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November 29, 2005

European Teens Like Downloading Free Music According to Jupiter Research

A new Jupiter Research report has some potential bad news for the music industry.  It found that those in Europe who download music illegally outnumber paid subscribers by a ration of 3 to 1.  It also found that a third of of those between the ages of 15 to 24 share music illegally.  The concern is that this group may never develop legal buying habits, and this may erode the market for paid on-line music.

Jupiter analyst Mark Mulligan was quoted by the BBC as saying "The digital youth of today are being brought up on a near limitless diet of free and disposable music from file-sharing networks.

"When these consumers age and increase spending power they should become key music buying consumers.  "Unless the music industry can transition these consumers whilst they are young away from free consumption to paid music formats, be they digital or CDs, they may never develop music purchasing behaviour and the recording industry could suffer long-term harm."

PC Pro cited a Harvard study the confirmed that music swapping led to a decline in CD purchases, but that the effect was uneven.  The top 25% of artists saw sales declines while the bottom 75% saw increases. 

The BBC article is here.  The PC Pro report is here.

November 29, 2005 | Permalink

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