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The Digital Music Market Outlook: Evolving Business Models, Key Players, New Challenges and the Future Outlook Product Image

The Digital Music Market Outlook: Evolving Business Models, Key Players, New Challenges and the Future Outlook

  • ID: 1061114
  • June 2009
  • 132 Pages
  • Scripp Business Insights

FEATURED COMPANIES

  • 7digital
  • Amazon
  • iTunes
  • Napster
  • Rhapsody
  • Wal-Mart
  • MORE

The increasing adoption of broadband and mobile technologies and the widespread adoption of smartphones and portable music playing devices continue to drive the digital music market. The music industry landscape is undergoing major structural changes as companies from other industries become integrated into music distribution, and business models transform to adapt to changing market demands. Piracy remains a major concern in the industry, with losses from ilegal downloads running into billions of dollars.

‘The Digital Music Market Outlook: Evolving business models, key players, new challenges and the future outlook’ is a report published by Business Insights that analyzes the growth of the digital music market and recent transformations to the industry structure and business models. The report examines the growth drivers and inhibitors of the market, emerging geographies, industry challenges and the future market outlook. It also provides detailed profiles of the leading digital music service providers including an examination of their operations, service offerings, financials and strategic outlook.

Key Findings

The global digital music market will READ MORE >

Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • 7digital
  • Amazon
  • iTunes
  • Napster
  • Rhapsody
  • Wal-Mart
  • MORE

Executive summary

Digital music – the new era

Key markets

The value chain and evolving business models

Key challenges

Future outlook

Key players

Chapter 1 Introduction

What is this report about?

Methodology and definitions

Chapter 2 Digital music – a new era

Summary

Global market overview

Market size and growth
Segmentation - online and mobile music components
Digital music more popular among younger consumers

Growth drivers
Increasing penetration of broadband and mobile technologies
Soaring sales of smartphones and portable players
Expanding online catalogues and DRM-free strategy

Key trends
Innovative marketing drives the market forward
Move towards DRM-free tracks
Partnerships emerging across the value chain
Artists reaching out to fans directly
Growing involvement of local governments and ISPs in controlling piracy

Chapter 3 Key markets

Summary

Developed markets
US
Japan
UK
France
Germany

Emerging markets
China
India
Brazil

Chapter 4 The value chain and evolving business models

Summary

The virtual music value chain
Artists
Record labels / production companies
IP rights protection body
Physical retailers
Digital music retailers
Consumers

A-la-carte downloads vs. subscription services

Key emerging business models
Advertising supported services
Artist led distribution channels
Linking with brands, merchandise and mobile games
Music access services by ISPs and mobile operators
Partnerships across the value chain
Flexible pricing

Chapter 5 Key challenges

Summary

Introduction

Piracy – plague of the digital music industry
Depth of the problem
Piracy spans across geographies
Steps to curtail piracy
Role of ISPs and government support
Legal action against P2P networks
Initiatives by record companies

Interoperability issues – finding an effective DRM system

Determining the right price for digital music

Chapter 6 Future outlook

Summary

Strong growth to continue
Developed and emerging markets
The future face of music – music to go
Graduating to full-track downloads and music videos

Evolution of business models
Subscription model is the key to the future
Ad-supported services will become more popular
Labels reaching out to consumers directly
Cashing in on live music
Capitalizing on popularity of social networks
Emergence of new business models
Changes in the pricing mechanisms

Technology innovations and advances
MP3 player market to grow with innovations
Technology enabling music on the go
Convergence of multiple formats, devices and channels
Audio formats and quality

Music piracy
Music piracy most rampant among younger consumers
Collective efforts required to curtail music piracy

Chapter 7 Key players

Summary

Digital music retailers

iTunes Music Store
Overview
Service offerings
Operational and financial performance
Strategy

eMusic
Overview
Service offerings
Operational and financial performance
Strategy

Napster
Overview
Service offerings
Operational and financial performance
Strategy

Rhapsody
Overview
Service offerings
Operational and financial performance
Strategy

Amazon MP3
Overview
Service offerings
Operational and financial performance
Strategy

7digital
Overview
Service offerings
Operational and financial performance
Strategy

Wal-Mart Music Downloads
Overview
Service offerings
Operational and financial performance
Strategy

