Thursday, May 18, 2006

Strategy Analytics: Cellular Music Services Overpriced by up to 85 Percent

This one shouldn't be so surprising. According to Strategy Analytics, "while end users find Sprint Music Store faster and easier to use than V CAST Music, very few are willing to pay the current price premiums associated with downloading music to their mobile devices."

Strategy Analytics found that "Sprint's Mobile Music Store out-scored Verizon Wireless's V CAST Music by a massive 21 percent. The Sprint service was preferred to V CAST Music for both `perceived network performance' and `ease-of-use.'

Paul Brown at Strategy Analytics said, "Strategy Analytics has identified significant levels of consumer interest in mobile music services, and the current services - especially Sprint Music Store - meet or exceed user expectations in terms of performance and convenience. However, price remains a considerable barrier to acceptance."

Kevin Nolan at Strategy Analytics added, "Our research suggests that users are willing to pay a premium of around 35 percent for the convenience of downloading tracks to both their wireless devices and PCs - subject to reliable network performance. In our view, the current 100 to 150 percent premiums charged by the main operators make adoption of these services highly unlikely."

The Sprint Music Store is pretty good and my son likes it a lot. I guess there is a benefit of being able to download a song anytime, anywhere, such as when listening to the radio in the car, and you want to get a song you just heard. The price points will have to drop though....