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To Compete, Online Music Services Must Provide Payment Method Options
Yankee Group, The, Oct 2004, Pages: 12
The market for paid online music downloads has taken off since Apple launched the iTunes Music Store in April 2003. There are now more than a dozen companies offering music downloads for sale in the United States.
The online music marketplace has become increasingly crowded in recent months as more and more companies try to grab a piece of this growing market. Offering support for a number of payment methods is helping some services differentiate themselves, reach a broader audience, build a brand, sign up new customers and encourage continued use of the service.
There are significant differences in the approaches to payments, ranging from simply accepting credit cards to supporting a wide variety of payment methods.
This report examines the payment methods used by online music services. We focus on methods to reduce transaction processing costs and the benefits of offering alternatives to accepting only credit cards.
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