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| ONLINE AND MOBILE MUSIC INDUSTRIES TO MAKE $2 BILLION PER YEAR BY 2006 |
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BELMONT, MA - November 4, 2003 - By 2006, the US online and mobile music industries will generate more than $2 billion in annual revenue, according to a new report by Redshift Research, a leading authority on online and mobile music. A large part of this revenue will be paid to the music industry in royalties, making the new services a lifeline for the sinking music industry.
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The report, "The Economics of Online and Mobile Music," examines the outlook for Internet radio, online music stores, music subscription services and ringtones. It looks at how online services such as Apple's iTunes Music Store and the RealOne Rhapsody subscription service have grown since launch, along with data on the time US consumers spend listening to Internet radio. It also examines the popularity of ringtone and ringback tone services in the Far East, and looks at how ringtones are faring in the USA now they are offered by leading networks such as Sprint PCS.
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"The online music market in particular is growing quickly, helped by new services, high profile marketing partners and national advertising campaigns," said Matt Bailey, Senior Analyst at Redshift Research. "As a result, online music services are likely to deliver 130 billion songs to US consumers next year."
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As well as forecasting overall growth in the online and mobile music sectors, the report looks at the licensing agreements between services and the music industry. Based on this analysis, it forecasts the dollar amounts likely to be paid to record labels and music publishers as the new markets grow.
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"With CD sales continuing to fall, the question is stark - will online and mobile music services pay enough in royalties to save the music industry," said Bailey.
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About Redshift Research
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Launched in 2002, Redshift Research provides in-depth and impartial analysis of the digital entertainment industry. The company's services include market research, qualitative research, financial analysis and strategic consulting. Redshift Research was founded by Matt Bailey, a respected digital media analyst and former member of Webnoize Research.
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