Mobile operators and music labels are currently fighting over the mobile music industry, or specifically which industry should get the lions share of the revenue. It’s true the operators take an indecent cut of the revenue, but it’s nigh on impossible to feel sorry for the music labels, who have been gouging everyone for decades. However, new systems are popping up that allow artists to sell directly to the consumers. One version uses reverse billing via SMS, but rents low-cost short codes to ensure the operators don’t gouge the musicians with high fees for the SMS.
These smaller retailers won’t be making huge headlines with the money they generate individually, but it’s feasible the system could provide extra cash to the artists themselves…
—Billboard Launches Mobile Music Destination With MForma