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Future Of Music Is The Phone

This is kind of incredible: research firm Gartner predicts that global spending on mobile music will hit $32.2 billion by 2010, spurred by consumption growth in the Asia-Pacific region and Japan. Perhaps even more incredible: Gartner says music spending on mobile phones this year will be $13.7 billion worldwide.

When you juxtapose these numbers with the $2 billion sales "milestone" set by the online music industry last week, you get an idea of where the market is heading. Many analysts expect that online music devices will be completely replaced by the mobile phone in the coming years. Apple's new iPhone, slated for a June release, is expected to be the harbinger of that change.

Ringtones have obviously been the driver of mobile music sales thus far. Next to text messaging, ringtones are the second most popular mobile data service. Young mobile users in particular see them more as a form of self-expression than a way to consume music.

Gartner's mobile figures also highlight the stunning discrepancy between America and the rest of the world in terms of mobile-content consumption. Indeed, the Gartner report says the 2010 figure will be driven mostly by Asia and Europe, with North America coming in third.

Read the whole story at Information Week »

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