Mobile carriers are looking at music as an important piece of their strategy to increase data revenues. However, as the chart below shows, price is the major obstacle to more data usage.
This is tied directly to OTA downloading of music to cellphones - most people don't and I believe that cost is a major factor.
The music strategy of carriers is tied to OTA downloading. They can make money from music only on the data charges. Unless data charges come way down, people won't download OTA.
Of course as data charges come down usage will have to go way up to meet revenue projections.
Free ad-supported music downloads DRM'd to a phone offers carriers a way to make money from music even when tracks are sideloaded.
Carriers need to understand that the most money is made from content and applications at the handset not by delivery to the handset.
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