HAMPSHIRE, U.K.—The mobile music market may be on the cusp of shifting away from ringtones to over-the-air full-track music services, according to new research from Juniper Research.
The shift is being driven by new technologies like third-generation networks and music-centered handsets, and increasing competition, said the company. Revenues from ringtones are expected to fall from 81 percent of the total market this year to 51 percent in 2011, while OTA full-track music will increase from its current 9 percent to 32 percent during the period.
“Until now ringtones have dominated mobile music, but the balance is shifting,” said Bruce Gibson, research director at Juniper. “Full-track music has been the central offering of many 3G service launches around the world and as 3G usage gathers pace, the mobile music market is preparing to enter a new growth phase.”
Juniper predicts annual mobile music revenues will exceed $14 billion worldwide by 2011, with the Asia-Pacific region contributing 40 percent of revenues followed by Europe with 27 percent and North America with 18 percent.
