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U.S. Mobile Users Want Music Downloads

As U.S. wireless carriers prepare to launch enhancements to their mobile music offerings, a recent Consumer Mobility Study by In-Stat/MDR (http://www.instat.com) finds that 11.4% of U.S. mobile subscribers are very or extremely interested in moving beyond basic ringtones and purchasing more full-featured music/audioservices for their wireless phones including music and news/talk content available as downloadable content or on demand. The high-tech market research firm believes that, while this mobile multimediacategory is still in its formative stages, wireless subscribers who expressed an interest in mobile music and audio are high-value users with attractive demographic and wireless spendingcharacteristics.

“Mobile music and audio services in the U.S. are beginning to evolve beyond the familiar, tinny sounds of monophonic ringtones,” said Clint Wheelock, director of In-Stat/MDR’s wireless research group. “While most wireless subscribers are familiar with the concept of customizing their ringtones, awareness of more robust mobile music services is low due to the nascent state of carrier deployments. However, as operator deployments ramp up in 2004 and beyond, consumer awareness and interest levels will increase. With mobile data services entering the mainstream, wireless multimedia is one of the next big growth areas for the cellular business.”

In-Stat/MDR’s survey also revealed the following about those who expressed an interest in mobile music and audio:

— The most popular service concept is the ability to download MP3s or other digital music files directly to wireless handsets, followed closely by the ability to listen to streaming music on demand.

— Total monthly wireless spending among likely mobile music adopters is 14% higher than the general subscriber base.

— They are likely to be male, younger, and work in a professional role, and are also more likely than the average wireless subscriber to be African American, Hispanic or Asian American.

— They are most likely to be T-Mobile and Sprint PCS subscribers.

The report, “Consumer Demand for Mobile Music Services” (#IN0401658MCD), is based on In-Stat/MDR’s Consumer Mobility Study and contains an overview of survey respondents’ interest in potential music and audio services for their mobile handsets. The results are analyzed by psychographic segment, choice of wireless carrier, usage of other home technology products, and consumption patterns for music/audio content including compact discs, audio books and radio. The report also provides detailed tables containing demographic, professional, and purchasing behavior profiles of consumers who expressed an interest in purchasing mobile music/audio services and examines wireless consumer interest in six potential mobile music/audio content offerings. For more information on this report, please visit: http://www.instat.com/catalog/Wcatalogue.asp?id=230 or contact Erin McKeighan at emckeighan@reedbusiness.com or 480-609-4551. The report price is $2,295.

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