Online music sales languish, Jupiter reports
Once thought as the primo use of the web, music sales and downloading are going nowhere this year, Jupitermedia Corp. reported today at its Plug.IN Conference & Expo in New York. Online CD sales will remain flat in 2003, at $750 million and digital downloading of music will amount to only $80 million, said Jupiter Research senior analyst Lee Black. "The industry is suffering from competition for entertainment dollars, changing demographics, the end of the CD upgrade cycle and piracy," Black said.
Only 17% of online adults say that they`ve cut back on their file-sharing due to fear of legal consequences, according to the Jupiter survey.
However, Jupiter expects the market to improve over the next five years, with sales tripling to $3.3 billion in 2008, 26% of U.S. music spending.
It`s not much better in Europe. "Europe`s online music market has been stuck in the starting blocks for the last few years, but the tide is finally beginning to turn," said Jupiter Research senior analyst Mark Mulligan. "EMI`s decision to make most of its catalog available online is an eye-opener, and while consumer demand remains low and file sharing rampant, the foundation is now falling into place for Europe`s legitimate online music market," Mulligan said.
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