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.
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SOURCE Ipsos; Ipsos-Insight