Mobile subscription services not yet phoning it in

By Antony Bruno

DENVER (Billboard) - Mobile phones were meant to revolutionize the subscription music business. But if that revolution were to be televised today, it would consist of nothing but dead air.

U.S. operators are still focused on selling individual tracks over the air on an a la carte basis only.

Take the October 22 unveiling of AT&T's Napster Mobile-branded full-song, over-the-air download service. Although Napster is first and foremost a subscription music service, its wireless extension is not. Users can buy individual tracks for $2 or a five-track pack for $7.50.

When AT&T unveiled its mobile music strategy in 2006, the stated goal was to extend a PC-based all-you-can-eat subscription music service like Napster to the mobile phone and integrate the monthly access fee into the subscriber's phone bill.

The music industry and subscription music service providers agree that this scenario is the holy grail needed to deliver on the as-yet-unfulfilled promise of mobile music. And to be fair, AT&T and other U.S. wireless operators intend to get there soon. There's just a lot of work to be done before making it a reality.

"We really like the unlimited subscription idea," AT&T executive director of premium content Rob Hyatt said, but "it's certainly not without its challenges."

These include technology, pricing and education.

From a technology standpoint, today's wireless networks can handle the download traffic, but according to Napster president Brad Duea, mobile phones still require new software that manages the month-to-month subscription account renewal. They're available now in Japan through Napster's deal with operator NTT DoCoMo, and will be coming to the States in the months ahead.