Digital music in the United States will increase from $1.98 billion in 2007 to $5.34 billion in 2012 according to the Yankee Group, but mobile will only account for 20 percent of that, or $1.068 billion. Overall this will not replace lost CD revenue, but Yankee avoids the mistake of saying that the “music industry” is in trouble — it’s actually the record labels which are in trouble, and the analysts predict that artists will increasingly keep the lion’s share of music revenues by selling directly to the consumer. In terms of handsets, Yankee predicts that by 2012 there will be 266 million music-capable handsets in the US, but only 9 percent of mobile users will actively use their handset as a portable music player. Mind you, I would like to see what percentage of the population actively use a portable media player of any type…
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