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Sound business models key to wireless music’s future

LONDON-Satisfactory business models have yet to be established between the mobile industry and the music industry, according to “Mobile Music,” a new executive briefing from Baskerville/Informa Media.

As advanced handsets offer the music industry more opportunities in the mobile content space, revenue-sharing and other business models will need to be revisited, according to the Baskerville/Informa Media. The group forecasts that by 2008 the value of ring tone sales will reach $4.7 billion and will account for around 12 percent of total music sales.

“There’s a real sense of optimism around mobile music at the moment, with content owners, service providers and mobile operators all looking to break free of a dependence on ring tones and to grow a much more interesting business,” said Steve Mayall, co-author of the report. “But as the revenues in mobile music become more compelling, arguments over revenue shares look stet to increase tensions, and underneath it all there is a danger that mobile piracy could decimate this still fragile business.”

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