As I mentioned in my post discussing where consumers get content from, I said: "Don't ignore the P2P elephant: 48% sideloading music from you-know-where is not something one can ignore and pretend its going to go away. I don't even think legislation can make P2P go away but some think so. No, I think we're looking at a vanishing consumer wallet and people will not pay (much, if anything) for music. We need to figure out alternative revenue channels for the operator, content owner, retailer etc."
A new survey shows that 61% of US teens download music illegally. Not a big surprise, frankly. Ask any teen around you whether they pay for music... the answer is no.
The survey noted an overall "discretionary recession" in teen spending, finding a 15% year-over-year decline in spending among young men, and an 11% decline among young women.
This is the dynamics that will make operators focus on networks as the revenues from mobile content require skills, and budget, that brands, advertisers and content owners have, not necessarily operators.
Another interesting comment was: "Six percent of students indicated they own an iPhone -- double the market share found in a fall 2007 survey -- and 9% expect to buy an iPhone in the next six months."
The iPhone UI really does make a difference to the teens. I believe iPhone and the likes will bring teens to use their phones as their music device. This is a huge opportunity for the direct to consumer content business.