Digital Music

BY CHRONICLE STAFF

The Latin American digital market is still in its

infancy, limited by low broadband

penetration, resistance to online credit card

use and high levels of piracy. However, several

markets are showing promising progress.

Broadband and mobile penetration is rising

fast in Brazil, Argentina and Mexico and

marketing of legal online services has

intensified alongside a campaign for

combating digital piracy.

In Mexico, online downloads topped nine million units up to the third quarter of 2006 – 15 times the volume registered during the same period in 2005. In spite of this growth, digital sales remain concentrated in mastertones and pre-loaded music to mobiles – growing revenue streams for record companies in the absence of fast 3G networks or high penetration of MP3 capable phones.

In Brazil, two major legal sites were launched in mid-2006 (Terra and UOL) adding on to the more established iMusica. There are now 20 websites offering legal downloads in the country. More than 90 per cent of all digital sales are made as mobile downloads, the majority of them mastertones.

Argentina is also showing a steady growth in digital sales, which quadrupled in the year to July 2006. Some 80 per cent of all digital sales are currently made as mobile downloads. Online music service providers include 10musica, Zapmusic, Farolatino and Ubbimusica. The latter two launched last year.

Brazil

Americanas.com

Antena 1

Brazil Telecom

BrTurbo

iMusica

MSN Music

Oi

Som Livre

Sonora*

Submarino

UOL Megastore*

Yahoo! Music

Mexico

Beon

Tarabu