Falling Sales On Mobile Music Services ,Prepare To Rise!!!

Mobile music services have been on a falling rate in the last few years but prepare to see the rise in these sales because this month three new mobile music services are being launched which will send the sales flying.

Since the release of the new iPhone you may think that its the talk of the town...well the new unlimited downloads service which has been launched from Vodafone and Nokia's new music store have also been in mention all around the world. Although CD sales have decreased globally on a vast scale since 2000, many people can see a better future by using new mobile music services. The industry is developing itself to create an easier and wider way to attain music and also do this legally which provides closure for the audience and money for the institution.

IFPI director of technology Richard Gooch believes "There are cultural differences, and there are network differences at play so it's not simply the fact of having a mobile music service but in those countries where they have moved towards the ‘holy grail’ it's generally been on the back of mobile.” This shows that "Mobile is obviously extremely important because you have the market reach and secondly, the types of demographics that are very important to the music industry will almost certainly have music-enabled mobile phones."

The UK network ‘Orange’ displays the rise in music sales and how they have increased by 70% through the year and is expected to double by the end of 2007. They expect the UK mobile music market to almost double from a predicted $83m this year to $156m in 2011. The music industry's optimism is underscored by several barriers to mass market mobile sales that have disappeared, such as high data delivery tariffs. Although prices have fallen, payment is simpler and handsets easier to use, telecoms experts still list several obstacles to record labels' fortunes being transformed.

"Can something like this save the music industry? Well, Music Station per se in the short term no. Because firstly it's only on Vodafone at the moment and secondly it's very cheap, meaning that the actual revenue for the music industry per user can only be quite small."

You be the judge!!!!

1. In what ways will the new services appeal to there target audience?
2. What two main networks are structuring the new services?
3. How will the new services negatively and positively affect the institution?
4. Do you think the new services will be good for the institution and why?