Global Music Market Set
to Grow Again As Major Brands Compete for A Piece of
the Action
- After six years of steady decline the global music
market is set to grow again spurred on by increased
consumption of digital music through multiple channels
with annual revenues predicted to reach USD$38.8 billion
by 2011.
- In 2007 almost half of the 1 billion mobile handsets
shipped will have music playing capabilities, so while
worldwide sales of stand alone MP3 music devices will
continue to grow, sales will level out by 2012, by
which time MP3-enabled mobile handsets will outnumber
stand alone MP3 players by approximately 5 to 1.
- Over-the-air (OTA) music downloads have the potential
to be one of the most successful non-voice services
after SMS, providing prices remain attractive to consumers.
A new and comprehensive market study of the digital
music download market from Portio Research predicts
a healthy future for the music business spurred on by
the success of existing wireline and nascent over-the-air
services provided by mobile network operators.
The report, ‘Digital Music Futures 2007-2011’
highlights the many opportunities that music offers
for some of the world’s largest and most successful
brands, from device and handset vendors like Nokia,
Sony Ericsson and Apple, software companies such as
Microsoft, mobile network operators, advertisers and
of course the digital rights owners themselves coming
together in a veritable ‘Clash of the Titans’.
This battle will take place in the wealthiest and
biggest world markets, Japan and South Korea, Western
Europe, North America, Mexico, Brazil, South Africa,
Hong Kong, Singapore, Australia, New Zealand, Russia
and more with some of the biggest youth-sector brands
such as McDonalds, Coca-Cola, Pepsi, Nike, Reebok and
Adidas possibly involved in sponsoring and advertising
deals.
While there are huge opportunities, the report highlights
the threats from the sort of unexpected change experienced
by the photographic industry which less than 10 years
ago was still based on film. The report highlights a
number of specific industry issues that need to be addressed
and in particular an exhortation for the record labels
not to be greedy, which has resulted in falling revenues
and been a major spur to piracy in the past.
Never before has there been such a feeding frenzy focussed
on one industry. ‘Digital Music Futures 2007-2011’
provides wide ranging and challenging insights into
the role of advertising, handset vendor and mobile network
operator plays, the role of media content sharing sites
such as YouTube and a note for all concerned, to expect
the unexpected!
Digital Music
Futures 2007-2011
For reader enquiries, further information
or to purchase a copy of this report please send an
e-mail to: info@portioresearch.com
or phone: +44 (0)7909 957360
For editorial enquiries please contact: William
Allbrook Tel: 01666 826641, Fax:01666 822594, Email:
william@market-it.co.uk
Portio Research Ltd is an independent
UK-based research company, specialising in the mobile
and wireless sector. Portio is focused on providing
high quality, data-centric reports based on hard facts
and proven numbers, rather than hype and speculation.
www.portioresearch.com
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