Blog Post

Mobile Music Buys May Bring Meager Carrier Profit

Here’s a timely story from Reuters…”Despite all the excitement about wireless song purchases, such mobile music is likely to deliver much poorer profit margins than wireless carriers are used to from phone calls or other services such as ringtones, one analyst said.”
The general concensus is that if carriers match iTunes 99c price tag their won’t be much profit to share and if they price it significantly higher there won’t be a lot of downloads…While some carriers believe the sheer fact that the music is mobile will encourage customers to pay a premium analysts have other suggestions. They include song recognition services, subscription services or offering packages — $4 for a package that could include a full song, a musical ringtone and maybe some graphics all related to the same song.
Related stories:
Apple iTunes Phone With Motorola Launched
Microsoft Links with Orange For Mobile Music?
Indian Music Industry’s Bitter Pill