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Study: Cell Phone Audio A Growth Market
April 4, 2007

Arbitron and research provider Telephia have released a new study on audio options for mobile phone users, finding that the market is a major growth opportunity. Among the findings of the study, six percent of mobile phone subscribers used one or more audio features in the last 30 days. Out of the different options, downloading songs over-the-air has the largest awareness, followed by subscription-based streaming radio and FM radio reception on cell phones.

Also, the majority of current mobile audio users believe that commercials "are a fair price to pay" for free content on their phones. Over 75 percent of those surveyed who download content to their phones and listen to FM radio agreed they would be open to commercials.

The study also found that 63 percent of mobile audio users are male, with persons 25-44 making up 71 percent of current mobile audio users. The most common music format for mobile audio users is Pop.

However, the study notes that bringing in new customers currently could be a challenge, as two-thirds of "non-current" mobile audio users are uninterested in any audio options for their phones.

"There is an opportunity for wireless providers, programmers and marketers to develop an advertising model for mobile audio," said Wayman Leung, senior product manager for Telephia. "Most current mobile audio users prefer the ad-supported model over paying a subscription fee. And this group is a very attractive demographic for advertisers to target as it’s comprised mainly of affluent, tech-savvy early adopters."

"For broadcasters looking to expand their platforms beyond terrestrial radio, mobile audio represents an untapped marketplace that they can exploit in partnership with mobile phone networks,” said Neal Bonner, Arbitron product development manager. "Radio broadcasters are uniquely positioned to deliver programming for these promising new audio services."




 
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