Analysts say mobile music ‘must be free’

A report by analysts Screen Digest (Found via PaidContent:UK) claims that mobile music sales will reach 3.2 billion Euros by 2012.

But the report also claims full music tracks will only make half of that figure, with ringtones and other items contributing half. And the author of the report, Christine Binns goes on to say:

“Paying for music is progressively becoming a niche activity as the value of recorded music is already in steep, possibly terminal, decline. Bundled music attempts to tackle this problem head-on, providing a way for every player in the value chain to benefit. Even offering music for ‘free’ at point of delivery is not going to be enough to ensure uptake of the service – the customer experience and handset design have to be right if mobile music services are to become lasting propositions.”

Mobile music subscriptions are predicted to hit £721 million in 2012, almost double the £408 million predicted for full individual tracks. And the report goes on to say that it’s almost impossible to compete with iTunes.

See here for the full report: Mobile music: It’s got to be free.

Now might be a good time for the music industry to start panicking. Not only do you have to give away your music for nothing – but even that might not force people to listen!