Sales of mobile music increasing
Rising sales of music downloads and mobile ringtones on mobile phones is bringing cheer to the music industry, especially when sales of CDs have been declining. According to research firm, eMarketer, the high level of competition in the music and consumer technology has made it an extremely competitive and even hostile environment for the entertainment industry, in its report “Mobile Music” Mixing It Up”. Sales of downloaded songs to mobile phones and handhelds reached $390 million in 2006 and sales of ringtones and ringback tones reached $1.7 billion.
“An increasingly plausible scenario is that the mobile handset, long considered to be a personal cash register for paid downloads, might instead evolve into a marketing channel for brands and artists,” Gauntt says. “In that sense, the future business model of mobile music might start looking a lot like the radio model.”
