The Online Music Market: Own vs. Rent ~ Will Consumers Buy Into It?
In-Stat/MDR, March 2005, Pages: 51
The online music market has come a long way in the past few years. More than 200 sites offering digital downloads are now available. While Peer-2-Peer (P2P) and piracy issues have not entirely disappeared, consumers are showing heightened awareness and interest in legitimate online music services.
Today’s online music services offer users the ability to pay per download, buy a monthly subscription, or a combination of both. However, companies involved in the market may not all have music sales as their primary goal. With increased competition between sites this year, differentiation will be key. Services hope that creating interesting ways for users to discover music will help increase interest in new music, as well as the bottom line.
The report reviews business models and trends in the industry, as well as market drivers and challenges. The report also includes results and analysis of an online survey about the online music market and forecasts worldwide revenues for the industry.
Executive Summary
Methodology
Introduction
Who is Involved in This Market?
Some Music Industry Statistics
Online Services and Content
Business and Revenue Models
Types of Services
Stand alone
Napster
RealNetworks
Those using online music to further other business interests
Wal-Mart
Microsoft
Yahoo
Apple
Sony
Services Bundled with Carrier/Operator
Market Drivers
Broadband
Availability of Services and Compelling Content
Consumer Awareness
Installed base of MP3 Players
Mobile Phone Industry
Industry Challenges
Differentiation
Compatibility of Formats & Ease of Use
Piracy
Consumer Perspective: Technology Adoption Panel (TAP) Survey Results and Analysis
Primary Method of Connecting to the Internet at Home
Do You Have a Home Network (Either Wired or Wireless)?
Have You Downloaded Music from the Internet?
Have you paid for it?
Who are the people who have?
What Music Service Have You Used Most Often to Purchase Music in the Last 12 Months?
Ease of Setting Up an account
Ease of Check Out
Ease of Finding What You Wanted on the Site?
Would You Use This Service Again?
What Type of Music did You Purchase Online?
Approximately How Much Did You Spend on Online Music in the Past 12 Months?
What Type of things are you interested in finding in an online store?
Rate the importance of the following criteria when choosing an online service
When you shop for music online, which of the following best illustrates your typical behavior?
Which of the following is of most interest to you in an online music store?
Which, if any, of the following do you do with the music after downloading it?
Which, if any, of the following devices do you own?
Is the MP3 player the first one you have owned?
What type of MP3 player(s) do you own?
What brand(s) of MP3 player do you own?
Are you planning to buy an MP3 player in the next 12 months?
What type of player are you most likely to buy?
What brand of player are you most likely to buy?
Would you prefer to listen to your digital music on your mobile phone or an MP3 player?
Review of Service Providers
North and Latin America
Europe
Asia Pacific
Music Forecasts
Worldwide Total Market and Online Revenues
Physical Products vs. Downloads/Subscriptions
Regional
Concluding Thoughts
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