Broadband Driving the Digital Music Market
Fourty one per cent of digital consumers say they began to download because they now have a faster Internet connection.
Other factors influencing the rise in both broadband and computer-enabled music activities are: purchasing a new computer (30% of respondents circled this option) and recent purchase of a digital/MP3 player (22%).
NPD Group stated that 4.2 million households tried and paid for digital music services in 2004. They estimate that the current market potential is 30 million consumers.
This market consists of music buyers who are both broadband-enabled and who use their PC’s for other digital music activities like ripping, burning or playing music stored on their PC.
Promotions were found to be important to this group of consumers with 34% reporting that they first downloaded music legally because of a special offer.
Music buyers are still confused regarding what they can do with the music they have purchased and downloaded. They are also concerned about the price of these services.
A telling statistic is that only 55% of buyers using legal services came back whilst a whopping 85% of peer-to-peer (P2P) users engaged in repeated usage in 2004.
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