Report

August 2002

• 31% of consumers download music and burn CDs often.
• These frequent digital music users buy 36% of all CDs.

• Why the music slump? It's the economy, not downloading.
• Paid services don't match the "Music Bill Of Rights."
• Paid downloads will restore sales growth in 2004.
• In five years, 39% of digital sales will be downloaded singles.
• Established acts like Springsteen reap download rewards.

• Labels concentrate on promotion and accounting systems.
• Film studios find that peer-to-peer is great for business.

• Figure 1.  All Four Digital Music Segments Haven’t Slackened On CD Buying
• Figure 2.  Current Paid Services Fail The Music Bill Of Rights
• Figure 3.  Forecast: US Digital Music Users And Downloads, 2002 To 2007

 

• Online Resources
• Methodology
• Companies Interviewed For This Report
• Related Research

• Truth or consequences for beleaguered music executives.
• Is the server business about to get Real?
• Finally, an iPod for the rest of us.
• Can StreamCast survive?