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Jump-Starting Mobile Music in the US June 25, 2007

Posted by David Card in Media.

Generally, platform precedes content, and there’s no reason to think any different about music phones. On top of trying to change consumer behavior, there are still tough challenges in infrastructure and business models facing over-the-air music in the U.S.

With this in mind, Jupiter Research colleague Joe Laszlo has taken a hard look at one way to prime the pump for OTA music by targeting impulse purchasers. Some key findings from the report:

    JupiterResearch estimates that nearly 28 million music phones will be in US consumers’ hands at the end of 2007. However, if use follows the precedent set by ring tones, only a modest percentage of consumers will actually listen to music on their phones.
    Approximately 20 percent of online consumers are impulse music purchasers. This segment, already reasonably engaged in mobile music activities, represents the best target for becoming regular users of OTA music stores or services. Tying into key purchase motivators, such as radio play and friends’ recommendations, can help drive OTA impulse music purchases more broadly.

Suppliers must make sideloading work, and they should keep prices low and optimize services that complement iPod usage (e.g., synchronization, dual-use rights or bundles) rather than going head to head. At least for now.

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