Well, get your business plans out everyone, it’s time for another forward looking piece of research that reserves the right to be wildly inaccurate if it’s wrong, or entirely on the button if that’s the way things turn out.
This one, from Juniper, reckons that music rental services are definitely the way to go (notice that Napster isn’t used as the explainer… instead, the good Dr Windsor has referred to Omnifone as an example.. what the hell are Napster up to, eh? It really does wind me up…).
I can well believe it’s accurate. But 3.3 billion? Why not 3.5 billion, you know, round it up to the half mark? 😉
Mobile subscriptions which offer unlimited music downloads on a rental basis are expected to surge in popularity and will provide the majority of mobile revenues derived from original recordings, according to a new report from Juniper Research.
According to the report, the market for subscription-based music rental services will reach $3.3 billion by 2012, eclipsing the market for paid-for original recordings.
According to report author Dr Windsor Holden, ‘Music rental services such as those offered by Omnifone are incredibly ‘sticky’, in that once consumers have taken the time and effort to build up an extensive playlist, they will be increasingly reluctant to unsubscribe from that service and from the operator, thereby providing a significant boost to ARPU levels.â€Â
I’d just like to point out something my old granddaddy used to say, “Beware of Greeks bearing reports containing the word ‘sticky’…”
More stickiness at Juniper.