Mobile phones: Music to the ears

INTRO: Chinese consumers are now the world’s most avid users of mobile music according to a global TNS Global Technology study.

The trend is largely being driven by young Chinese students aged 16 to 21, who spend some 14 hours each week listening to music on their mobile phones.

The study is based on the findings of a 29 country study of 16,000 mobile phone users, the use of MP3 players on mobile phones rose by 78% and the use of radio by a massive 140% in 2007.

According to the survey, Chinese mobile music listeners prefer to listen at home (49%), in cars (32%) and while travelling on public transport (30%).

A strong 31% of Chinese transfer tunes from a PC or laptop, compared to 22% who download to phones from mobile services.

The study also found that in China, 23% of respondents who have access to FM/AM radio on their phones use the feature - slightly higher than the global average of 22%.

Shawn Wang, director for TNS China Technology says inside the home, mobile phones in China are either substituting or making up for the lack of other audio entertainment devices.

Outside the home, however he says they eliminate the need to have multiple devices like iPods nad MP3 players.

The survey also shows that mobile phones is helping to sustain the radio sector in China, which has taken a battering at the hands of TV music channels and the internet.

But the challenge for mobile operators is how to generate revenue from this application and encourage use of other features, says Shawn Wang, director of TNS China Technology.

"Enhanced real-time data services such as location-specific information may be a better bet when it comes to increasing consumer spend," he says.

However, the report advises caution to the music industry keen to cash in on the popularity of mobile music in China. The data shows 31% of Chinese users now ‘sideload’ music (transferring from a PC or laptop) compared to just 22 per cent who download directly. Many consumers already have their music libraries in a digital format, and often put off downloading directly to their mobile as they perceive the prices to be too high.

The use of phones as music players gives device manufacturers opportunities to increase consumer involvement with their products, but for network operators and music rights owners, incremental revenue growth through downloading may be limited.

The survey was conducted through 16,000 interviews with respondents aged 16 to 60 years, including users, prospects and rejecters of mobile phones across 30 markets throughout Asia, Europe, Middle East and Africa, Latin America, and North America, in November 2007. In China, 800 face-to-face interviews were held in Shanghai, Beijing, Guangzhou, Chengdu, Wuhan, Shenyang, Nanjing, Baoding, Weifang, and Lanzhou .

Mega trends

• Supply is outstripping demand in mobile internet services

• Wireless technology set to leapfrog wired

• The PC and mobile phone are set for collision

Major purchase behaviours

• Top-end and premium devices are set to boom

• Nokia’s global market share is set to increase further

• Distress purchases are still the primary trigger for buying a new phone

• Effective channel strategies are hampered by regional differences at source of purchase