Number of Legal Downloaders Doubled in 2004

Tuesday, February 22, 2005 | 01:46 PM

The Online Reporter is a terrific Tech/Media/Entertainment journal that does a grat job covering the intersection of these areas. If you are int he business of following these firms, do yourself a favor and subscribe tot hem (that's an unsolicited endorsement).

Here's their latest take on legal digital downloading:

Ipsos-Insight has released the findings from its most recent TEMPO quarterly study of digital music behaviors - and the results should please the record industry. The study found that as of December, some 47% of US music downloaders age 12 and older - 24 million people - had paid to download music files off the Internet. That's more than double the 22% who had done so a year earlier and five times the number who had paid to download music in December 2002.

According to the TEMPO research, folks in the 25-54 age range are the most likely to have paid to download digital music, with 50% of 25-to-34-year-olds and 53% of 35-to-54-year-olds having done so. Additionally, the younger crowd, those aged 12 to 17, are starting to pay for the tunes they download as well. Some 50% of that group says they've paid for digital music, which Ipsos-Insight says suggests that recent efforts to promote pre-payment methods to teens are proving successful.

"Over the past year, the online music market has proved that it is growing into a formidable music distribution channel marked by rapid growth and increasingly dynamic usage levels," said Ipsos-Insight VP and TEMPO author Matt Kleinschmit. "While fiercely competitive online music services and download stores undertake high-profile efforts to attract consumers to their respective sites and business models, it is clear from these data that consumers are increasingly experimenting with legitimate online methods of music acquisition."

The battle of the sexes is pretty much a draw these days, with 49% of male downloaders and 45% of female downloaders paying to acquire digital music. This is quite a different scene than a year ago, when only 16% of female downloaders and 24% of male downloaders were paying to do so.

For the first time, the study found equal shares of the US population downloading from fee-based and P2P download sites - 11%. This, according to the research, was driven both by the increase in fee-based downloading and by gradual declines in file sharing among the US population over the past two years, down from 13% in December 2003 and 19% in December 2002.

"This marks a potential turning point in the evolution of digital music, as the proportion of Americans using file-sharing services and fee-based services has intersected for the first time," said Kleinschmit. "This is significant both functionally and symbolically, as operators of fee-based digital music Web sites are finally seeing American downloaders embrace their services, and the broader industry can now see empirical evidence that fee-based online content can survive and even flourish while non-licensed content remains available. This was thought to be impossible only a few years ago - before convenient, flexible and content-laden consumer-focused online music services, a growing population of portable device owners, and continuing enforcement efforts nurtured this nascent marketplace.

Of course, downloading doubling  reflects little more than the success of Apple's design and marketing strategy, and has precious little to do with the music industry. But hell, they'll take it.

>

Source:
THE online REPORTER
February 19-25, 2005 - Issue 432
Published weekly by Rider Research

Tuesday, February 22, 2005 | 01:46 PM | Permalink | Comments (0) | TrackBack (2)
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Listed below are links to weblogs that reference Number of Legal Downloaders Doubled in 2004:

» Doubling Up from Managing Rights Management
The number of people reporting that theyhad bought music on the net doubled from 2003 to 2004, this according to a research report liberally quoted by Barry L. Ritholtz. The except doesn't indicate what happened to dollars spent over the [Read More]

Tracked on Feb 23, 2005 2:45:43 AM

» Doubling Up from Managing Rights Management
The number of people reporting that theyhad bought music on the net doubled from 2003 to 2004, this according to a research report liberally quoted by Barry L. Ritholtz. The excerpt doesn't indicate what happened to dollars spent over the [Read More]

Tracked on Feb 23, 2005 6:44:09 AM

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