Electronic Online Music Market Opportunities, Strategies, and Forecasts, 2004 to 2009

Report # SH29821330 | 283 Pages | 91 Tables and Figures | 2004


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Electronic Online Music Market Assessment

Check Out These Key Topics!

Online Music Markets and Forecasts

Online Music Services

Restructuring the Network for Advanced Multimedia Services

Information Sharing Between Different Environments

Streaming Media Segments Digital Online Music Standards

Recording Industry Association of America

Network Strategy

Operating System Focus on Media Delivery

Electronic Online Music
Market Opportunities, Strategies, and Forecasts, 2004 to 2009

Music is universal. Everyone loves music. Doctors, lawyers, kids, moms, daddies, old people, babies, everyone loves music. Most people prefer listening to music than to making music. Online music downloading has been enormously popular. The industry has struggled a little to reign in illegal music downloading. That battle appears to have been won.

Online music markets are set to grow. By making music accessible and with prices set at a reasonable cost, defacto industry standards are being put in place. The defacto industry standards are coming from Apple, Real, and Microsoft.

Service providers have 500,000 songs available for download. Celebrity play lists are one way of attracting listeners to a site. Online music providers feature exclusive tracks from major artists.

Online music single costs range from$.79 per song to $0.99 per song and $10 for an album. People can compose their own albums. As prices for songs drop to $0.29 per song by 2009, markets will achieve new growth. The music industry is set to take some lessons from the DVD industry.

The broad acceptance of the Internet is creating demand for a means of music media content delivery. Digital music media is set to leverage the Internet transmission system. Consumer markets have accelerated demand for sophisticated communications transmission.

Apple has achieved a dominant position in the music industry by making downloadable music easily available. The company now accounts for one percent of the music industry revenue. It is well positioned to address growth in online music.

Virtually all music will be downloaded by the end of the forecast period. Traditional retail outlets have failed to address the changes brought by the Internet.

A market of downloadable music services includes Apple iTunes service. Hewlett Packard is including Apple music software on its machines. HP is positioned to help Apple expand its online music service beyond Macintosh computers to the PC market that uses Windows.

Rhapsody offers unrestricted access for file-sharing. People can listen to hundreds of songs or hundreds of albums for the same low price. That flexibility is helping make Rhapsody the leading online music service for consumers.

Rhapsody has an unlimited listening approach designed to encourage subscribers to explore a wide variety of musical artists and styles. By paying $9.95 for unlimited access to the service library of 28,000 albums, people get a bargin.

Napster offers a free trial to get people to try the fee-based music downloading service. Napster features top streams. Napster offers access to tracks. Napster premium permits listening to and downloading 500,000 tracks for $10 per month.

500,000 songs from all genres of music are available. Napster seeks to make the digital music experience is easy and fun for all music consumers. Integrating popular devices with the service allows Napster to make it easy to move digital music onto a device directly.

Napster focus is on consumer choice. The nucleus of the digital music service is positioned to ensure that music fans have high-quality experiences. Individual needs are a priority. Over 60 devices from a variety of manufacturers are available that support WMA. Napster provides music in WMA format. This gives Napster customers the combination of device, a music service, and a flexible, high quality music format.

Markets at $359.1 million in 2003, are expected to be $14.7 billion by 2009.

Companies Profiled

Apple Computer
CNET Networks
Hewlett Packard
Liquid Audio
Liquid Digital Media
Matsushita Electric Industrial
Wal-Mart Stores

MontVista Software
Music Choice
Music Now/Full Audio
Music Net
Real Networks
Sonic Solutions

Report Methodology

This is the two-hundred eleventh report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment. The project leaders take direct responsibility for writing and preparing each report. They have significant experience preparing industry studies. Forecasts are based on primary research and proprietary data bases. Forecasts reflect analysis of the market trends in the segment and related segments. Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment. Market share analysis includes conversations with key customers of products, industry segment leaders, marketing directors, distributors, leading market participants, and companies seeking to develop measurable market share. Over 200 in-depth interviews are conducted for each report with a broad range of key participants and opinion leaders in the market segment.

About the Company

WinterGreen Research, founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology. Industry reports focus on opportunities that will expand existing markets or develop major new markets. The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets. Market shares are provided. Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

About the Principal Authors

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries. Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services. She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration. She is the author of recent studies on worldwide telecommunications markets and the Top Ten Telecommunications market analysis and forecasts.

Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications. She holds several patents in microcomputing and parallel processing. She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets. Ms. Eustis is a graduate of Barnard College.

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