Streamed mobile music services to remain strong

Despite the impact of the global recession, revenues from streamed mobile music services and full track downloads are expected to exhibit strong growth over the next five years, according to a new report from Juniper Research.

The report found that the combined revenues from these services are expected to increase from $2.5 billion in 2009 to nearly $5.5 billion in 2013, driven by a array of factors including a greater variety of applications and content, all-inclusive data packages, consumer friendly UIs and an increase in handset storage capacity.

According to mobile music report author Dr Windsor Holden: “While some of the more traditional music services – most notably polyphonic ringtones and realtones – are in decline across many markets, we’re now seeing a surge in the adoption of more sophisticated offerings. Recent positive developments, such as Apple announcing that iPhone customers can use the 3G network to download full tracks, will offer a further stimulus to growth.”

However, the Juniper report found that those music services launched using an ad-funded model face a potential shortfall in revenue following a global reduction in advertising budgets: under the worst case scenario, it warned that adspend could reach just 50% of pre-downturn estimates.

Other findings from the report include: Ringback tone revenues will exceed those of ringtones by 2010 as service adoption increases outside Asia; The Far East & China region will account for the largest share of mobile music revenues throughout the 2009-2013 forecast period, followed by Western Europe; Aggregators must expand the depth and breadth of their portfolios beyond ringtones if they are to remain competitive.

The Juniper Research report includes historical, current and forecast market sizing through to 2013, including data on service usage, user numbers, pricing, user spend and end user revenues together with scenario-based forecasts of the impact of the economic downturn on mobile music adspend.