Music on Mobile Terminals

The market for mobile entertainment content is predicted to develop positively in the next couple of years, providing profitable opportunities for suppliers in the related industries. During 2005, the hype around mobile music distribution and consumption has intensified noticeably. However, portable audio players, such as iPod, are also very popular among consumers, and generally provide better music capabilities than mobile terminals. In addition, consumers have become accustomed to acquiring music through the Internet. Especially the Apple iTunes Music Store has obtained substantial success, and recently celebrated its one billionth download. Consequently, these alternatives to mobile music distribution and consumption could possibly inhibit the adoption of mobile music services. In this thesis, a qualitative assessment of the market for mobile music distribution is conducted, including identification of opportunities and barriers regarding successful market adoption. Both the demand side and the supply side of the market are studied, including end user expectations towards mobile music services and identification of the primary participants of the mobile music value chain. The thesis deals with both a technological and a socioeconomic perspective, and the theoretical and empirical frameworks of the thesis are based on an extensive literature review, including academic sources, industry analyses and relevant company information. It is found that the market for mobile music is still in its developing stages, and therefore it is quite difficult to exhibit one definite outlook. Nevertheless, it is concluded that substantial market opportunities exist, although it is necessary that several barriers regarding broader market adoption are overcome. The thesis has been prepared over six months and the workload amounts to thirty ECTS credits.