Fear of an ITunes Planet


PaidContent links to a report by Dario Betti, senior analyst at Ovum who has an interesting take on the whole issue of mobile music. “Operators run the risk of strategic paralysis – they are being pulled in two different directions. They want to delay the launch to provide a better service, but they are afraid of online music downloads cutting them out of the game.” Betti thinks “that online music shops would move into the mobile market and displace the mobile-only players like telcos. Mobile operators are being pushed to take a position. The media and financial institutions are particularly interested in this area and are waiting for the operators’ next moves.” I think the ITunes-Motorola announcement has scared the bejesus out of operators, who are terribly worried about missing the boat…or should I say the carrier tax…if mobile music takes off. So far they are merely hedging.

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