Report: Worldwide Online Music Market to Grow 134% in 2005
Posted on April 25, 2005While Peer-2-Peer and piracy issues have not entirely disappeared, consumers are showing heightened awareness and interest in legitimate online music services, reports In-Stat. The worldwide online music market is expected to grow 134% this year, reaching $1 billion for the first time. With increased competition between sites this year, differentiation will be a key strategy. Sites are building larger catalogs and working with labels to offer new types of digital content, such as live concerts and re-mixes. In addition, branding and customer loyalty will be a primary focus.
A recent report by In-Stat included a consumer survey and found the following: More than half of the survey respondents who have downloaded music from the Internet admitted to not paying for it. The average amount spent in the past year for online music was $25. 35% of the respondents are owners of an MP3 player, with 70% saying it was their first one.