UMG announced that it will offer direct-to-consumer mobile music and services via Qualcomm’s BrandXtend solution. UMG’s mobile offering will be available iva
artist Web and WAP sites, CD packaging and its GetMusic.com
portal. Direct sales means higher profits from ringtones, video ringtones, wallpapers, etc. and provides delivery, campaign management and merchandising tools including recommendations, bundles and text campaigns.
BRIEFLY: I’m not sure why we’re not seeing more direct to consumer sales from labels? Perhaps they’re still afraid of upsetting retail. But direct sales means higher margins, the ability to up-sell and the capture of buyer info that leads to more sales. WHAT DO YOU THINK? Do direct sales help or hurt the music industry?
