June 22, 2010 11:11 ET

Is There a Commercial Argument for ISP Music Services?

ROCKVILLE, MD--(Marketwire - June 22, 2010) - has announced the addition of Ovum Plc 's new report "Is there a commercial argument for ISP music services?," to their collection of Music market reports. For more information, visit

ISPs are missing out on a share in the revenues earned by digital content providers, which are delivering everything from music to video and e-books over the top (OTT) of the Internet access provided by ISP networks. With the commoditization of broadband access, value-added services (VASs) - including music services - have become a key potential contributor to ISPs' revenue growth. With ISPs' need for VASs in mind, Universal Music commissioned Ovum to produce the following white paper that attempts to answer the question "is there a commercial argument for ISP music services?

Topics covered in the report include...

  • Key messages
  • The case for ISP digital music services
  • Digital music services can also reduce churn
  • A defined execution framework is required
  • ISPs are a new distribution channel for subscription-based music services
  • Challenges facing the ISP industry in the UK
  • Broadband access is a mature market
  • Complex relationships with media owners
  • ISPs hold some strategic high ground
  • ISPs should try to grab a share of digital entertainment revenues
  • The digital music market landscape
  • New consumption choices for the consumer
  • Digital retail: download-to-own
  • Ad-supported and subscription web streaming
  • Illegal file-sharing
  • The future? DRM-free, high-volume MP3 download services
  • Multi-platform music: unified services on the TV, phone, and PC
  • Strategic opportunity and challenges
  • Catalysts for examining digital music
  • Challenges
  • iTunes dominates retail
  • Disruptive application service providers are providing low-cost streaming music services for digital natives
  • ISPs are regionally focused in a business that rewards scale
  • The opportunity
  • The ISP digital music business case
  • A model for the cost base of ISP digital music
  • Assumptions for the commercial model
  • Service adoption assumptions
  • Platform and operational cost assumptions
  • Direct and indirect revenue assumptions
  • Service strategies for ISP digital music services
  • Strategy 1: unlimited streaming with a high-volume download allowance
  • Strategy 2: low-cost unlimited streaming with additional retail
  • The future case for ISP music services
  • DRM-free, high-volume, download-to-own subscription services
  • Commercial model simulation assumes best practice
  • Six best practices for digital music services
  • The potential size of the ISP digital music market in the UK
  • ISP digital music market could top £100 million by 2013
  • Potential value of music services for a tier-1 ISP
  • Reduction in churn
  • Implications for ISP music services
  • Digital music services can generate revenues for ISPs

For more information, visit

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