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Lightbulb Digital Music Becoming Global Commodity - 05-22-2008, 11:03 PM

Just like the platform it was built on, digital music is officially reaching around the world, specifically, the Middle East. The digital music market there is likely to make waves as new, internationally backed competitors enter the game. Among them, two regional business who have partnered with international media companies. They've announced plans to launch digital media download services, which will be specifically focused on mobile phones.

Mobile phone companies like Etisalat and Egypt’s Orascom Telecom are looking to offering services like music and media downloads as a way to increase the revenue they get from each user. Another company based in the Middle East (but whose parent company, Bertelsmann, is headquartered in Germany), Arvato Middle East Sales (AMES) announced it inked deals with a number of global content providers. These particular agreements will allow AMES to distribute music using an international platform – including Sony BMG - over Middle Eastern mobile phone networks.

The CEO of AMES , Sean Emery, revealed that he hopes to offer customers an ideal digital music and mobile phone experience saying, “People want a media buffet: they want the ability to sample and try out all kinds of music. They would then like to buy and own some of that music forever”. In order to accomplish this, AMES will be incorporating the latest mobile technology into what they offer their customer – providing them with a perfect pairing of content and access.

Mr Emery didn't go into the specifics of the service to be offered by AMES, but did say that details would be announced at the MECOM conference taking place next week in Abu Dhabi.

Up until now, Emery reveals, that relationship has had a hard time evolving in the Middle East because of the reluctance of mobile network operators to enter revenue-sharing agreements with the companies that provide content.

“Operators have traditionally asked to keep 70-80 per cent of content revenue,” Mr Emery said. “The result is consumers get a low amount of poor-quality music, coming only from content owners who can survive on that kind of revenue. If you want quality, top-class content, you need to change that business model.”

In addition to this groundbreaking announcement, another content agreement, centering in the Middle East, was unveiled recently as well. Cellempower is a mobile company owned by the Saudi Arabian mobile phone distributor i2. The company has reached a content distribution agreement with the US-based company, Paramount, to distribute the studio’s original digital media, including film clips, ring tones, wallpapers and movie previews, geared specifically for mobile phones.

Abdul Hameed al Sunaid, the CEO of i2, said that to keep up with changes in the market and the region the company would “implement innovative business models and marketing strategies combined with a full multi-channel distribution infrastructure.”

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