Asia leads mobile phone music revolution

Music sales growing faster than handset market

Simon Burns in Taipei, vnunet.com 17 Oct 2006

Asia's mobile phone users could be spending more than $9bn a year on ring-tones and music for their phones by 2010, research firm In-Stat predicts.

China and India will drive the growth, but Japan will continue to be the region's largest single market for mobile music, according to analyst forecasts.

New phone technology is expected to shape the growing market. "The availability of 3G network capacity and music-friendly feature phones will drive enhanced adoption of these services," said Frost & Sullivan industry manager Pranab Mookken.

Bryan Wang, managing director of In-Stat's office in Singapore, added: "It is ring-tones that have been the primary driver for mobile music growth in the past, but this will change as new handsets equipped with digital music playback create a new market.

"As consumer preferences change, the future growth of the mobile music industry rests on ring-back tones and full music tracks."

In addition, more advanced music services will provide the impetus for mobile subscribers to upgrade to newer technology.

"Digital music is expected to fuel growth of the mobile market and provide 3G services with a much needed impetus," said Mooken.

Companies selling mobile music in Asia will see regional revenue leap from $3.3bn last year to $9.3bn by 2010, In-Stat predicts. The firm includes ring-tones, full music tracks and ring-back tones in its definition of mobile music.

Asia will become the world's largest market for mobile music by 2011 with some 40 per cent of global sales, according to research firm Juniper Research.

However Juniper's figures suggest less rapid growth than In-Stat's data. Juniper forecasts the global market to exceed $14bn by 2011, with Asia accounting for more than $5.6bn annually.

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