Industry news

Gartner: Carriers move into online music

US carriers are moving into online music while other markets fluctuate, one analyst has said.

Gartner has revealed an opportunity for carriers is emerging in the music market, which is forecast to earn $1.3 billion (£650 billion) this year.

It said that though the quick boom of digital music will not be great enough to cover legacy losses in voice and data, margins are good and relate to convergent markets.

William Hahn, the firm's principal analyst, said that carriers would be looking to replace some expected lost revenue while trying to increase the appeal and stickiness of the customer relationship.

"Online music has a natural relationship to the delivery of other forms of digital media and entertainment, giving carriers as entrant players the opportunity to build a unified platform from the start, rather than multiple silos for each sector," he added.

Meanwhile, earlier this month the New York district court announced a public decision that some carriers should compensate songwriters and composers for online use of their work.

CNN reported that the payments to the American Society of Composers, Authors and Publishers could reach $100 million (£50 million).