The Economics of Mobile Music

More details on UK radio group Chrysalis’ plans to launch a mobile music service…if the service is successful, it will increase revenues at Chrysalis by at least 10 per cent within three years, adding about £18m to turnover and £6m to profits.

The new unit, Chrysalis Mobile, will employ six people, and has cost just £500,000 to set up.

Here’s how it will work: Potential customers will hear a song on the radio. They will then send a text message to download it – for £3 per song – to their phone. Chrysalis will take 95p of this (or around 45p, as and when it persuades radio stations that it does not own to offer the service).

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