Wireless Music Market To Surge

The domestic market for cellular full-track OTA (over-the-air) delivery of music via 2.5G and 3G networks is clearly still in its infancy, despite the increasing levels of media coverage and industry buzz around the topic. Indeed, wireless full-track OTA delivery has yet to be launched in the U.S. A number of challenges facing the wireless music value chain have impeded development of this emerging market. Key near-term constraints include: lack of available handsets and 3G networks, digital rights management (DRM) complexity, competition from incumbent services, and business pricing models and practices.

"IDC believes that there is opportunity for wireless music services to include a range of bundled services designed to complement full tracks, and to deliver music to consumers however and whenever they want it. Wireless devices and networks are emerging as a great new channel for the delivery of not just a la carte tracks, but subscription-oriented packages that include radio and song identification technologies, ring tones, ring back tones, music videos, concert information alerts and more," said IDC's Lewis Ward, senior research analyst, Wireless Communications Research, and David Linsalata, research analyst, Mobile Devices.