In-Stat: Music Could Prove More Popular Than Gaming in US Mobile Market

In-Stat has issued a new report that suggests that there is a greater interest in mobile music among U.S. consumers than mobile gaming. However, "the ecosystem that will permit widespread uptake of music applications is not yet mature," and key issues, such as pricing, revenue sharing and Digital Rights Management (DRM) need to resolved before the market takes off.

David Chamberlain at In-Stat said, "The window to catch a group of wireless users we call ‘Mobile Music Intenders’ - those interested in mobile music services - may be closing soon,. They’re ready to buy new handsets and they’re willing to pay extra for handsets that play music. Without available music services or handsets, carriers may miss this opportunity to grab what could end up being a very lucrative mobile music market."

Highlights of the report include:

• Music Intenders are willing to pay extra for their mobile phones. Over one-fourth spent more than $150 for their current handset; more than two-thirds expect to buy new phones before the end of 2005.
• Overall, 34% of wireless subscribers surveyed are “somewhat”, “very”, or “extremely” interested in mobile music services.
• Survey respondents who could be classified as “MP3 Intenders” have a distinct demographic profile when compared with the general population. They are younger, male, prefer Sprint PCS and T-Mobile, and spend more on their handsets.