PORT WASHINGTON, N.Y.-Wireless users will pay substantially more to download full songs to their handsets than to their PCs, according to a study by The NPD Group.
The research firm’s first look into mobile music found 20 percent of all consumers are interested in buying MP3-capable phones, and three-fourths of those are willing to pay an extra $25 for such music-friendly devices. Further, subscribers will pay as much as $1.75 per song downloaded to their phones, according to the report, nearly twice the 99-cent benchmark for PC downloads established by Apple Computer Inc.’s iTunes.
The figures could indicate a huge opportunity for carriers looking to cash in on mobile music download services. Analysts agree full-track wireless downloads must be priced well above $1 each for operators to generate substantial revenues from such offerings.
“Mobile music is poised to be the breakout content category of 2006,” said Clint Wheelock, vice president of wireless research for NPD. “With a major emphasis and heavy promotion by wireless carriers, device manufacturers and the music industry itself, you can bet that consumers will be hearing a lot about new music services, and NPD’s research indicates that many of them are ready to listen.”
Tellingly, however, respondents generally preferred to transfer music from PCs to phones rather than wirelessly download music. More than half of respondents said they’d prefer to synch their phones with their PCs via data cables, in contrast to 37 percent who said they preferred to download tunes directly to their handsets.
“More and more consumers are migrating their music libraries to their PCs,” according to Russ Crupnick of the company’s Music & Movies division. “It’s a simple process to download tracks directly to the desktop from the Web, then synch the entire music list with existing home audio systems and portable MP3 players-including MP3-enabled mobile phones.”
