Portable Devices And The Desire For Individual Songs Fuel Record Growth In Fee-Based Music Downloading

Portable Devices And The Desire For Individual Songs Fuel Record Growth In Fee-Based Music Downloading

Ipsos Quarterly Digital Music Study TEMPO: Keeping Pace With Digital Music Behavior Finds That Over Half of American Teen And Adult Music Downloaders Have Paid

NEW YORK, Feb. 23 /PRNewswire/ -- Following strong holiday season sales of portable MP3 players, heightened awareness of fee-based online music services and recent high-profile satellite radio content deals, American consumers continue to experiment with fee-based digital music services in record numbers, according to new findings from global marketing research firm Ipsos Insight.

New findings from TEMPO, the Ipsos Insight quarterly study of digital music behaviors, reveal that in December of 2005, over half (52%) of American downloaders aged 12 and older report having paid a fee to download music or MP3 files from the Internet, and 24% had done so in the past 30 days. These figures represent a continued increase in fee-based downloading activity over the past year (47% reported having paid a fee to download music or MP3 files from the Internet in December 2004), and a six-fold jump since December 2002. Based on the current US Census figures, approximately 25 million people have paid a fee to download music or MP3 files from the Internet - 11 million Americans in the past 30 days.

"Over the past year, the digital music market has continued to evolve into a formidable music distribution channel marked by steady growth and increasingly dynamic usage levels. Americans are indeed curious about and willing to experiment with current fee-based acquisition options," said Matt Kleinschmit, a Vice President with Ipsos Insight and author of the TEMPO research. "But for digital music service providers to continue to boost overall purchase patterns, they will have to work to continually refine and optimize their offer in an effort to encourage more repetitive consumer buying behavior."

To peruse the full release, please go to:
http://www.ipsos-na.com/news/pressrelease.cfm?id(equal sign)2984

For more information, please contact
Matt Kleinschmit
Vice President
Ipsos Insight
312.665.0600
matt.kleinschmit@ipsos-na.com

Source: Ipsos

CONTACT: Matt Kleinschmit, Vice President, Ipsos Insight,
(312) 665-0600, matt.kleinschmit@ipsos-na.com

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