Blog Post

Mobile Music Biz: Growing Pains Soon?

The mobile music market is growing at a healthy rate, but Josep Anton Aliagas, CEO of Spanish mobile content portal Arena Mobile, has warned of looming problems for the industry in a talk at the CommunicAsia Summit.
“Pulling out a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis chart of the future mobile music landscape, Aliagas listed three key threats that are likely to confront content providers. They are competition from free Web portals, content piracy and yet-to-mature digital rights management technology.”
All these things are likely to slow mobile music rather than stop or reverse it…Aliagas also talked about the pricing problem of mobile music, both the high cost of music downloads and the uncertainty of extra data charges. “He feels that the pricing of music download services is still too high today because everyone in the mobile music business chain – the record labels, content providers, publishers all mobile operators – “all want to get a huge part” of the business.”
Another report of his talk notes that he said “operators get an average of more than 50% of revenue per customer bill for cellphone music while content providers like Arena receive less than 10%…”I find it really unfair… we should rethink the value chain,” Aliagas said. “If we create a win-win model for all the parties in this business, the business is going to grow and we are going to develop a huge industry but all the parties have to grow together.”
He also noted one of the “strengths” is that people are used to paying for things on their mobile phone.
Related stories:
Mobile Music To Hit US$13 Billion By 2011 — Informa
US Mobile Music Downloads Set to Explode — IDC
IDC On The “Mobile Music Bigger Than Online” Prediction