Mobile music to strike a rich note

The mobile music industry is set to take off over the next three years, one analyst predicts.

Gartner expects the total revenue from mobile music services - from basic ringtones to full track downloads and streaming - to rise significantly in the next three years, from $13.7bn in 2007 to $32.2bn in 2010.

The two factors behind the uptick are the desire for personalisation and for entertainment, with phones increasingly taking the place of dedicated MP3 players.

Some believe mobile phones will bring about the death of the MP3 player as music-enabled mobiles outnumber dedicated devices in the coming years.

The recently announced Apple iPhone and Microsoft's Zune MP3 player - both of which allow consumers to purchase music at the companies' song shops - will compete with mobile operators' content offerings and force mobile phone operators to develop their strategies and address technical issues such as digital rights management and network coverage, according to Gartner.

The Asia Pacific region - already the leader in terms of mobile handset sales - is expected to continue to lead the way in mobile music spending.

Western Europe is second in terms of mobile music consumption, followed by North America.