Research Suggests Subscription to Give Major Boost to Digital Music Downloads
7th March 2011 18:08 - Information Technology
Studies conducted by Research Company Ovum point to annual digital music revenues reaching £12.3 billion by 2015, largely due to consumer uptake of subscription services.
The research predicts music subscription services will increase by over 60% between 2011 to 2015, which will see individual track downloads from outlets such as iTunes losing their market share.
Digital music analyst at Ovum, Mark Little, commented: “Digital music will experience what might appear to be healthy growth over the next five years, but there’s a danger this could mask the fact that the industry isn’t maximising revenue potential... There’s too much free music available, and not just the illegal kind. Free internet radio such as Pandora or Grooveshark, and freemium on-demand music services such as Spotify, are offering music without maximising advertising or premium subscription revenues for themselves or the industry”
The research by Ovum also revealed that the growth in individual tracks downloaded from digital music stores slowed in the US to 3% during 2010. This decline is likely to be mirrored in Europe. This further indicates that the industry is still unable to cope with the huge amount of free music available online.
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