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Data Suggests Mobile Apps Will Surpass CD in Sales By 2012

Bruce Houghton — Fri, 19 Mar 2010 16:07:27 +0000

Just how big is the market for mobile apps?

Global mobile apps will be worth $17.5 billion by 2012, according to an independent report commissioned by app store GetJar. Mobile app downloads across all types of handset are also expected to increase from over 7 billion downloads in 2009 to almost 50 billion in 2012 – a year on year growth rate of 92%.

This would mean that the value of apps sold would be greater than the projected $13.83 billion value of CDs sold in 2012.

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YouTube Was Helping The Music Industry In The UK

Bruce Houghton — Thu, 09 Apr 2009 13:56:47 +0000

Will PRS Dispute Hurt Sales?

A recent Ipsos MediaCT UK study showed that 50% of adult YouTube users went on to purchase music. 36% bought a CD, 15% bought a download and another 7% went on to buy concert tickets. The numbers could spell trouble for the UK music industry since YouTube recently pulled all music videos in the country in a dispute over royalties with rights agency PRS.

Many of those same adults that used YouTube for music discovery support the video channel’s takedown. 47% of adults surveyed believe that YouTube was right to take this action. 28% opposed to the move and 25% were unsure.

The same study showed a strong and steady shift among all age groups away from watching videos on TV and towards net viewing.

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Online Music Listening Making Push, Downloads Falter

Bruce Houghton — Wed, 01 Apr 2009 15:49:04 +0000

Teens age 13-17 bought 19% less music in 2008 than they did in ’07 according to a new NPD survey. CD purchases declined 26% and paid digital downloads fell 13% compared with the prior year. 32% of the teens who bought less digital music "expressed discontent" with the music available and 23% said that they already had enough music. 24% of teens said they had cut back all entertainment spending.

The downturn in paid acquisition was also matched by a downturn in the number of tracks downloaded from P2P networks which also fell 6% in 2008. The number of teens borrowing music, either to rip to a computer or burn to a CD, fell by 28%.

WHY BUY WHEN YOU CAN LISTEN FREE?

In contrast, NPD’s music tracking surveys noted sharp jumps in teen’s usage of online and satellite radio listening in 2008. 52% of teens istened to online radio in 2008, compared to 34% in 2007. Downloading or listening to music on social networks also saw a large increase from 26% in 2007 to 46% in 2008. (more)

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Digital Music Sales To Rise Dramatically In The Next 5 Years

Bruce Houghton — Tue, 02 Dec 2008 20:56:18 +0000

A new study by JupiterResearch, a Forrester Research company, predicts that digital music will grow from the current 18% to 41% of total sales in 5 years. Researchers credited stores like Amazon and the transition to mp3′s which make downloads portable for some of the increase.

The "U.S. Music Forecast 2008 to 2013" predicts that growth in digital music sales will not compensate for declining CD sales, with the U.S. music market shrinking over the next five years from $10.2 billion to $9.8 billion.

64% of subscribers to digital music services and 57% of those who download music also bought a CD in a store within the last year. Regular digital music consumers have shifted 60% of their music spending to digital. The study predicts that music on cell phones will only contribute 3% to overall sales or $300 million by 2013.

ANALYSIS: While the CD will continue to hang on, most..

major labels are already approaching 30% of revenue from digital. Last week Atlantic claimed that 50% of its revenue already come from digital. While some have disputed that projection, it seems that JupiterResearch has erred too far in the other direction. If digital does not account for 50% or even 60% of total sales by 2013, it will only be because the industry has continued to build roadblocks to its own success.

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