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Mobile Operators Could Stop Motorola-iTunes Deal, Experts Warn
by , 2:00 AM EDT, July 29th, 2004
Cellular operators could deal a severe blow to Tuesday's announced plan between Apple and Motorola to let consumers put songs bought on the iTunes Music Store onto future Motorola, MP3-ready phones if it doesn't get part of the revenue stream from the sale of music cuts, industry experts and analyst are speculating.
Jupiter Research analyst Ian Fogg and John Strand, CEO of mobile research firm Strand Consult, told London-based NewMediaAge magazine they believe cellular operators will refuse to stock and sell Motorola handsets featuring the ability to play MP3 files if they aren't included in the financial rewards, thereby putting a halt to similiar deals with other music providers and cellular phone companies.
"The deal implies that fixed broadband connections are a better way to deliver high quality music downloads than mobile networks," said Mr. Fogg. "It suggests that operators hoping to profit from music downloads will be bypassed by PC transfer services like this."
"It's a mistake to bypass the mobile value chain where content owners are making money and mobile operators (are) missing out," Mr. Strand commented.
Observer Comments
Thu Jul 29, 2004 3:56 am Subject: Are these people out of their minds?
Edit: Okay, the cellular operators did NOT say this, it was just some idiot analyst.
Would the cellular operators ask for money for a transaction they had nothing to do with, just because theoretically, you could download an MP3 over your phone? That's criminal restraint of trade. And what would it cost to download 65 MB (an album) over a cell? Last time I checked, they couldn't even hit 56K with any reliability.
Does a viable product for downloading music over the net even exist? At least Microsoft waits until they have something to sell before illegally sabotaging the competition!
[/b]
Thu Jul 29, 2004 4:12 am Subject: What??
""It's a mistake to bypass the mobile value chain where content owners are making money and mobile operators (are) missing out,"
NO, actuallly that sounds like a PLAN to me. What "value chain?" Mobile providers don't provide and VALUE on content. Personally, I think having the ability to go to a source OTHER than my mobile provider for content is ANYTHING but a mistake.
I had not even considered, when I read the announcement of the MOT-AAPL agreement that anybody would ever consider downloading through the mobile phone … in which case I fail to see how the cell phone provider has anything to do with what’s on the phone. Are they going to want a share of the profits of all the companies listed in my address book also ?
If downloading is involved, the point has been made by someone above: the connection time involved seems to me a sufficient financial incentive for them to wholeheartedly support these new phones …
Are you sure the “analyst†(or whatever he calls himself) is not really Rob Enderle in disguise ?
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