Analysis of O2 Mobile Music Service

UK mobile operator O2 launched a music download service for its wireless users: an analysis of the effort: “Despite the high quality audio, users can start listening to tracks inside around 20 seconds. Almost as important, that will sometimes be earlier than the tracks are made available through other channels, such as record stores.”

TheFeature: “There are several critical issues that O2 will need to resolve to prevent failure. Since the service requires a separate music player, an expensive GBP 100 music player at that, O2 is asking to compete with the iPod, Rio and other devices that offer more storage and greater selection. O2 obviously does not have the muscle to negotiate decent fees, like Apple or BuyMusic and to charge for network use on top of those fees will probably price tracks out of the hands of those most likely to download them.”

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