Over half of European broadband internet users are willing to pay to download music files from the web, according to a survey by Strategy Analytics. As a result, music companies are missing out on a â‚Ź650 million market opportunity, says the report.
Music downloads look set to be a driver of paid content downloads, with 63% of those surveyed ‘very’ or ‘somewhat’ interested in this area. By contrast, only 41% wanted film clips and just 32% said they are interested in playing games with other users. The willingness to pay for music downloads was nearly three times higher than the next service – listening to streamed audio of music channels.
“Music companies should strike while the iron is hot,” says David Mercer, principal analyst at Strategy Analytics. “Broadband users are clearly ready and waiting to start downloading music tracks, and to pay for the privilege. Incremental revenue opportunities await those pioneers willing to explore new business models offered by online delivery.”
The report estimates that based on respondents’ stated willingness to pay for music download services averaged across the total number of broadband households in Europe, annual revenues would amount to â‚Ź650 million.
Separate forecasts from Informa Media Group predict that global online music sales will be worth $3.9 billion by 2008 (see Unknown Downloaders Threaten Online Music Ambitions).
