February 23, 2005
Success of Plain Mobile Music Downloading Services Questionable, Says Berlecon Research
The predicted success of mobile phone music downloading is questionable, according to a research report by Berlecon Research, via Tekrati.
"According to the Berlecon analysis, when looking beyond ringtones, music downloading is currently at the centre of attention. Therefore‚ the mobile music strategy of most European mobile operators is mainly directed towards the downloading model.
Mobile music downloading, however, has some limitations, that make its long-term success as a profitable business model questionable. Berlecon Research advises that other approaches to bringing music to the mobile phone exist and are equally -- if not more -- attractive to users than downloading.
As mobile music downloading is a low-margin business, Berlecon does not expect the mobile phone to become the most attractive distribution channel for music. Instead, it holds a significant potential as a marketing channel.
The Berlecon Research brief, "Mobile Music: More than Downloading - Alternatives to the Dominant Model and their Implications", helps companies to shape their strategy for the mobile music business.
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