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Mobile Audio Accessory Market Has a Nice Ring to It
Posted: 05-Apr-2004 [Source: Yankee Group]

[Audio accessories and ringtones expected to continue to emerge as growing mobile markets reports Yankee Group.]

Boston -- According to the recent Yankee Group report, Two Markets Emerge for Mobile Music, the U.S. audio accessory market is currently $80 million, and has the capability to reach $1 billion per year (similar to other major geographic regions). However, true wireless music will not hit the mainstream for a few years.

The Yankee Group has upgraded its 2003 United States ringtone market estimate to $80 million (from $50 million). Customers show sustained willingness to pay premiums for the right tune. By 2008, the U.S. audio accessory market, including ringtones, ring tunes and calling tones, will be worth $1 billion. Today's global market is more than $2.5 billion.

"As ringtones are the first globally successful mobile micropayment application, and true mobile music promises to be one of the first mobile macropayment applications, the music industry will have a profound impact on the shape of the wireless industry," says Adam Zawel, Yankee Group Wireless/Mobile Applications & Commerce director. "Specifically, record companies will drive the wireless industry to support a DRM framework--one that protects content within the closed environs of the wireless networks, and as it flows over local area connections to devices not connected to the carriers' network."

Audio capabilities will improve gradually and will play a greater role as an enhancement to games and multimedia on phones and PDAs; however, the pure audio experience of listening to music must wait for the development of four trends: home network growth, WAN improvements, device convergence and the resolution of wireless DRM.

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