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
Related posts:
- Blogs, Banter and Backtracking…Are Artists Helping or Hurting the Cause?
- Implications of Android App Downloads Surpassing iOS For The Music Biz?
- Spotify, iTunes Expansion Helping WMG Hit Digital Music Milestones
- Analyst: Streaming Music May Already Be Hitting A Ceiling
- It’s Time For Transparency On Music Streaming Rates
Posted by Robert Andrews
on Oct 1 2012. Filed under Digital, featured.
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I’m not sure I actually believe this to be 100% accurate. I’ve spoken with many university students about how they consume music and almost all said they use Spotify and don’t really buy music anymore… When they want something on their player, they illegally download it.
Maybe Spotify is turning older people onto new music purchases, but not so sure it’s the same for the younger audience.
good