Will iPhone change the music industry?

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During this year’s Macworld Steve Jobs announced that Apple has sold more than 4 million iPhones since its launch. Despite owning only 2 percent of the smart-phone market and less than 1 percent of the overall mobile-phone market, iPhone still manages to keep up its reputation as the main shaker.

As the New York Times reports, Google announced that it received more traffic from iPhones this Christmas than from any other mobile device. One of the main reasons why iPhone users have been visiting the web so often could be the fact that software developers are still limited to creating Web-based applications. Will that change when Apple will introduce it’s iPhone SDK in February and native applications will be able to run on it without the user having to hack the device?

Apple has not revealed, however, how many iPhone users have bought music using iPhone’s iTunes interface. As we learn from other sources this has not appeared to be iPhone users’ favourite activity. A recent M:Metrics study, for example, shows that 20 percent of mobile phone users internationally listen to music on their mobile devices. However, most of them gets their music from other sources than a mobile music service like iTunes. They prefer to download their tunes from their computers’ archives or other sources.

Music industry is keeping an eye open on the iPhone. Music labels are concerned with the fact that more and more mobile phone users are sharing music files or obtaining them without using official music services. Their income from the carrier deals may be seriously reduced if more mobile devices become more open-access like iPhone. The executive of one of the labels has put it this way: “As more phones become Wi-Fi-enabled, the need to go through official pipes to pay the piper is not always going to be there.”

Some companies like Alltel for example are already offering services that allow customers to stream and download digital-rights-management-free digital music files from their home computer to their mobile phone from anywhere in the operator’s service area.

Thanks to: Reuters/Billboard

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