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OMA, MPEG Usher In New Era of Mobile Subscriptions

Mpegla_1The Open Mobile Alliance has finally arrived at a deal with MPEG-LA for the rights to use the MPEG patents to secure content on mobile phones, according to Reuters. The license fee is now $0.65 per handset (down from $1/handset) and $0.25 per subscriber per year (down from $0.01 per song).

This change enables services to support a wider variety of music plans, especially "all you can eat" plans. Subscribers will flock to the hitmakers like Coldplay and Gwen Stefani, but labels needed this concession in order to build their artist development business.

This change is also an important belwether for IPTV and other content providers. It enables them to be more creative in how they bill the customer. I continue to believe that companies that can simplify the complex business of television programing have a shot at nascent businesses such as helping business customers create new experiences.

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