Music Fans Dodge Fees With Handset 'Sideloads'

Apple has sold 4 million iPhones since last summer’s launch, and it’s become the industry leader in mobile web access, while having just 1% of the handset market, reports Reuters. But the sleek smartphone hasn’t appeared to have made a bump in music downloads. Overall, downloads to handsets have been a disappointment to the music industry.

Users, instead, are sideloading from their computers or other devices, said M-Metrics in a new study. And much of that music is streamed between computer users, with no cash going to music companies, worrying execs that the era of purchased downloads could be coming to an end. Already, European mobile users listen more often to shared than to purchased music. (More iPhone stories.)