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The Online Digital Music Market Reached an Estimated $1.1 Billion in the US

Research and Markets has announced the addition of Online Audio in the US 2006 to their offering.

This report covers sales of digital music downloads (files) and subscriptions to digital music libraries sold on the Internet. The online digital music market has increased twenty-fold in three years to an estimated $1.1 billion in 2006. While the dominance of iTunes has been critical to this growth, a number of factors, including rival digital file formats and several new entrants, may be conspiring to topple Apple from its throne. Continued growth as a whole is threatened by new technologies, which allow consumers to access music files for free.

We provide an overview of the activities of major players in this rapidly changing space and discusses which actions may have far-reaching strategic significance in the years to come. A look at the various technology platforms being pushed by each vendor reveals the efforts to break iTunes’ market share.

The online digital music market is heavily dependent on changes in technology, which continue to evolve. This report explores consumer attitudes toward music downloading (both free and paid) and quantifies usage for downloading, streaming content, podcasts, and cell-phone downloads, among other digital distribution services. The impact of age, household income, and race/ethnicity on usage are examined, identifying which demographics may need increased targeting. Our proprietary survey also examines the viability of streaming media, podcasts, and music and comedy downloads as an advertising medium, with attention paid to who is using these services and is interested in listening to ads in exchange for free content.

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