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Streaming Music Again Tops Video and MP3 Files as Cell Phone Multimedia Favorite


SCOTTSDALE, Ariz., August 22, 2006 - Several factors point to rapidly increasing consumer acceptance of mobile video and music multimedia services from wireless carriers. Interest in mobile video has inched up during the past three years but streaming music still leads the way, reports In-Stat ( Streaming music offers many marketing benefits because it is most like familiar and successful mobile consumer services, the high-tech market research firm says. One plus for carriers is that streaming is not subject to the same Digital Rights Management issues involved with music file sharing.

“Streaming music, which could be marketed like satellite radio services, such as XM and Sirius, holds the most interest of all mobile multimedia for consumers, and it may be easier to deliver than video,” says David Chamberlain, In-Stat analyst.

Recent research by In-Stat found the following:

* According to three years of In-Stat surveys, consumer interest in mobile video is increasing, albeit not as quickly as interest in mobile music. In 2006, 14.2% of respondents could be considered likely adopters of mobile video.
* In-Stat forecasts that revenue from mobile video for entertainment purposes could grow to over $6 billion per year by 2011.
* In the In-Stat mobile multimedia consumer survey, 44% of respondents who own music-playing handsets have not added any music files to their phones.

Recent In-Stat research, In-Sights: Will Multimedia Phones Threaten Portable Music Players? (#IN0603269MCM), covers the worldwide market for mobile multimedia consumer services. It includes results of In-Stat’s survey of over 1,000 US wireless users conducted to determine their interest toward four types of mobile multimedia: streaming video (similar to cable TV), downloaded video clips, streaming music (similar to digital radio) and downloaded music files. It also provides comprehensive demographic and wireless usage habits of consumers that are most likely to adopt each of these multimedia types. Also included are global forecasts of video and music files delivered over cellular networks.

This research is part of In-Stat’s Mobile Consumer Service, which integrates primary end-user research, strategic industry analysis, technology assessment, and applied econometrics to provide a unique 360-degree view of the US consumer market for mobile wireless services. It examines the US market for wireless data and multimedia applications, including SMS, MMS, mobile gaming, location-based services, downloadable content, mobile video and music, and wireless Internet services. It also provides a complete market view by combining analysis of technology trends and consumer behavior, including tracking and forecasting of wireless data spending by segment.

For more information on this research, please visit: or contact Tina Sheltra at 480-609-4531 or The price is $3,495 (US).

In a related report, In-Stat also gauged the interest in using a mobile phone’s MP3 player instead of purchasing an iPod or other portable music player. The report, “In-Sight: Will Multimedia Phones Threaten Portable Music Players?” (#IN0603269MCM) finds that nearly one-third of survey respondents would consider using an MP3-compatible phone as their primary music-playing device.

To purchase this research, or for more information, please contact Tina Sheltra at 480-609-4531; The price is $1,495 U.S. Dollars.


* Title: In-Sights: Will Multimedia Phones Threaten Portable Music Players?
* Service: Portable & Emerging Consumer Products
* Product Number: IN0603269MCM
* Publication Date: August 2006
* Number of Pages: 4
* Price: $1,495 U.S. Dollars
* Abstract, Table of Contents, Figures & Tables
* Members Only Access: Full text HTML , PDF

Market Research from In-Stat

In-Stat offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic market places and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.


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