If I told you that Gartner Research predicts that global spending this year on mobile music (e.g., ringtones, digital music files, etc.) will end up around $13.7 billion worldwide, would you believe me? Compare that to Gartner's prediction for 2010 when it says the figure will jump to $32.2 billion.
All told, the online music industry has sold over $2 billion (as of last week), Gartner is making some pretty bold predictions about the music industry and where it is heading (P2P piracy notwithstanding). Gartner attributes much of its rosy projections to increasing consumption in the Asia-Pacific and specifically, Japan.
Many analysts and consumers expect that online music-only devices will be completely displaced by mobile phones in the coming years. Why carry two devices? The mulitfunctional music-enabled phones caught fire with Verizon Communications (NYSE:VZ)' Chocolate and others, and will soon be followed by Apple Inc. (NASDAQ:AAPL)'s already legendary iPhone. Analysts expect the iPhone, with a June release, to be the tipping point for this change.
Ringtones, and more recently ring-back tones, have been the primary drivers of growth in the mobile music sector thus far. When my mother's phone rang last week to the tune of Van Morrison's "Brown Eyed Girl," you knew people were catching onto the technology. Now if I can only get her to text!
In terms of the global market, consumers in the Asia-Pacific region -- especially Japan -- are expected to remain the biggest spenders on mobile music through 2010, followed by those in Western Europe and North America.