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Sunday, May 31, 2009

Mobile music is doing fine… but ad-funded services may see problems

Revenue from streamed mobile music services and full-track music downloads is expected to exhibit strong growth over the next five years, doubling from $2.5 billion this year to nearly $5.5 billion in 2013, according to Juniper Research.

It says so-called traditional mobile music services – particularly ringtone sales – are declining across many markets but the uptake of more sophisticated offerings is growing. Juniper also says music services launched using an ad-funded model face a potential shortfall in revenue following a global reduction in advertising budgets that could see cuts of up to 50% in spending.

Most music revenue from the next five years will come from the Far East & China region, followed by Western Europe. [Press release]

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Author: The Fonecast
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