Research: Music Streaming Helping, Not Hurting Music Downloads
Music downloads continue to grow despite the emergence of new streaming services, according to research which says that Spotify users are twice as likely to buy songs they play.
For some time now, unlimited-music services have defended themselves against the notion they cannibalise downloads by saying they actually grow the whole music revenue pie.
New research by NPD Group, seen by Digital Music News, says: ”38% of (free) Spotify users report buying a song download in the past three months, compared to 17% for non-users.”
Spotify has its own built-in download option. Previously, it fulfilled downloads through 7digital, which had counted Spotify as one of its biggest clients.
One key line in Spotify’s defence is that, the typical annual revenue take from its subscribers, $120, is way above what non-streamers are paying for downloads. It will help Spotify to use figures like NPD’s which suggest it can also turn its non-paying, ad-listening users toward paying for downloads.
Beside Spotify’s own download store, some streamers likely turn to regular channels like the iTunes Store for their downloads.
NPD Group SVP Russ Crupnick (release) reports that Apple continued to dominate US paid music downloads in Q2 2012, taking 64 percent of digital sales and 29 percent of all recorded music sales regardless of format. Read the full story at Paidcontent.org
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