Global mobile phone growth is being driven by music applications for the first time, according to a new study by TNS Global Technology.
The TNS Global Telecoms Insight study, which interviewed 16,000 respondents across 29 countries, found that music applications are now the fastest growing mobile service, with use of MP3 players on mobile phones having risen by 78 per cent and radio via mobile by a massive 140 per cent over the last 12 months.
The report claims that 43 per cent of all mobile users worldwide now listen to some form of mobile music on their phones. And despite concerns about over-saturation in Western markets, even the UK is witnessing strong growth in demand for these services, registering a 78 per cent uplift in use of radio and 43 per cent in use of MP3 players.
Growth in mobile music is occurring in every region worldwide. However, most rapid adoption has taken place in Latin America and in emerging Asia, suggesting that mobile operators wanting to capitalise on the huge potential in these markets need to be focusing efforts on offering quality music services to satisfy demand. In Latin America and emerging Asia, almost half (45 per cent) of users list FM/AM radio as one of the top-three influencers over which mobile phone they purchase – making it a more popular application than SMS (texting), internet access or even a camera.
Matthew Froggatt, Managing Director of TNS's Global Technology sector says, "Radio-enabled mobiles take away the need to have a separate music device like an MP3 player and should lead phone manufacturers to win the battle for control of the earphones.
"The increased use of radio in the Asian markets is also extremely important. It is driving a whole new wave of customers to service providers and has massive implications for spreading media communications out to a wider audience more quickly. The radio is a hugely underrated media tool which has suffered at the hands of TV music channels and the internet – this new outlet through mobile phones may help to sustain its life well into this millennium. In some markets, like India, launching a mobile phone without radio-listening capabilities is a major barrier to winning consumer sales."
Two thirds of young people aged 16 – 21 now listen to some form of mobile music on the go, but it is also surprisingly popular with more senior generations: The study shows that 20 per cent of people aged 51 – 60 tune in to music on their handsets, rising to 64 per cent of those aged 16-21. The gap between availability and usage of mobile music is very small – suggesting this is a hugely popular service, with 82 per cent of those with access to mobile music on their phones using this service, globally. However, this falls to 66 per cent of UK mobile users – again suggesting it is the emerging markets where operators need to be focusing their efforts on mobile music.
However, the study also reveals that the music industry needs to be cautious of seeing this as a money-spinner. Twenty-two per cent of global users now sideload music (transfer from PC or laptop) compared to just 16 per cent who download directly.
Froggatt continues: "Many consumers already have their music libraries in a digital format and are often put off downloading directly to their mobile because of high price perceptions. Using the phone as a music player gives device manufacturers an opportunity to increase consumer involvement with their products, but for network operators and music rights owners, incremental revenue growth through downloading may be limited."
He concludes, "For the networks, enhanced real-time data services, like mobile internet or location-specific information may be a better bet to increase consumer spend."