Current Outlook for Digital Music Services

Current Outlook for Digital Music Services Introduction Subscription services are now an integral part of the recorded music market, with 20 million paying subscribers globally in 2012 an increase of 44 per cent on 2011 Download sales increased by 12 per cent in 2012, to 4.3 billion The industry is less reliant on income from physical format sales, with their share declining The number of mobile users who pay a monthly subscription for access to music catalogues, either via download or streaming, from 61 per cent in 2011 to an estimated 58 per cent in 2012 will reach 178 million by 2015 61% 58% INIY 178 2011 2012 million Reasons why users choose download services Security/Ease of payment Trust the brand/company Guarantee that the service is legal Reasons why users choose subscription services Ability to discover new music Not having to download individual songs Flat rate Percentage of internet users aware of following music services + You Tube 90% i DEEZER + iTunes 31% 70% vevo + amazon 32% 68% 56% Spotty + Global Top Selling Albums 2012 Title Total Sales (M) UP ALL NIGHT TAKE ME HOME MERRY CHRI. BORN TO THE TRUTH UNAPOL- BABEL 21 RED OVER EXPOSED DIE ABOUT OGETIC 8.3 (M) 5.2 (M) 4.5 (M) 4.4 (M) 3.4 (M) 2.6 (M) 2.6 (M) 2.3 (M) 2.3 (M) 2.2 (M) ADELE TAYLOR LANA DEL ROD ONE DIRECTION ONE PINK RIHANNA MUMFORD MAROON 5 SWIFT DIRECTION REY STEWART & SONS 3. 4 6. 8. 10 Social Media Engagement 67% 46% 43% 34% 67 per cent of social network users in 20 countries discuss music and movies, ahead of community issues (46%), sports (43%) and politics (34%) Lady Gaga Justin Bieber Seven of the ten most followed people on twitter are artists, with lady Gaga and Justin bieber in first and second place Rihanna On facebook, nine in ten of the most 'liked' people on the social network are musicians, with rihanna alone attracting more than 62 million "Ilikes" What pirate and fair users think All internet Pirate users What consumers think users Search engines should give priority to legal digital music services over pirate services when they show their search results 60% 59% US$ 175 million FBI estimate on the Accessing music through services that don't have the copyright owner's permission is unfair to those creatin revenue generated by Megaupload 59% and producing the content 58% Companies should not advertise on websites that offer music without the copyright owner's permission 55% 56% I don't know where to find legal music online, so I use other services instead 24% 31% Frequents issues with streaming & downloads services Slow due to bad internet Firewall blocks the access while (? you are downloading files connection You can have problems with virus if you visit pirate sites Streaming problems are more likely to occur on a slow computer Annoying frequent updates of download programs Files are mislabeled Sometimes the file is ? Not enough bandwidth corrupt Lack of RAM so you have problems ? like stuttering, grainy and freezing images Video music streaming pauses or pixilated video O Computer is hardly able to play the file or receive it Referencias: http://www.ifpi.org/content/library/DMR2013.pdf http://www.juniperresearch.com/viewpressrelease.php?pr=236 http://www.delete-computer-history.com/slow-streaming-video.html http://reviews.cnet.com/8301-13727 7-10343224-263.html http://www.ehow.com/about_5436519_problems-downloading-music.html