Report

August 2003

• 49% of 12- to 22-year-olds downloaded music last month.
• Half of downloaders say they now buy fewer CDs.
• One in five young file sharers has downloaded a movie.

• File sharing has lopped $700 million off of music sales.
• Proliferating on-demand media services will overtake piracy.
• In five years, 33% of music sales will come from downloads.
• CD sales will be down 30% from their 1999 peak.
• Various forms of video on-demand will gross $4.2 billion.

• Portals and cable win the on-demand media sweepstakes.

• TV networks: Get those DVDs of popular series out quickly.

• Figure 1.  Downloading Is Far More Prevalent Among Young People
• Figure 2.  Downloading And Buying Behavior By Segment
• Figure 3.  Music Downloading And Video Sharing On The Rise
• Figure 4.  Do The Math: Almost $700 Million Lost To Downloading
• Figure 5.  On-Demand Music And Movie Services
• Figure 6.  Forecast: US Music Revenues, 2002 To 2008
• Figure 7.  Forecast: US Video Revenues, 2002 To 2008

 

• Online Resource
• Methodology
• Individuals Interviewed For This Report
• Companies Interviewed For This Report
• Related Research

• Yes, but what do young consumers really think?
• Would you rather be loved or feared?
• We’re shocked, shocked, to find out that copyrighted software is being shared.