Pay-per-Download Remains Most Preferred Fee-based Method Over Recently Launched Portable Online Music Subscriptions

Quarterly digital music study, TEMPO: Keeping Pace with Digital Music

Behavior, reveals Peer-to-peer file-sharing continues to be significant

market factor

Apr 08, 2005, 01:00 ET from Ipsos from ,Ipsos-Insight

    NEW YORK, April 8 /PRNewswire/ - Amid increased growth in fee-based
 digital music experimentation and continued strong sales of portable MP3
 players, the recent launch of a new generation of portable online music
 subscription payment methods may require substantial incentives to encourage
 broad consumer adoption, according to new research from global marketing
 research firm Ipsos-Insight.
     Fee-based Online Music Subscriptions Face Challenge from Traditional
     a la Carte Methods
     In the most recent wave of TEMPO, Ipsos-Insight's quarterly study of
 digital music behaviors, a representative sample of U.S. music downloaders
 aged 12 and older were presented with simulated digital music acquisition
 environments consisting of various options for obtaining online music. One of
 these simulated environments included an online peer-to-peer (P2P)
 file-sharing network, an on-demand streaming PC-tethered subscription-based
 service, and an a la carte pay-per-download service.
     Downloaders who have experience paying for online music are most
 pronounced in their preference for pay-per-download methods, as 28% of these
 consumers reported a preference for the a la carte option, 4% for an on-demand
 streaming PC-tethered subscription-based service, and 8% preferring the new
 portable subscription service. Meanwhile, downloaders with past experience
 using fee-based online music subscription services and those who currently own
 a portable MP3 player are most receptive to the new portable online
 subscription service, with 17% and 11% respectively choosing this method of
 purchasing fee-based online music in a simulated competitive context.
     Peer-to-Peer File-sharing Remains a Formidable Market Presence
     Another key finding from this recent research is that despite increased
 fee-based experimentation over the past year (see below) and continued legal
 action against individual file-sharers, the presence of peer-to-peer
 file-sharing options in the market remain an influential force on consumer
 digital music acquisition behavior. Over three-fifths of current U.S.
 downloaders (62%) demonstrated a preference for peer-to-peer file-sharing when
 presented with a simulated market.
     To peruse the full release, please go to:
     For more information, please contact:
     Matt Kleinschmit
     Vice President

SOURCE Ipsos; Ipsos-Insight