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Online Music Market Growth Expected to Surge in 2005
April 15, 2005
Thomas Mennecke
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On Wednesday, Apple's Chief Financial Officer Peter Oppenheimer announced during a conference call that iTunes Music Store had reached 350 million sales. While iTunes recognizes the growth of competitors such as "Napster to Go," Apple retains its impressive lead over other online music distributors.

"Last week we crossed the 350 million songs download milestone and despite the increased competition, our share of (the) online music market in the U.S. has remained at or above the 70% level as measured by Nielsen SoundScan," Mr. Oppenheimer said.

Today, dozens of industry sanctioned online music stores exists. Some come in the form of P2P networks such as Bitmunk, while most are centralized. The latter includes iTunes, Napster, Rhapsody, AOL Music and Yahoo Music.

Despite the persistence of free P2P networks, many continue to experiment with both file-sharing and pay services. According to a press release from In-Stat, an online research firm, online music sales will reach 1 billion dollars in 2005 - the first time to reach such heights.

In addition, In-Stat predicts that in addition to record sales, the world wide music market will grow by an impressive 134%. The increased number of music sites is forcing others to compete by either offering additional catalogs or providing "new types of digital content, such as live concerts and remixes."

Although the research found that more people are willing to purchase music online, it did note that half of all respondents admitted to not purchasing it. Indeed, as a recent story pointed out, bandwidth consumed by P2P reached record heights in 2004 and is not expected to abate in 2005.

This story is filed in these Slyck News categories
Authorized Music Store :: Other
File-Sharing/P2P Related :: Statistics/Analysis

You can read In-Stat's press release here.

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