Mobile Music@MIDEM

Thomas Husson | January 19, 2006, 03:26 AM

The music industry is gathering at the MIDEM in Cannes from Sunday onwards. No doubt mobile music will be at the centerpiece of many announcements.

Record labels often claim that 5-6% of their total revenues derive from digital music, which compensates declining prices and margins on physical sales. However, the vast majority (roughly 2/3) of the digital revenues come from mobile and not from the Internet, simply because truetones are an increasing source of profits.

Mobile operators are also keen to announce they manage to increase their data revenues because voice and SMS are likely to become a commodity in the next few years. Vodafone and SonyNet Services recently announced the launch of a new service called 'Radio DJ' (click here for the full PR), an unlimited music streaming offer to be rolled out in 20 countries worlwide. The interesting thing is about the personalization of the service (with like/dislike options) making the most of mobile phones unique dimension. The service is already available for SFR clients in France, even though not really marketed yet.

The combination of the music content and the P2P communication platform is highlighted in the Push Music service, currently under development in Sweden : sharing music via bluetooth.

Handset manufacturers are benefiting from this trend. Sony Ericsson announced yesterday to have sold 3M Walkman-branded phones since August 2005.

Clients, if you want to have the full picture of what's happening in the mobile music space, have a look at our latest report here.