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Global Online Music Sales to Total US$8.9 Billion By 2010, According to a New Report by Global Industry Analysts, Inc.
The growing popularity, deployment and
acceptance of digital music continues to contribute to the
substantial growth in the online music industry. The epic dimensions
of worldwide digital music industry continue to evolve as the highly
touted 3G mobile phones, portable digital music players and
broadband Internet finally see the light of day, throwing up
opportunities for further growth in the market.
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San Jose, California -February
25, 2008 -- As Internet gains popularity, a new strain of market
forces emerged to shape growth and success in the now altered
marketplace. In this regard, technology, and business models are
being transformed, and developed to complement, and foster the take
up of new services. The swift and enthusiastic uptake of downloading
music directly onto mobile phone or PC has provided a cushion
against ebbing revenues in retail music industry worldwide. The
worldwide Online Music market is expected to witness rapid growth
over the review period to reach US$8.9 billion in sales by 2010. The
extent of growth in the worldwide online music industry can be
gauzed from the fact that downloaded music revenues exceeded online
sales of physical media during 2006. The widespread availability of
legal web sites is a major factor contributing to the increased
sales in this industry. The advent of new and sophisticated
technologies and devices such as portable digital devices are
expected to bolster sales in the online music industry. Growing
penetration of Internet services and broadband among household
consumers is also expected to push up the revenue generation
capabilities of the online music industry.
Despite the strong growth, the online
music industry faces challenges in the form of illegal file swapping
services, price erosion due to intense competition and
infrastructure hurdles. Uncontrolled growth of digital industry
poses several challenges for the music industry. Extensive violation
of copyright, poor interoperability of devices and files, and
digital stream ripping are some problems faced in the online music
industry.
Online Music: A Global Strategic
Business Report
The worldwide music industry was dominated by the presence of large
labels such as Warners, Universal, EMI and Sony BMG, which captured
a large chuck of the overall industry sales. However, the advent of
Internet and online music has transformed the scenario, thereby
contributing to proliferation of diverse worldwide music. Greater
accessibility through Internet allowed independent and foreign
artists to come close and compete with well-established music
brands. The online music industry is currently witnessing increased
consolidation activity, as existing players seek to fortify their
presence through acquisitions, mergers or strategic collaborations.
To deal with the intense competition, market participants are
forging marketing alliances across diverse sectors.
The US dominates the global online music
industry, which can be attributed to high levels of Internet
penetration and availability of advanced digital technologies and
devices. Adoption of broadband services and digitization of music
with introduction of portable digital music players, represent two
of the industry's major push factors. The US generated about US$2.7
billion in sales for 2007, as stated by Global Industry Analysts,
Inc. Asia-Pacific is, however, expected to drive future growth in
the global market, increasing at a compounded annual growth rate of
48% over the forecast period. In the United States, hard format
segment is projected to dominate the market, capturing over 44%
share of the sales by 2010. The European online music market
witnessed a major turnaround in 2006 as the consumer spending
increased by more than 100% during the year. Though piracy is the
prime factor for ebbing retail music sales, replacement of shelf
space dedicated for music with DVDs, games, mobile phones and books
in major retailers also had a significant impact. one-off downloads
segment dominates sales in the Asia-Pacific region reaching US$533
million in 2007.
The report titled "Online Music: A
Global Strategic Business Report" published by Global Industry
Analysts, Inc., offers a comprehensive analysis of the industry
structure, market drivers, issues, trends and competition. The study
analyzes recent past, current and future market data and analytics
over the period 2004-2010 and long term projections (2011-2015) for
regions such as the United States, Canada, Japan, Europe,
Asia-Pacific and Rest of World.
The report reviews key players in the
global and regional online music participants including Buongiorno
Vitaminic SpA, eMusic.com Inc., iTunes, RealNetworks, Inc.,
Musicmatch, MusicNet, Inc., MTV Networks, OD2, Napster, Ecast, Inc.
and Yahoo! Music Unlimited.
For more details about this research report, please http://www.strategyr.com/Online_Music_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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For mroe information contact:
Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email: press@StrategyR.com
Web Site : www.StrategyR.com
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