While streaming is especially popular with younger consumers, downloading music through services like iTunes is still a prominent way to listen to music, according to research by AYTM. AYTM’s survey indicated that 37% of US internet users used free music streaming services like Pandora in October. Moreover, 32% paid to download music through a music service like iTunes. Only about 9% paid for a music streaming service like Spotify on a subscription basis that month.
Gerd comments: it’s not rocket-science: cherry picking songs on iTunes feels good to some people because it’s only a $ £ € every now and then, but committing to a monthly fee on Spotify is totally different ( I do, and love it). Neither one will really get EVERY music fan engaged. The solution: Bundle Spotify et al into ISPs, operators, etc, make it ‘feel like free’ ie totally painless for users, then upsell to next levels such as HD, more offline storage, fan clubs, live concert streams etc. Music industry guys: you can’t have the cake and eat it – time to wake up.