The Register has an article on a panel at MusicAlly's digital music convention that paints a gloomy picture for mobile music.

"The ringtone business is also showing signs of cooling off - with UMG saying revenues were down 20 per cent year on year. However, ringback tones - which is the song you hear when the call recipient is away or busy - have been a bonanza in Asia, but have yet to catch on in Europe - that's potentially a $2bn a year business waiting to happen (ringtone revenues dwarf the amounts raised by online download stores such as Apple and Napster: they grossed $6.6bn last year."

A "cold wave of realism is blowing through the operators," says the article. One operator is allegedly experiencing flat sales and plans to increase prices. Another reported that saturated promotion actually hurt one artist's sales -- thus big money promotions are a thing of the past.

MusicStation's Rob Lewis, though, see great potential in mobile music. MusicStation, which will roll out with 30 European carriers, will offer "celestial music" for £1.99 a month. "Simplicity is what can beat an iPod," said Lewis.

Extra credit reading:

• Coolfer on MusicStation
• Forrester's Mark Mulligan thinks record execs may not see a bright future in mobile
• 2006 mobile download statistics for Japan