US Consumer Satisfaction with Mobile Music Skyrockets

* Reuters is not responsible for the content in this press release.

Tue Mar 24, 2009 8:01am EDT

KPMG LLP survey also finds that mobile music shows potential as advertising
supported service

NEW YORK, March 24 /PRNewswire/ -- More than three-fourths of US consumers
surveyed are pleased with their experience downloading and listening to songs
on their mobile phone, and almost a third are willing to accept advertising on
their mobile phones in exchange for free music downloads, according to results
of a KPMG Survey announced today by KPMG LLP and the Mobile Entertainment
Forum (MEF).

These results were among the findings of KPMG's third annual Global Consumers
and Convergence survey of more than 4,000 people in 19 countries worldwide to
understand trends in the use of mobile technology.

According to the study by the audit, tax and advisory firm, 21 percent of the
U.S. respondents, and 30 percent globally, have purchased songs at least once
on their mobile phones in the past 12 months. An overwhelming majority of the
US (84 percent) and global (66 percent) purchasers said they were satisfied
with the downloading and listening experience. A similar US survey conducted
by MEF in 2007 found that only 26 percent were satisfied.

KPMG's study also identified a promising new finding for mobile advertisers,
where 29 percent of the mobile phone users surveyed in the US said they were
willing to see advertising in return for free songs. And globally, 49 percent
of consumers will accept ads on their mobile phones in return for songs.

"With the significant rise in mobile music customer satisfaction rates, we may
be seeing a new window of opportunity that advertisers have been seeking for
so long," said Carl Geppert, partner and U.S. Industry Sector Leader in KPMG's
Communications & Media Practice.  "We are seeing sizeable segments of the
mobile marketplace that are willing to pay to download songs or accept
advertising in return for free songs, and carriers as well as advertisers may
need to examine their business models to accommodate those new growth
opportunities."

Consumers also say they are more satisfied with their experience downloading
and viewing video clips on their mobile phones.  About 11 percent of the
consumers canvassed said that they have watched video clips on their mobile
phone in the past year, while 38 percent of users globally have watched video
clips during the same time.  In both the U.S. and globally, more than half of
those who watched mobile video clips were pleased with the experience.  In the
2007 MEF survey, only 28 percent of the US respondents said they were
satisfied with the mobile video clips service.

"The results of the survey show a rapid and rising awareness by consumers of
the types of mobile content available to them and the different ways they can
access and acquire that content. The higher levels of consumer adoption and
the greater usability of the services on offer have directly contributed to
increasing the global mobile entertainment industry from $25 billion last year
to a predicted $32 billion this year," said Jim Beddows, Chair of MEF
Americas. "The MEF Mobile Video Initiative will help the industry further
capitalize on the clear consumer willingness to engage with the services --
whether it is paid for content or ad supported."

KPMG and the MEF also will be sharing the findings of the KPMG survey with
attendees in booth 1400Q in the M-Tertainment Pavilion at International CTIA
Wireless 2009(R), April 1 - 3 at the Las Vegas Convention Center.

Among additional mobile music findings in KPMG's survey, the four items most
often identified as influencing the purchase of songs are, in order of
priority:

    --  in the US, privacy of personal information, clear pricing information,
        the cost of the service and the download speed.



    --  globally, clear pricing information, the cost of the service, the
        ability to save music on the mobile phone and high-quality customer
        care.



Today's announcement of the convergence and consumer survey results is the
latest in a series of collaborations between KPMG and MEF on trends in mobile
entertainment. Last month, the two organizations announced the creation of the
quarterly MEF Business Confidence Index, the results of a survey gauging the
confidence of the $32 billion mobile entertainment industry. The first MEF BCI
revealed that MEF members predict an average increase in revenue of 27 percent
in the next year, in spite of the economic downturn.

More information on KPMG's 2008 Consumers and Convergence study will be
presented during a webcast in late April.

About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.us.kpmg.com), is the U.S.
member firm of KPMG International. KPMG International's member firms have
137,000 professionals, including more than 7,600 partners, in 144 countries.

About Mobile Entertainment Forum (MEF)

The Mobile Entertainment Forum was formed in 2000 to represent companies
throughout the entire mobile entertainment value chain. As the global trade
association of the mobile media industry, MEF works on behalf of its diverse
membership to drive mobile entertainment adoption, shape regulation and
deliver competitive advantage to its members.

With global headquarters in London, a Hollywood-based Americas secretariat, an
Asian chapter in Hong Kong and the newly expanded EMEA branch, MEF's network
of members represents a veritable 'Who's Who' of mobile entertainment
businesses and entrepreneurs. For more information and a full list of members
please visit: www.m-e-f.org.


    Contact:   Mike Alva                    Mike Kelly
               KPMG LLP                     MEF
               Tel: (415) 963-5426          831-440-2403
               malva@kpmg.com               michael@nadelphelan.com

SOURCE  KPMG LLP

Mike Alva, KPMG LLP, +1-415-963-5426, malva@kpmg.com; or Mike Kelly, MEF,
+1-831-440-2403, michael@nadelphelan.com
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