Music streaming boosts mobile sales: study

According to a study by Informa Telecoms & Media,

Mobile operators should ditch their music download stores and opt for partnerships with music streaming services if they want to generate more revenue and make customers stick.

In number terms,

A typical Western European operator -- with 20 million subscribers -- could achieve revenue benefits of 77.7 million euros ($109 million) per year from new users, a rise in mobile data and smartphone sales; where revenue saved by not having self download stores would also contribute to the figure.

The research suggests that the right approach in this context for a large Western European operator is to partner with a third-party music service rather than offering their own service.

Adrian Blair, head of European business development at Stockholm-based music streaming service Spotify, gives credence to the study saying , "The music download services operators launched prolifically over the last five years are commodities which have almost universally failed to deliver,".

Unlike music download services where tracks are stored in one place, streaming services are suited to work on several platforms, the study finds.

The study cites successful examples of operators such as Denmark's TDC, South Korea's SK Telecom and Swedish TeliaSonera who offer their own streaming services or, in the case of TeliaSonera, partnered with Spotify. --------

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