Abstract
This up-to-the minute market research publication provides a concise,
value-intensive investigation covering a range of information - from detailed
market analyses through industry trends - to quantify and qualify the market
for downloaded music via online or mobile formats. Forecasts and trends are
gleaned from industry sources as well as from considered assessment of
available and emerging technologies. The report provides historical revenues
from 2002 to 2007 for the overall and downloaded music markets and develops
forecasts for the market for online and mobile music download-related services
and products from 2008 through 2013.
STUDY SCOPE AND FORMAT
This report analyses products, services, markets, and technologies in use and
in development in the downloaded music market. Among the main trends and
issues discussed are the response by the industry to illegally obtained
downloaded music and the explosion of innovative business models to exploit
the opportunities in this rapidly evolving market. The Overview section
provides a discussion of the history and rapid evolution of the downloaded
music market, with an emphasis on the impact of digital technology and how
this is changing the way the world purchases music. The Issues and Trends
section discusses the growth in certain technologies - in particular broadband
and mobile telephone - that are changing the venues through which people buy
music. Also discussed in this section are the very problematic issues of
copyright infringement and illegal downloads, how these have affected the
music industry overall, and steps being taken to address this crisis,
including efforts to involve internet service providers (ISPs) in the policing
of illegal file sharing. The Technology section compares and analyzes common
digital audio formats, download formats, and devices. The Products and
Markets section discusses and analyzes distribution models, format options,
and markets. Comparative sales analyses are provided for the various
channels, technologies, devices, and formats utilized in the marketing of
digital music. Tables include current and forecasted sales by technology,
channel, and format for the global and U.S. downloaded music markets. The
section on Industry Structure provides an overview of challenges and solutions
in the fast-changing music download market including detailed discussion of
various business models. Direct-to-consumer business models that remove many
of the distribution and marketing layers found in the traditional music
industry are emphasized. The Company Snapshot section profiles companies that
have paved the way in the digital audio download market as well as those
working on the next innovations.
METHODOLOGY
The base year for this study is 2008. Figures are based on revenue figures at
the manufacturers' level and are projected at 2008 dollar value; that is,
inflation is not computed into the projection figures.
The term “digital” in this report is used synonymously with
“downloaded,” even though, strictly speaking, CDs are a digital
format. CDs are included in the category of physical media in this report.
This study was compiled from information obtained from artists, producers,
record label executives, marketing strategists, and others involved in the
music business in general as well as those specifically engaged in the
download music market.
INFORMATION SOURCES
The information and analyses presented in this report are based on an
extensive survey of the music and downloading industries, companies producing
products and services that address this market as well as a detailed
examination of published literature and reports obtained from music and
national and international recording trade associations and organizations. Key
information from the business literature was used as to obtain expert opinion
on commercial potential and market sizes from industry professionals.