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Radio on Cell Phones Has Its Own Problems

The story linked below explains why radio on cell phones might have a harder time getting traction than you'd expect. The problem's not with the technical issue of sending music, but with the economics of who's going to get paid.

With all the talk about cell phone companies making the move (most recently the Motorola iRadio mentioned here last month), you'd think it was a shoo-in. It's not.

Youth have interest because the act of getting music on cell phones shows a technical savvy that's impressive to friends - until you get down to how much it could cost. Rates haven't been announced because it's not clear how the money is going to be divided. What portion goes to the music? What portion goes to the cell phone carrier (Verizon, Cingular, etc.)? Currently nobody's talking.

While music on cell phones is a reality, it's still like satellite radio and internet radio in that all are an unproven machine that has no business model turning a profit.

Anyone remember the promise Motorola made about its Iridium satellite phones a few years ago? After launching eighteen satellites to deliver the signal, the company sold the venture to Infosat Communications, Inc. at a huge loss due to lack of public interest.

Keep the cost of music for cell phone radio too high and we could have the same results.

Related Article:
NewsFactor

Posted: 11:17 3/29/2005


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