Music downloading is only beginning, Yankee Group warns
If music companies and artists think downloading of music from the Internet is a problem today, wait until broadband Internet access becomes more widespread, warns research and consulting firm The Yankee Group. 30% of teens not currently downloading music say that connection speed is a major reason while only 20% say illegality is a reason they do not currently download, according to its recently released 2003 Youth Market Survey.
"Broadband Internet access via DSL and cable, now present in nearly 20 million U.S. homes, is rapidly gaining ground on dial-up," says Tom Gramaglia, director of Internet, media, and consumer communications for the Yankee Group. "Our recent survey suggests that peer-to-peer file sharing, using software programs such as KaZaa and Morpheus, will increase substantially as the speed barrier diminishes. This is mixed news for the new online music firms such as the iTunes Music Store. Their market opportunity will certainly benefit as broadband penetration overtakes dial-up within the next 5 years, but competition with free services also will increase."
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