Roughly a third of U.S. cell phone users find multimedia capabilities, including music and video, to be among the most important features of their mobile devices, according to a survey commissioned by Access Systems Americas Inc. and conducted by Amplitude Research Inc. Thirty-four percent of those surveyed said having music on their phones was important, while 33% said the same of video.
While music and video trailed text messaging (73%) and cameras (67%) by a wide margin, the survey implies that multimedia capabilities are increasingly seen as necessary by consumers. That's good news for companies that have recently made strides into the nascent mobile music market, including Nokia Oyj [NOK], RealNetworks Inc. [RNWK] and the Verizon Wireless division of Verizon Communications Inc. [VZ], as well as a handful of startups in the sector.
Nokia is preparing the launch of its Comes With Music initiative, which will permit users to download unlimited DRM-protected music files to their mobile devices for one year. Earlier this week, Warner Music Group Corp. [WMG] became the third of four major labels to forge a partnership with Nokia under which it will supply tracks to Comes With Music phones. EMI Group plc is the lone holdout, although observers say a deal is likely soon.
RealNetworks and Verizon Wireless recently teamed up to launch their V CAST service, which will allow over-the-air downloads of songs to mobile phones as well as an extended version of RealNetworks' Rhapsody music subscription service for wireless devices.
Venture investors have backed a few early-stage companies seeking to capitalize on the mobile music market as well. Ignition Partners and Voyager Capital led a $7.9 million round in October 2007 for Seattle-based startup Melodeo Inc., which allows users to stream iTunes playlists to their cellphones, while mobile download technology developer Catalyst Mobile Inc. raised $10 million from Sofinnova Ventures and DCM the same month. Mobile music commerce platform Groove Mobile Inc. has raised $32 million, including a $6 million round led by Orix Venture Finance in September 2007. -- Paul Bonanos
See July 2 press release from Access Systems America
See July 1 post on the agreement between Warner Music Group and Nokia from Tech Confidential
See June 30 press release from RealNetworks and Verizon Wireless
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Suggest you take a look at Rubicon's iPhone User Study for additional info...
http://rubiconconsulting.com/insight/whitepapers/2008/04/the-apple-iphone-is-easily.html