Remixing mobile music: What's next for operators?

Digital formats represented a record 47 percent of total U.S. music shipments in 2010, according to Recording Industry Association of America data issued last week--for perspective, consider that digital shipments accounted for only 9 percent of the market just five years earlier. The U.S. digital music market as a whole grew to $3.2 billion in 2010, up 3 percent year-over-year, but no credit goes to mobile music--shipments of ringtones, ringbacks and full-track downloads declined 28 percent to $527 million. While ringtones still make up 49 percent of the U.S. mobile music market, shipments declined a staggering 41 percent last year--ringbacks held consistent year-over-year at 20 percent, with only full-length tracks and music videos on the rise, increasing to 31 percent of the market in 2010 from 19 percent the previous year.

With mobile music at a crossroads, U.S. operators and their partners are weighing exactly how to revive the segment's sagging fortunes. Some are embracing new, cutting-edge solutions, while others are looking to revamp and enhance traditional services to catch up with more advanced devices and evolving subscriber tastes. Some next-generation solutions target smartphones and leverage the cloud--more old-school initiatives cater to feature phones and appeal to prepaid subscribers. All make it clear that mobile music will remain a cornerstone of operators' data services for years to come, even if the shape and form of music services may ultimately differ wildly from what consumers have come to expect in the here and now. Click here for a FierceMobileContent feature that explores the current state of mobile music--and tunes in what's coming next. -Jason