Consumers across the globe will spend $6.3 billion on digital music in 2011, up from $5.9 billion a year ago, according to a forecast issued last month by research firm Gartner. Download services like Apple's (NASDAQ:AAPL) iTunes drive the majority of digital music sales, generating $3.6 billion in 2011 end-user spending; despite the hype, streaming music services currently account for only about $532 million a year, although Gartner anticipates streaming revenues will increase to $2.2 billion a year by 2015. That means personalization services like ringtones and ringbacks will make up the remaining $2.2 billion in digital music spending this year--and even as late as 2015, they'll still add $1.4 billion a year to the sector's coffers.
That's the state of mobile media in 2011: For every consumer downloading the latest and greatest app to their iPhone or Android smartphone, there's another purchasing a Selena Gomez ringtone for their feature phone. But as the mobile experience continues to evolve, a growing number of consumers are evolving with it. Smartphone ownership in the U.S. market reached 90 million in October 2011, up 10 percent from the preceding three-month period, according to data published earlier this month by digital research firm comScore. No less significant, U.S. adults now devote an average of 65 minutes per day to mobile devices, up from 50 minutes a day in 2010 and 32 minutes a day in 2008, eMarketer reports. A year ago, time spent on mobile tied with time dedicated to newspapers and magazines (30 minutes and 20 minutes per day, respectively) but in 2011, Americans spend just 26 minutes a day on newspapers and 18 minutes on magazines.
Why are so many consumers replacing so many conventional entertainment and information sources with mobile alternatives? In this special year-in-review issue, FierceMobileContent looks back at the signature headlines and trends that shaped the mobile media sector in 2011 and set the stage for the innovations to follow. Please note that we are on publishing hiatus until Tuesday, Jan. 3--be sure to visit our website in the event of breaking news between now and then. In the meantime, have a memorable and safe holiday season, and we'll see you back here in 2012.--Jason
