Digital music to outpace physical media by 2007

Posted on Wednesday, March 15 2006 @ 17:08 CET by Thomas De Maesschalck
Sales of digital music will outpace revenue from physical media bought online by 2007, a new report from In-Stat concludes.

Healthy growth in the online music market will continue for the rest of the decade, with worldwide sales growing from $1.5 million in 2005 to $10.7 million in 2010, reports In-Stat. Additionally, In-Stat expects that revenue from downloaded music will outpace revenue from physical media bought online by 2007. This is evidence that the Internet is now a key distribution channel for legitimate digital music sales, and the mobile phone is also evolving into an important channel for digital music, the high-tech market research firm says.

"Consumers are clearly opting for legal ways to purchase music, and more legitimate music sites are available," said Stephanie Guza, In-Stat analyst. "But vendors still face significant obstacles including Internet piracy, interoperability concerns and the unlicensed use of digital streams."

Here are some of the conclusions:
  • Nearly half of the survey respondents admitted to downloading music from the Internet, and 64% of these respondents have paid for the music.
  • The largest percentage of respondents who have purchased music online spent between $10 and $20 in the last 12 months.
  • The most popular site used was iTunes, with 53% of music purchasers having used the site.
  • Interested in free legal music? Try out Real's Rhapsody two weeks for free. You can get it over here.

    About the Author

    Thomas De Maesschalck

    Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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