Mobile music services - either in the form of downloadable music files or broadcast digital radio - have greater interest among U.S. mobile customers than gaming, an application that is now providing some of the greatest mobile data revenue, reports In-Stat. However, the ecosystem that will permit widespread uptake of music applications is not yet mature, and shows signs of being put on hold until key issues, such as pricing, revenue sharing and Digital Rights Management (DRM), can be worked out, the high-tech market research firm said.

"The window to catch a group of wireless users we call 'Mobile Music Intenders' - those interested in mobile music services - may be closing soon," said David Chamberlain, In-Stat analyst. "They're ready to buy new handsets and they're willing to pay extra for handsets that play music. Without available music services or handsets, carriers may miss this opportunity to grab what could end up being a very lucrative mobile music market."

A recent report by In-Stat found the following:

- Music Intenders are willing to pay extra for their mobile phones. More than one-fourth spent more than $150 for their current handset; more than two-thirds expect to buy new phones before the end of 2005.

- Overall, 34% of wireless subscribers surveyed are "somewhat," "very" or "extremely" interested in mobile music services.

- Survey respondents who could be classified as "MP3 Intenders" have a distinct demographic profile when compared with the general population. They are younger, male, prefer Sprint PCS and T-Mobile, and spend more on their handsets.

The report covers the U.S. mobile wireless market. It includes end-user research based on the recent Consumer Mobility Study (CMS) conducted by In-Stat. It includes forecasts and analysis of mobile data services with a focus on mobile music services.