BigShinyThing

But only about one quarter of homes have broadband, according to recent research, and this is impeding the growth of digital media in the States. Ironically, digital audio, previously the music industry’s bete noir, may yet save it. Paid-for music downloads are expected to substantially contribute to music labels’ topline this year. This could herald the first growth seen in the sector for five years.

The video game market continues to thrive, aided by the release of next generation consoles with enhanced online capabilities. But it is digital video recorders that are expected to make the biggest mark on the industry in coming years, threatening traditional advertising and broadcast models. Techology Review has the full story and stats.

Meanwhile, the BBC reports on more tech convergence between mobile phones and the internet. T-Mobile is to offer subscribers full internet access via Google whilst Vodafone has linked with Microsoft to allow users to exchange instant messages between its messaging service and MSN Messenger. In the past, mobile operators such as T-Mobile have limited customers to its T-Zones ‘walled garden’, a restricted online service that encompassed mainly news, sports etc. It took a while for them to realise that this approach was, according to a T-Mobile spokesperson, too expensive, too complicated and of too little use. Particularly when Google could do a much better job on their behalf.

T-Mobile subscribers in Europe will now be directed to the Google homepage, from where they can go anywhere on the net. Sadly, the changes will only be available to users of newer, high end phones. People with older handsets will have to make do with T-Zones as their phones are not able to display web pages.

Meanwhile, Vodafone is seeking to exploit the popularity of instant messaging (IM). Its deal with Microsoft’s MSN Messenger service will bring together the more than 165 million MSN Messenger users with nearly 155 million global Vodafone customers. Users will be charged to IM from a mobile to a PC and vice versa, the logic being that they already pay for text messaging. Vodafone and Microsoft aim to launch the messaging service in several European countries before the end of the year.