Report

January 2000

Digital Downloads Accelerate

Carrie Johnson 		Almost 25% of media products sold online will be digitally downloaded in 2004. A new breed of media merchants will combine adjacent categories -- books, music, software, and video -- to serve media-hungry consumers.
by Carrie Johnson with David Cooperstein, Jennifer Lee

INTERVIEWS
  • Half of media retailers already toy with digital downloads.
  • Book and video sellers expect digital downloads to take root for them in three to five years.
ANALYSIS
  • In 2004, 22% of online media products, led by software and music, will be downloaded.
  • Media merchants will emerge to serve all-media consumers.
ACTION
  • Brick-and-mortar stores must prepare for a makeover.
  • Retailers must hire tech-smart customer service reps.
WHAT IT MEANS
  • Environmentalists will embrace digital downloads.
  • Hoodlums will trade CD shoplifting for apparel snagging.
 
Figures & Data
  • Figure 1.  Online Media Retailers Step Into Digital Downloads
  • Figure 2.  An Uncertain Future Awaits Media Retailers
  • Figure 3.  Technology And Rights Issues Are Overcome In Stages
  • Figure 4.  Software And Music Lead Early Digital Download Forecasts
  • Figure 5.  Media Merchants Become Product Innovators
  • Figure 6.  Likely Media Merchant Winners
   
RELATED MATERIAL 
  • Companies Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • If it looks like a book and smells like a book . . .
  • Gumballs, music, it's all the same.
  • The medium sends a message.
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