Appendix
Index

List of Figures
Figure 1.1: Key players in digital music retailing
Figure 2.2: Global digital (online and mobile) music market forecast ($bn), 2005-2013
Figure 2.3: Global digital platforms’ share in overall music market (%), 2004-2008
Figure 2.4: Top ten countries’ split of digital music (%), 2007
Figure 2.5: UK key music-related activities (% respondents)
Figure 2.6: UK respondents in favor of free music
Figure 2.7: Global broadband subscribers and penetration (m, %), 2004-2007
Figure 2.8: Global mobile subscribers and penetration (bn, %), 2004-2008
Figure 2.9: Global iPod sales ($bn and units), 2006-2008
Figure 3.10: US digital music market forecast ($bn), 2005-2013
Figure 3.11: US digital platforms’ share in overall music market (%), 2005-2008
Figure 3.12: US digital music market breakdown ($m), 2005-2008
Figure 3.13: US digital music market breakdown (m), 2005-2008
Figure 3.14: Japanese digital music market forecast ($m), 2005-2013
Figure 3.15: Japanese digital platforms’ share in overall music market (%), 2005-2008
Figure 3.16: Japanese music market share of online and mobile channels (%), 2005-2008
Figure 3.17: Japanese mobile music market breakdown ($m), 2006-2008
Figure 3.18: Japanese mobile music market breakdown (m), 2006-2008
Figure 3.19: Japanese online music market breakdown ($m), 2006-2008
Figure 3.20: Japanese online music market breakdown (m), 2006-2008
Figure 3.21: UK digital music market forecast ($m), 2005-2013
Figure 3.22: UK digital platforms’ share in overall music market (%), 2006-2008
Figure 3.23: UK digital music market breakdown ($m), 2006-2008
Figure 3.24: UK digital music market breakdown (m), 2006-2008
Figure 3.25: Chinese digital music market ($bn), 2006–2010
Figure 3.26: Indian mobile music market ($bn), 2006–2010
Figure 4.27: The music industry value chain
Figure 4.28: Categories of digital music service providers
Figure 4.29: Digital music sales by channel (%), 2007
Figure 4.30: Internet advertising market size ($bn), 2007-2011
Figure 7.31: Key players in digital music retailing
Figure 7.32: iTunes revenue ($m), 2004-2008
Figure 7.33: Napster revenue ($m), 2004-2008
Figure 7.34: Rhapsody revenue ($m), 2005-2008

List of Tables
Table 2.1: Global digital (online and mobile) music market size ($bn), 2005-2013
Table 2.2: Global digital platforms’ share in overall music market (%), 2004-2008
Table 2.3: Top ten countries’ split of digital music (%), 2007
Table 2.4: Global broadband subscribers and penetration (m, %), 2004-2007
Table 2.5: Global mobile subscribers and penetration (bn, %), 2004-2008
Table 3.6: Broadband penetration in developed markets, 2008
Table 3.7: US digital music market forecast ($bn), 2005-2013
Table 3.8: US digital platforms’ share in overall music market (%), 2005-2008
Table 3.9: US digital music market breakdown ($m), 2005-2008
Table 3.10: US digital music market breakdown (m), 2005-2008
Table 3.11: Japanese digital music market forecast ($m), 2005-2013
Table 3.12: Japanese digital platforms’ share in overall music market (%), 2005-2008
Table 3.13: Japanese music market share of online and mobile channels (%), 2005-2008
Table 3.14: Japanese mobile music market breakdown ($m), 2006-2008
Table 3.15: Japanese mobile music market breakdown (m), 2006-2008
Table 3.16: Japanese online music market breakdown ($m), 2006-2008
Table 3.17: Japanese online music market breakdown (m), 2006-2008
Table 3.18: UK digital music market forecast ($m), 2005-2013
Table 3.19: UK digital platforms’ share in overall music market (%), 2006-2008
Table 3.20: UK digital music market breakdown ($m), 2006-2008
Table 3.21: UK digital music market breakdown (m), 2006-2008
Table 4.22: Internet advertising market size ($bn), 2007-2011
Table 7.23: iTunes Music Store Snapshot
Table 7.24: iTunes revenue ($m), 2004-2008
Table 7.25: eMusic Snapshot
Table 7.26: Napster Snapshot
Table 7.27: Napster revenue ($m), 2004-2008
Table 7.28: Rhapsody Snapshot
Table 7.29: Rhapsody revenue ($m), 2005-2008
Table 7.30: Amazon MP3 Snapshot
Table 7.31: 7digital Snapshot
Table 7.32: Wal-Mart Music Downloads Snapshot

Note: Product cover images may vary from those shown

- iTunes
- Napster
- Rhapsody
- Amazon
- 7digital
- Wal-Mart

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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