July 5, 2007
Little harmony in mobile music
The arrival of Apple's iPhone poses a dilemma for mobile phone operators. The FT reports.
The device is expected to push more people to access music on their handsets, and operators may gain kudos by having the much-hyped device in their portfolio.
But mobile operators have invested heavily in their own music services, and may be reluctant to promote Apple's rival iTunes service.
Some operators, like Vodafone, feel strongly they want to retain a key role in selling music to handsets.
“We would absolutely hope to give iTunes a run for its money,” said Paul Kenny, content and product executive for Vodafone Music. “We think it is important to keep the Vodafone label on our music services. We think it is something we can compete on.”
Such sentiments could make signing a deal with Apple difficult.
... Mobile phone operators have so far struggled to get their music download services to take off, despite a head start of several years. High prices, confusing payment structures and a lack of music-enabled handsets have all been blamed for slow take-up.
And thanks to this patchy track record, many in the music industry are welcoming new entrants.
“New devices like the iPhone and new innovative services like MusicStation will help us drive the digital music business forward at a faster rate,” said Rob Wells, senior vice-president at Universal’s international digital music business."
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