Online Consumers Are Re-Energizing the Music Industry

Washington (DC), USA – PRNewswire-USNewswire – Digital music consumers listen to more music, enjoy more new music, talk more about music and attend more concerts, according to a survey released today by the Digital Media Association (DiMA).Nearly 60 percent of online music consumers report that they are listening to more music since they started using an online service. The 1008 consumers surveyed enjoy Internet radio, subscription music services, and pay-per- download music services, including AOL Radio, Yahoo! Music, iTunes, Rhapsody, Zune, Urge, Napster, Pandora, Live365 and others.

The vast majority of online music service users report that enjoying music over the Internet has expanded their musical tastes, allowing them to discover new artists and explore new music genres. About 25 percent reported having discovered a lot of new artists, while more than 60 percent of consumers surveyed say they have discovered some new artists. Nearly 7 in 10 online music consumers are enjoying new genres of music since listening to online music services.

According to the survey, online music listening has increased music fans’ overall music discussion with friends and co-workers, with more than 35 percent now talking about music more. And, more than 75 percent of online music consumers report they have recommended a particular service to a friend or co-worker.The survey also found that listening to and purchasing music over the Internet
increases concert attendance. A full 15 percent of online music fans say they now attend more concerts.

“These findings demonstrate that real music fans — and today’s music tastemakers —
are online,” said DiMA Executive Director Jonathan Potter. “This makes the 2006 holiday sales jump in music devices and sound recordings exponentially more
important to artists, songwriters, producers and music publishers, as online music’s impact extends way beyond immediate revenues. Consumers of innovative online music
services are reviving the music economy as they enjoy more music and more new music
in every way possible, and most importantly, as they introduce their friends to the
music and online services they enjoy.”

The survey reports that about half of digital music fans are spending more than $200
per year on music, and nearly 30 percent are spending more than $300. “Prior to the digital age, someone who purchased six CDs per year — valued at just over $100 —
was considered a significant music consumer,” said 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

The survey was conducted online by InsightExpress. 1008 survey participants were
randomly recruited over a 5 day period and according to targeted sampling guidelines. The confidence level is 95%.

The Digital Media Association (DiMA) is a national trade organization devoted
primarily to the online audio and video industries, and more generally to
commercially innovative digital media opportunities.

image courtesy of Apple.