Online music purchases double between the 1st & 2nd quarter of 2003
Posted on 26/11/03 15:11 by Seán Byrne                             
Online music purchases double between the 1st & 2nd quarter of 2003

With a wide range of legal download services across the web, the number of users switching from accessing free shared downloads to legal based services is sharply rising.  During the 2nd quarter of this year, ten million Americans made on online music download purchase which amounts to 16% of the total music downloads made whether legal or not.  This compares with 13% in the first quarter and 8% in the last quarter of 2002.

The percentage of legal purchases also varies between age groups.  The 12-17 age group are the least likely to purchase music at 4% due to their low disposable income and not owning a credit card.  The 18-24 age group make up 22% despite their low income and tendency to go after the free services at college and university.  The 25-54 age group make up 19% even though these consumers tend to have the most disposable income.  Males are more likely to pay for downloads compared with females at 17% against 15% respectively.  Portable MP3 players are also on the rise with 19% of US downloader's owning one in the 2nd quarter, compared with 12% in the last quarter of 2004.  As this data has been collected in late June, it will be interesting to see how the third quarter compares with the arrival the Windows' iTunes, Napster and several others. 

Ten million Americans paid to download music during the second quarter, according to the latest statistics from market research company Ipsos-Insight.

That figure amounts to 16 per cent of the total number of US-based users who download songs, legal and illegal, the company said..

That compares with eight per cent in Q4 2002 and 13 per cent in Q1 2003.

The research takes into account downloaders aged 12 and up. Those aged between 18 and 24 are most likely to have paid for downloads - 22 per cent of them have done so - followed by 25-54 year olds (19 per cent). The latter group isn't surprising, given their high disposable income and general preference for 'legitimate' product. While 18-24 year olds consume more music, you'd expect that group to be among those most likely to choose free services like Kazaa and Grokster.

In fact, it's the 12-17 category who are least likely (four per cent have done so) to pay for their music downloads, but even with moves to attract this credit card-less constituency, their low disposable income is likely to be targeted at media harder to obtain for nothing.

Males are slightly more likely to pay for downloads than females: 17 per cent to 15 per cent.

"Downloaders of all ages are clearly beginning to experiment with fee-based online music distribution in increasing numbers," said Ipsos-Insight's Matt Kleinschmit. "This is significant in that these data were collected in late June, prior to the recent release of multiple Windows-based online music services." And around the time of the Recording Industry Ass. of America's highly public legal action against alleged copyright infringers.

With the RIAA's aggression temporarily abated, and the arrival of a number of Windows-based iTunes-style online music services - BuyMusic, MusicMatch and Napster, to name three - plus the opening of the Apple service to Windows users, we look forward to the next set of figures.

The researcher bases its conclusions on a survey of 1112 downloaders aged 12 and over. The survey was conducted for three days at the end of June. The figures are detailed in Tempo: Keeping Pace with Digital Music Behavior, a quarterly report published by Ipsos-Insight.

The survey highlights another trend: 19 per cent of US music downloaders owned a digital music player in Q2, up from 12 per cent in Q4 2002.

"The rise in portable MP3 player ownership among US downloaders, coupled with the growth in paid downloading, suggests that digital music enthusiasts may be shifting their overall music acquisition and listening behaviors from a physical to a digital approach," said Kleinschmit.

 

It is not surprising that legal download services are on the rise in the US due to several factors.  The main one being that one can purchase most music by the individual song without being forced to purchase the full album or an expensive 'single'.  Next, with the massive clamp down on music file sharers by the RIAA , many are trying to find alternatives.  While most may resort back to copying CDs and taping off the radio, there are still a considerable percentage who would be willing to try out a legal alternative. 

 

The main downsides to download services compared with free MP3's are the usage restrictions and the limited selection of music.  When compared with traditional CDs, downloadable music cannot be resold and is also encoded in a 'lossy' format, thus the sound quality is not as good as the music purchased on CD.

 

Discuss and read more about legal download services on our Music Downloads, P2P & Legal Issues Forum

Source: The Register

Reactions
Discuss this article with your fellow community members! We appreciate your valuable input, but please keep the reaction policy in mind and make sure your reaction is constructive.
By Sherrif, Thursday 27 November 2003 01:12
Very impressive figures....I would be more impressed if I was told 10 million goobers gave up fast food.....who gives a rats arse....spin doctors pour out figures in hometown USA as if it is a world trend......This is like a rise in the sale of soft drugs because hard drugs are in short supply...I suspect many people are trying this out until a safer P2P engine hits the market......The media industry have had their warning...ignore it at their own peril........cool
Name: Email:



Your comment:

Receive notification on new comments?