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Music On Mobile Devices Will Be Ad Supported

10-5-2012

Pandora CEO Joe Kennedy has consistently pointed out that the bulk of revenue for Pandora is generated by advertisers, not subscriptions. That trend should continue according to a report from eMarketer. In 2012, 69 percent of mobile music revenue came from advertising, 17.2 percent from subscriptions. eMarketer says by 2016, 86 percent of mobile music revenue will be generated by advertising. Mobile music revenue, including revenues generated from downloads or streams direct to mobile devices, will total $429.3 million this year. By 2016, they will reach $1.68 billion.

Even with hundreds of millions in revenue, music revenue on mobile is still small compared to video and games. eMarketer says revenue from mobile games will hit $1.08 billion this year and mobile video will generate $1 billion.

Read the entire eMarketer piece HERE



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