The Digital Music Market Outlook: Evolving Business Models, Key Players, New Challenges and the Future Outlook
Scripp Business Insights, June 2009, Pages: 132
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 grow from $4.81bn in 2009 to $13.74bn by 2013, representing a CAGR of 30%.
The industry is characterized by rapidly changing structure and an evolving value chain. New players are entering the market for digital music distribution and rapidly expanding their revenue streams to match consumer demands. Various partnerships and tie-ups are emerging between players across the value chain.
Music piracy remains the most critical challenge that the industry is faced with. Another major issue is that of interoperability across various digital music services and devices, which is being dealt with by shifting towards DRM-free music downloads.
The global digital music market has significant growth potential. The relatively more developed markets include the US, Japan and western European countries such as the UK, France and Germany. Emerging markets that present enormous potential include China, India and Brazil.
Use this report to...
- Understand the global digital music market with this report’s study of the market in terms of product innovation and evolving market structure.
- Analyze the growth trends in the market to predict key areas of opportunity including market structure, dynamics and trends in the developed markets (US, Japan, UK, France and Germany) and emerging markets (China, India and Brazil).
- Examine the challenges facing the global digital music market with this report’s study of the evolving business models and the major transformations taking place in the market abd their impact on leading companies.
- Benchmark your performance against leading digital music service providers by using the company overviews of key players in the industry, including their services, operational and financial performance indicators and strategy provided in this report.
Explore issues including...
New players entering the market: As the industry envolves new players are entering the market for digital music distribution. Increasing competition is prompting the companies to respond to the changing customer demands and differentiate their services to retain their customers.
Changing market dynamics: The availability of free music on the internet has prompted companies to adapt their business models as per the changing market dynamics. Ad-supported sites and social community websites are gaining more prominence in the industry.
The growth of piracy: Piracy is a major problem for the global digital music industry. The number of illegal downloads has increased from 20bn in 2005 to 40bn in 2008, corresponding to 95% of the total music downloaded in that year.
Lack of interoperability: The inability to inter-operate between various digital music services and devices has been a major issue hindering the growth of the industry. Record labels have taken a significant step towards resolving this issue by offering DRM-free tracks that can play across different platforms and devices.
Discover..
- What are the current trends in the digital music industry?
- Which regions are more developed markets and which are the emerging areas presenting potential growth opportunities?
- What is the industry structure and how is it changing as the pattern of music consumption is changing?
- How are the industry players responding to recent changes in the market?
- What are the key challenges facing the industry and how are they being dealt with?
- Who are the leading players in the market?
- How do the leading companies compare in terms of their market share, operational and financial performance, service offerings and strategy?
- How is the industry expected to evolve and what is the future outlook?
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
- iTunes
- Napster
- Rhapsody
- Amazon
- 7digital
- Wal-Mart
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
