'Mobile music to be bigger than TV'

The mobile music market is set to be big - bigger than video or TV even, according to one analyst.

While the popularity of MP3 players such as iPods hasn't hurt, it's mobile phones that are the key to bringing tunes into everyone's coat pocket.

Analysts Frost and Sullivan estimate revenues in the ringtone market alone will reach €3bn by 2011, while the overall market will hit €7.85bn in five years' time.

The growth will be helped by the development of GPRS and 3G networks across Europe, as well as by co-operation of the music industry, which trusts the close cellular networks with its intellectual property more than the wide-open internet, the analyst said in a recent report.

In addition, falling data-transfer costs and the availability of advanced handsets will make mobile music more attractive.

Older users will also be looked to as a way of expanding the market. While the average age of the mobile music user is currently quite young - as low as 11- to 15-years-old for first-timers - operators and record labels are figuring out how to appeal to adults with new offerings and types of music.

The challenges for mobile operators include overcoming the inevitable "cannibalisation" of music products and building a trusted relationship with consumers that rivals the biggest retail brands.

The report said: "While mobile operators are confident of driving sales efficiently and more effectively than retails giants such as Tesco and Apple, this will take some convincing and is likely to happen over a period of time."