Online Consumers Rocking The Music Business
Digital online music is nothing new. Once thought by the music industry to be the enemy it is now proving to be a profitable ally as digital download sales continue to increase. Over the past three years digital music sales have steadily risen according to Nielsen SoundScan.
A new report from the Digital Media Association suggests that online music consumers are energizing the music industry. 60 percent of those surveyed say they are listening to more music since they have gone online and that the Internet has broadened their musical tastes and exposed them to new artists.
The survey found that online music listening has increased music discussions with friends and co-workers. 35 percent say they talk about music more often and 75 percent say they have recommended a music service to a friend or co-worker.
Listening to and purchasing music online also lead to increased concert attendance according to the survey. 15 percent of online music fans said they attend more concerts.
“These findings demonstrate that real music fans – today’s music tastemakers – are online,” said Jonathan Potter of the DiMA. “Consumers of innovative online music services are reviving the music economy as they enjoy more music in every way possible.”
The survey also found that consumers of online music are spending more on music than those that are offline. Around half of digital music fans spend $200 a year on music, while 30 percent are spending $300 or more.
“Prior to the digital age, someone who purchased six CDs per year – valued at just over $100 – was considered a significant music consumer,” said Mr. Potter. “Online music consumers’ spending habits, combined with what they are doing to promote and expand music enjoyment, is great for the entire music industry – artists, songwriters and producers.”