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Mobile Music More Popular When Bundled with Data, Says Strategy Analytics

How does bundling content with data work out for Mobile Operators? Knowing how content works in increasing their subscription numbers and overall data consumption is critical for Mobile Operators in designing not only their bundling strategies, but also in determining the direction in which Mobile Operators need to move for their suite of digital services. Digital services which covers mobile video and audio services, digital advertising, cloud services, social media applications and information services is very much the frontier that most Operators are focusing on as they invest in their high speed data networks and look for new avenues to increase revenues in the face of data commoditization and the increasing homogeneity of the pure data packages.

Source: Strategy Analytics

Strategy Analytics recent report "Listening to the Listeners: Mobile Music Survey Results" presented a very interesting insight into how content bundling might work for Mobile Operators. According to the report, mobile phone users with access to music bundled into their phone tariffs listen to music on their phones more actively than users without music bundles. The data shows that Mobile Operators are able to influence the content choices of their subscribers by bundling the content with the data packages.

The report which was based on a study conducted across the US, China, France, Germany, Spain and the UK revealed that 72% of mobile phone owners listen to music on their phone actively, or at least once a week, when music is bundled into their tariff compared to 46% for users without music bundled mobile plans.  Currently 77% of consumers claim to listen to music on their phone with over two thirds (70%) claiming to do so at least once per week or more. Notably, a significant proportion of older age groups also listen to music on their phone, with 52% of consumers 55 years old and above listening to music on their phone, and almost 60% doing so once per week or more. The report also highlighted that side-loading music from a personal computer remains the most popular method for getting music onto handsets, despite increased 4G network speeds and the growing pervasiveness of WiFi. Almost 62% of consumers use this method to transfer music to their phone. Side-loading was followed by streaming music via an application and then streaming from the web. Strategy Analytics' report can be found here.

"Mobile operators and handset manufacturers have a significant role to play in enabling the music industry to grow revenue through access to music that is bundled into customers' phone tariffs, or into the price of the phone. Fast growing streaming digital music services such as Spotify, Deezer and Rhapsody have all benefited from bundling their music services into mobile tariffs, while operators can differentiate tariffs from competitors and improve customer loyalty. Furthermore, 29% of surveyed consumers identified their mobile phone brand in the top three preferred music service providers compared to 23% identifying their mobile operator."

- Nitesh Patel, Director of Wireless Media Strategies, Strategy Analytics

"The survey results underline the extent to which mobile phones are substituting dedicated portable music playing devices as the preferred device for listening to music while on the move. Key players in the music industry cannot afford to neglect this trend, particularly among older age segments which clearly see the value of converging music access and communications into the mobile form factor."

- David MacQueen, Executive Director of Apps & Media, Strategy Analytics

 
 
 
Author

Executive Editor and Telecoms Strategist at The Fast Mode | 5G | IoT/M2M | Telecom Strategy | Mobile Service Innovations 

Tara Neal heads the strategy & editorial unit at The Fast Mode, focusing on latest technologies such as gigabit broadband, 5G, cloud-native networking, edge computing, virtualization, software-defined networking and network automation as well as broader telco segments such as IoT/M2M, CX, OTT services and network security. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States. Tara has over 22 years of experience in technology and business strategy, and has earlier served as project director for technology and economic development projects in various management consulting firms.

Follow Tara Neal on Twitter @taraneal11, LinkedIn @taraneal11, Facebook or email her at tara.neal@thefastmode.com.

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