Thursday, September 08, 2005

Is the Time Right for Phone-music Player Hybrids?

In the wake of the Apple/Motorola Rokr launch, CNET reports whether the time is finally right for a music cell phone. The article notes there are already a number of phones on the market that can play back music and cites various research on the market potential.

The article cites a study by Solutions Research Group based on 1,062 random interviews in the U.S that found:

  • the average user of a high-capacity digital music device stores only 375 songs
  • half of those surveyed said their digital music player holds fewer than 100 songs
  • owners of Apple's iPods have significantly larger libraries--504 songs on average--compared with owners of other digital music players, with 246 songs
  • 14 percent of Cingular's customers have a digital music player and 17 percent want to buy one within 12 months
  • Only 22 percent of those who own digital music players bought a song online
In addition, a Forrester survey found that "78 percent of online consumers age 18 and older said they had no interest in using their cell phone to play back audio tracks."

Tim Deal, an analyst at Technology Business Research said, "Apple could offer a special on downloading songs from iTunes with the purchase of a cell phone and the plan. Clearly, we are talking about a computer-based solution using iTunes and not a download service via the carrier. Apple wants to make sure that the business model works first, before it develops its wireless world."