New teen research study claims that more are choosing legal online music services, but also says that iTunes market share is decreasing dramatically as well.
The results of a new teen survey, conducted by financial analyst firm Piper Jaffray, seems to hint that young music fans are slowly turning towards paid online music sources to acquire content over P2P and file-sharing networks.
The survey involved some 980 students.
P2P is still their main source for acquiring music, but its market share fell to 64% from 72% last fall. Meanwhile, 36% of teens said they now buy music from legal online services like iTunes, up from 28% last year.
Interestingly enough, even though iTunes remains the primary source of legal online music content, it’s market was down to 79% from 91% last year!
Who’s filling the gap? It’s not Rhapsody or Napster making up the difference, which each hold a 2% share of attention. Instead, it’s the “other” category that includes Amazon.com,Walmart.com, eMusic, etc.. Exactly which one of these “other” services is responsible for the dip in iTunes market share isn’t clear, for the survey didn’t ask respondents to identify their alternative sources.
The reason for iTunes dip in market share is probably due to the fact that an increasing number of digital download services offer DRM-free tracks at the magic 99cents threshold, whereas Apple charges a premium in its iTunes “Plus” store to acquire similar content.
Why teens are using P2P and file-sharing networks in lower numbers isn’t clear from the study, but being that it only covered a mere 980 people and is expected to extrapolate a demographic group in the tens of millions leaves much to be desired from the results.
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Well until it gets to be more reasonable than 99 cents they can forget about me purchasing anything. I just think that is highway robbery for a dollar a song. And I will not purchase tracks online until the price gets lower.
What?I dont know anyone in my school that uses itunes to legally download music. These studes are bull.
I would want to see how they picked the participants I have a feeling these numbers were fudged.
Even if this study is bull shit its good for us. If P2P is no longer seen as a threat and people are seen as wanting to purchase music legally then we can see an up tick in sites that offer digital downloads. The most reasonably priced and least restricted will survive and the whole music industry will finally change. Plus the bad press may finally get off P2P and law enforcement and legislatures will start ignoring it again.
I HOPE that they DO lay off p2p….though that is just a dream……but if enough major artists like madonna tell their major label to go jump in a lake it may just make the labels sit up and take notice. Time will tell.
Madonna was paid 120 million for her new contract. If you think this new company won’t try to strong arm that investment then you are crazy. The announcements like NIN Radiohead and the canadian music creators coalition are the ones that are making a difference in the industry they will bring about the greatest change.
Either way….it STILL give the big 4 a black eye!
WHATEVER the reason was for her cutting them loose…and for your information…I SERIOUSLY DOUBT that this new company will be as bad as the RIAA and the big 4 are now. That is my point!
True but to me it still just seems like its taking a mouse away from a tiger and giving it to a lynx still going to be vicious just doesn’t have as much power.
Just to add even more bones to my argument Live Nation was created Clear Channel as a side project and we all know what kind of jerkoff’s those guys are.
Well they DON’T have an RIAA organization that goes out and sues people so until they do I don’t see HOW this could be bad.
All I have to say is HAHAHAHAHAHAHAHA at the fact they think High School students pay for music. Most of them can’t even pay for gas in their car… much less pay for music.
if someone in a buisness suit walked up to me and asked me if i download music legally i’d tell him yea cause i’d be nervous odds are this is what happened in this study