David Berlind offers insightful comments on Motorola's music-related efforts. Snippets:
So, let's add this up. Mobile operators are interested in getting music to their service subscribers but the business has to make sense from a revenue point of view. That means that Apple, which still sells music for 99 cents per song will have to divvy up the profits from that revenue with the mobile operator for each song purchased with an iTunes phone. Whether or not there's enough money after the pot gets divided is a question mark that doesn't help to justify an idea that may already require someone — the operator, Apple, or both — to eat the chicken & egg cost of launching by way of subsidization. As more music stores come online, some with offers that are more attractive to consumers than Apple's 99 cent deal, Apple may have to drop the price to maintain iTune's market viability. If Apple is forced to cut the price of music, the subsidization costs are at risk of going up before going down. It's no secret that the margins in the online music business are already razor thin.