Monday, September 11, 2006

EMI Sings for Mobile Ads

The reeling music industry is looking for any way to make a buck, the latest of which is supporting music through mobile advertising. EMI signed a deal with T-Mobile and Rhythm NewMedia to deliver an ad-supported music service to phones.

While EMI's deal with Spiral Frog will likely be a short-lived affair, using ads to pay for delivering music videos to mobile phones could pay off for all parties. Music videos are promotions for buying the music, and people who want to see a video on their phones are willing to view an ad for the pleasure. Unlike music downloads there aren't a thousand ways to get a music video on your phone, so watching a brief ad is tolerable.

Advertisements have paid for free music on radio since Marconi, so mobile phones should be no different. But streaming versus downloads is a different set of economics for cost and benefit for music publishers, and they should build their revenue models accordingly.

Found via Adotas.

By John Gartner at 01:04 PM | Comments (0)

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