W. Europe Mobile Music Market Poised to Soar

July 25, 2008

This article is included in these additional categories:

Europe & Middle East | Media & Entertainment

Western Europe’s mobile music scene is more advanced than that of the US – though the US is the world’s largest retail market for music… yet lacks in mobile infrastructure compared with some of Europe, according to eMarketer.

The UK is the biggest individual mobile music market in the EU-5 (UK, France, Germany, Italy, Spain), but the other are reporting sharp growth as well, according to eMarketer.

emarketer-mobile-music-spending-by-format-eu-5-2007-2012.jpg

  • EU-5mobile music retail revenues are forecast to reach $1.48 billion in 2012, growing from just $267 million in 2007 and an anticipated $431 million this year.
  • Those spending figures are broken down into full-track downloads, which are expected to form roughly 40% of spending in 2008, and mastertones/ringback tones/other.
  • Full-track download spending is expected to reach 50% of all mobile music spending by 2012.

Ad-Supported Mobile Music

eMarketer predicts that ad-supported mobile music in the EU-5 will reach $170 million in 2012, up from $4.6 million in 2007.

“Given consumers’ reluctance to pay for music on their phones, marketers are finding new opportunities to partner directly with carriers, labels and even music artists themselves,” says John du Pre Gauntt, eMarketer senior analyst and author of the new report, Mobile Music: Ads to the Rescue.

“Direct deals between brands and bands are no longer anomalies but are part of a growing trend by both parties to bypass intermediaries and go directly to customers.”

Marketers will account for a greater proportion of that overall spending as the ad-supported model for mobile music gathers steam, according to eMarketere.

“Mobile works better as a marketing and customer relationship platform than it does as a retail sales platform,” Mr. Gauntt says. “Bands and artists are increasingly using mobile to form direct relationships with their fans, which are then monetized through other means, such as tickets to live shows, merchandise and fan clubs.”

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