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Consumers Not Receptive to Music Subscriptions
Only 8% of MP3 Owners are interested in a Portable Music Service
Portable music services will not have a big impact this year, according
to Parks Associates’ new report
Digital
Music: Analysis and Forecasts. Respondents in the recent Parks
Associates survey
Global
Digital Living strongly favored the single-track purchase model
over a subscription when presented with both options. Roughly 40% said
they were likely to buy songs one at a time, but only 8% were likely to
use a subscription service.
“The market has a long way to go in promoting subscription models,”
said John
Barrett, director of research at Parks Associates. “There is hope
Microsoft’s Janus technology will boost the digital music market by
enabling portability and greater integration of hardware and content.
However, our data show the industry needs to translate these solutions
into something more tangible and desirable to consumers. At present,
consumers either do not fully grasp the value of a subscription
‘all-you-can-eat’ service, or they simply don’t want it.”
According to
Digital
Music: Analysis and Forecasts, the industry is beginning to
promote “buffet” music plans, which allow users unlimited downloads for a
flat monthly fee, to compete with a la carte models such as iTunes.
Technologies such as Microsoft’s Janus promote this paradigm of use,
although few MP3 players save for some very expensive models currently
support these solutions. The report, citing both limited availability and
limited enthusiasm from consumers, predicts sluggish growth for these
solutions this year, but it is more bullish on the long-term prospects
because hardware could be subsidized under a subscription model.
Digital Music: Analysis and Forecasts provides an in-depth look at
the significant issues, technologies, and players in the digital music
industry. It examines the consumers using digital music and portable MP3
players, how these files and devices are being used, and who is likely to
buy over the next year. Moreover, the report profiles households with
PC-to-stereo connections and online music providers. The report also
features data from
Global
Digital Living, a multinational research program that surveys
customers in thirteen countries spanning four continents.
For additional information on
Digital
Music: Analysis and Forecasts or
Global
Digital Living, visit
http://www.parksassociates.com or contact 972-490-1113 or
sales@parksassociates.com.
About Parks Associates: Parks Associates is an
internationally recognized market research and consulting company specializing
in emerging consumer technology products and services. Founded in 1986, Parks
Associates creates research capital for companies ranging from Fortune 500 to
small start-ups through market reports, primary studies, consumer research,
custom research, workshops, executive conferences, and annual service
subscriptions.
The company's expertise includes new media, digital
entertainment and gaming, home networks, Internet and television services,
digital health, mobile applications and services, consumer electronics, and home
control systems and security.
Each year, Parks Associates hosts executive thought
leadership conferences CONNECTIONS™, in
partnership with the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks
Associates produces the online publication Industry Insights in
conjunction with the CONNECTIONS™ Conference series.
http://www.parksassociates.com |
http://www.connectionsconference.com |
http://www.connectionseurope.com
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http://www.connectionsindustryinsights.com
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