Monday, May 12, 2008

Music industry hopes upgrades boost mobile sector




By Antony Bruno



AppleiPhoneMP3 player

The majority of this music, however, is transferred from
the computer, rather than purchased through the phone and
downloaded wirelessly. That may change this summer once Apple
unveils what many expect will be a new version of the iconic
device, featuring access to high-speed third-generation (3G)
wireless networks.

The company has not made an official announcement, but
signs point to an early June release. Apple has stopped
restocking retailers with the current iPhone version, which
analysts say is a sure sign that a new model is imminent.
Apple's Worldwide Developers Conference is scheduled for June
9, and CEO Steve Jobs will deliver the keynote address.

Existing iPhone models connect to an older, slower wireless
network but compensate with access to high-speed Wi-Fi Internet
networks. Those using the iPhone to download music from iTunes,
for instance, must use this Wi-Fi connection. While certainly
faster than cellular networks, Wi-Fi does not offer nearly the
same range of coverage.

Apple has sold more than 5 million iPhones worldwide, but
many tech-savvy buyers, particularly in Europe, have been
holding out for a 3G version. Upgrading the iPhone to 3G is
considered crucial if Apple is to meet its stated goal of
selling 10 million iPhones this year.

SMARTPHONES GET SMARTER

Even if Apple manages to reach its goal, the iPhone would
still represent only about 1 percent of all mobile phones
available. For the music industry, as significant as the iPhone
mobile music usage figures are, the greater significance is how
they inspire other device manufacturers to reach for similar
levels. The company with the most to lose from the iPhone's
momentum is Research in Motion, maker of the popular
BlackBerry.

In the United States, RIM leads the smartphone market with
a 40 percent share, but Apple is close behind at 28 percent,
according to research group Canalys. Apple has begun
incorporating support for Microsoft-based corporate e-mail
applications into the iPhone, which is considered a direct
attack on the BlackBerry.

VERIZON'S VISION

But smart phones cover only a small part of the market. In
the United States, there are only about 20 million smart
phones, compared with 250 million mobile phones. What the music
industry wants most is to turn every mobile phone into a
music-playing device.

When MTV Networks merged its Urge music service with
Rhapsody in 2007, Verizon agreed to be the mobile platform for
the service. The vision is that Rhapsody will become the
default music service for Verizon Wireless, but exactly how
that is implemented won't be clear until this summer.

Verizon Wireless and Rhapsody originally planned to launch
the service in spring 2008, but RealNetworks CEO Rob Glaser
says the process is three months behind schedule because
Verizon Wireless wanted to make the service available to the
widest spectrum of phones possible.

Reuters/Billboard





Full Coverage: Year in Review 2007


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at CMT, Dec 26
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at Boston Globe, Dec 26





Feature Articles
2007: The Year's Top Videos 
at ABCNEWS, Dec 31
Faces of the year - the women 
at BBC, Dec 31





Opinion & Editorials
The New York Times: 2007 The Year in Pictures 
at The New York Times, Dec 31
The Top Ten Douche Bags of 2007 
at blogcritics.org, Dec 26











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