional) service is monthly charged with the mobile subscription.   Another example is of course the Apple iPhone, which syncs with the iTunes Store. 

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