Mobile Music Hits Big Time

Music downloads are increasingly catching the fancy of mobile and computer
users and without doubt the coming days may see the music industry clock some
big-ticket growth. Players including the likes of Microsoft, Yahoo and Apple are
foraying aggressively into the distribution of music tracks enabling people to
download tracks onto their hard drives and portable devices.

Microsoft has entered the online music market with MSN Music giving the
jitters to its formidable foe Apple's iTunes. Notwithstanding the increasing
demand for downloads, Yahoo Inc has also ventured into the download market with
its plans to buy music software company Musicmatch.

While this is the global scenario, in India, Microsoft tied up with Saregama
India recently to upload its music tracks on the latter's website. All this
exemplifies that digital music is transforming into a big business. Jupiter
Research estimates that sales from online music subscriptions and song
downloading is expected to soar during the next five years, rising from an
estimated $271 mn in 2004 to $1.7 bn in 2009. Equally, the Rs 600 crore music
market in India is set to rake in more money from licensing music to mobile
phone companies. As per the industry estimates, music royalty from telecom firms
contribute 3-5% to the music industry's revenues and it is slated to grow to
around 30% in 2005. In 2003, the domestic music industry collected Rs 20-25
crore from mobile-based services-from ring tones to sing tones and music
dedications such as "send a song" service.

Though there's an increasing demand for music downloads-be it through the
Internet, or through hand phones-revenues from these digitized services will
grow in a big way when broadband starts reaching homes. The rise in revenues may
thus be even more dramatic.

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