Forecast: Mobile music revenues to $17.5B by 2012

The total value of the international mobile music market will grow to over $17.5 billion by 2012, galvanized by subscription services and full-track downloads, according to a new report issued by market analysis firm Juniper Research. Juniper forecasts that the China/Far East region will remain the largest mobile music marketplace, generating roughly 43 percent of annual sales over the next five years. However, ringtones--long the marquee attraction of mobile music services, accounting for 62 percent of the mobile music market in 2007--will total just 38 percent by 2012, a decline Juniper blames on an unsustainable pricing model.

"With some operators now offering full-track downloads at a comparable price to iTunes, there is little justification for a ringtone retail price point that is in many cases two or even three times this level," said report author Dr. Windsor Holden in a prepared statement. "Furthermore, those aggregators whose portfolios are largely dependent upon the polyphonic ringtone will be unable to survive in the medium term unless they both rethink their pricing strategies and substantially diversify their product portfolios."

For more on the Juniper report:
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