According to the report, the market for subscription-based music rental services will reach $3.3 billion by 2012, eclipsing the market for paid-for original recordings.
According to report author Dr Windsor Holden, “Music rental services such as those offered by Omnifone are incredibly ‘sticky’, in that once consumers have taken the time and effort to build up an extensive playlist, they will be increasingly reluctant to unsubscribe from that service and from the operator, thereby providing a significant boost to ARPU levels.”
However, the report also states that as 3G services are rolled out in emerging markets, then full-track download sales will mushroom, with the volume of downloads in the Indian sub-continent alone rising from less than 2 million in 2007 to nearly 480 million in 2012.