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Streaming Music Again Tops Video and MP3 Files as Cell Phone Multimedia Favorite

Several factors point to rapidly increasing consumer acceptance of mobile video and music multimedia services from wireless carriers. Interest in mobile video has inched up during the past three years but streaming music still leads the way, reports In-Stat (http://www.in-stat.com). Streaming music offers many marketing benefits because it is most like familiar and successful mobile consumer services, the high-tech market research firm says. One plus for carriers is that streaming is not subject to the same Digital Rights Management issues involved with music file sharing.

“Streaming music, which could be marketed like satellite radio services, such as XM and Sirius, holds the most interest of all mobile multimedia for consumers, and it may be easier to deliver than video,” said David Chamberlain, In-Stat analyst.

Recent research by In-Stat found the following:

  • According to three years of In-Stat surveys, consumer interest in mobile video is increasing, albeit not as quickly as interest in mobile music. In 2006, 14.2% of respondents could be considered likely adopters of mobile video.
  • In-Stat forecasts that revenue from mobile video for entertainment purposes could grow to more than $6 billion per year by 2011.
  • In the In-Stat mobile multimedia consumer survey, 44% of respondents who own music-playing handsets have not added any music files to their phones.

The research, “Consumers are Warming to Mobile Multimedia” (#IN0602910MCM), covers the worldwide market for mobile multimedia consumer services. It includes results of In-Stat’s survey of more than 1,000 U.S. wireless users conducted to determine their interest toward four types of mobile multimedia: streaming video (similar to cable TV), downloaded video clips, streaming music (similar to digital radio) and downloaded music files. It also provides comprehensive demographic and wireless usage habits of consumers that are most likely to adopt each of these multimedia types. Also included are global forecasts of video and music files delivered over cellular networks.

For more information on this research, please visit: http://www.instat.com/catalog/Wcatalogue.asp?id=231 or contact Tina Sheltra at 480-609-4531 or tina.sheltra@reedbusiness.com. The price is $3,495.

About In-Stat
Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat’s experienced staff and in-depth research to support critical business, product and technology decisions. In-Stat’s insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Regular and ongoing end-user demand and primary research surveys underpin much of the analysis, enabling In-Stat to provide incisive market knowledge and guidance on future market opportunities.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.

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