Mobile users tune into streaming music

Streaming is not subject to the same DRM issues involved with music file sharing

Mobile phone users are increasingly waking up to the joys of mobile video, but streaming music still leads the way as the killer mobile entertainment application, market watchers report.

Research firm In-Stat said that streaming music offers many marketing benefits because it is most like the familiar and successful mobile consumer services.

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 In-Stat analyst David Chamberlain.

A recent In-Stat report found that, over the past three years, consumer interest in mobile video is increasing, albeit not as quickly as interest in mobile music.

In 2006, In-Stat found that 14.2 per cent of respondents could be considered likely adopters of mobile video. But the analyst firm forecasts that revenue from mobile video for entertainment purposes could grow to more than $6bn per year by 2011.

However, the In-Stat mobile multimedia consumer survey found that 44 per cent of respondents who own music-playing handsets have not added any music files to their phones.