Baby boomers have pent-up demand for digital music
With some of the biggest names in online retailing, such as WalMart.com and Amazon.com, looking to compete head on with Apple Inc.’s iTunes store, retailers shouldn’t overlook a key audience of digital music buyers: baby boomers.
Today, baby boomers represent one of the most affluent groups of consumers willing to spend money on music, including digital songs, says a new report from New York consumer research firm NPD Group. The report says that more than 70% of the 76 million baby boomers in the U.S. report buying music in the past year, making it the most important buying segment for CDs and an increasingly important market for digital downloads. NPD defines boomers as those born between 1946 and 1964.
When purchasing music, more than two-thirds of boomers – 68% - purchase only CDs, but 26% purchase both digital music and CDs, a mix that will continue to grow, the report says. “While the recording industry struggles with piracy and sharing among younger consumers, there’s at least one group with the income and inclination to pay for music," says NPD Group entertainment industry analyst Russ Crupnick. "Most baby boomers are still buying only CDs, but many have also begun to add digital tracks and subscriptions to their music-buying mix."
NPD projects that improvements in available product and support for boomer buyers could yield conservatively $700 million to $1 billion in potential incremental sales of both CDs and digital downloads from baby boomers. About 40% of baby boomers report that they regularly visit music retailers, including online. “The industry would do well to keep boomers top-of-mind when it comes to the music that makes its way to retail outlets – both brick-and-mortar and online,” the report says.
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