Sony banks on mobile downloads in Germany

The world's second-largest music label, Sony BMG, hopes fresh local talent, songs sold over mobile phones and music CDs with video will help offset falling CD sales and keep revenues steady in Germany, reports Reuters.

"The label expects the German music market to drop another 4 percent to $1.26 billion this year, but Steinkamp said if sales such as those from mobile phone ringtones and Internet downloads were added in, the drop would only be 2 percent.

Sony BMG expects mobile and Internet downloads to double their share of revenue to 4 percent this year, as digital players such as Apple's iPod become more popular and mobile phone operators start selling more music.

The iPod is a great thing," Steinkamp said. "But the average user only buys two to three tracks a month for 99 cents -- that's not really a huge business for us."

"Mobile operators on the other hand are throwing loads of marketing money at selling music tunes," he said, adding he expected digital music sales to rise to 10-15 percent of Sony BMG's revenues by 2007."

emily | 1:19 PM | |
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