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June 3 2003 A new report from telecom research firm BWCS says that mobile music will
be to the wireless industry what MTV was to television. Mobile operators, device manufacturers, third-party developers and global media players are all lining up to cash in on mobile music services, according to a new report from BWCS. The Ledbury, U.K., research firm said that companies are gearing up to get more mileage out of music content and generate more revenues per subscriber. "Mobile music represents a great opportunity to build brand and drive results, if companies get the business model right," said report author Peggy Anne Salz. "Many of the leading players we spoke to for this report are moving full-steam ahead on a raft of music services. These will be more than just showstoppers; they will be to mobile what MTV was to television. They will revolutionize mobile entertainment." Salz pointed to the success of ringtones as proof that music content can be a money-maker. However, she said that there are still some obstacles involved with mobile music services -- namely a lack of devices, bandwidth and digital rights management. The report said media companies, concerned that physical music distribution channels are threatened, are themselves becoming application developers. "Up and down the value chain companies are moving on music services -- partly because they sense a business opportunity and partly because they have little choice," Salz said. Mobile music services are also being embraced by handset manufacturers and mobile operators, the report said. Offers range from simple news and concert alerts to services that provide users with advice, music recommendations and shopping tips from their favorite artists. "With mobile services, the companies can take the concept of a fan club or a fanzine to a new and much more lucrative level," Salz said. "Music is a consumer magnet. [I]f companies in the mobile space regard the next year as a ramp-up period, then they can cash in on a huge market opportunity." Companies still need to determine what features and services will appeal to consumers, Salz said. Rather than focus on enabling music file downloads to mobile devices, companies should develop and test services that aren't affected by factors such as memory size, playback capability and cost of download, she said. Salz suggested that services such as music gossip news, song dedications and personalized interaction with the artist in the form of IVR exchanges and on-demand interviews could be successful
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