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Sunday, 18 November 2007

Home Study Mission.

Dial M for music
labels bank on mobile downloads

Record labels are predicting that this month's launch of three new mobile phone music services will usher a return of rising sales after years of decline.
Apple's music-playing iPhone grabbed the headlines with its arrival in Britain last week. But music executives are just as excited about the new unlimited downloads service launched on Vodafone. At the same time Nokia, the world's largest maker of mobile phones, has opened a digital music store here.


Some industry insiders are predicting a revolution that will see mobile downloading approaching that of highly developed markets such as Japan.
The world's biggest music company, Universal, is backing the MusicStation, the Vodafone service. Rob Wells, head of digital at Universal's international division, predicts the £1.99-a-week subscription service will have mass market appeal. "We are at a turning point in the UK," he says, predicting digital music sales here could offset falling CD sales within a year.
Global sales have been falling since 2000, down another 5% to $19.6bn (£9.4bn) last year, according to industry group IFPI. Although digital sales are rising fast, at a tenth of the total market, they have yet to make up for tumbling CD sales.


One place where the gap has been closed is Japan. Total music sales there edged up 1% last year. Japan's success in offsetting falling CD sales - something the IFPI calls reaching the "holy grail" - is largely attributed to the prevalence of mobile downloads.
IFPI director of technology Richard Gooch sees lessons for other music markets. He says: "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.


1.Which Mobile phone company has launched the new downloading service?

2. Which other Mobile phone company has opened a digital music store here?

3.Will this be successful?

4.What are record labels predicting?

1 comments:

NaBz said...

1. Vodafone

2. Nokia

3. Nobody knows for sure if it'll be successful or not.

4. Record lables predict digital music sales here could offset falling CD sales within a year.