2013-01-25 14:38:50 - Digital music market dominated by Apple iTunes
The global digital music market has been forecast to increase at a compound annual growth rate (CAGR) of 15%, to reach a value of nearly $22.5 billion by 2017.Subscription services are said to be in large part responsible for the growing revenues, predicted to show a compound annual growth rate (CAGR) of 46%, stemming from bundling partnerships with service providers.Key factors contributing to this market growth include the increase in initiatives to curb piracy and the increase in the adoption of cloud services.Due to the high rates of piracy, the global digital music market is losing out on a significant portion of revenue. Hence, various initiatives are being taken to curb piracy rates in order to provide growth momentum to
the market.Nearly a decade after introducing Americans to the original iTunes Music Store, Apple continues to dominate the scene for paid digital-music downloads and for all music purchases in the US.In the second quarter of 2012, iTunes boasted a 64% share of the digital music market and 29% share of all music sold at retail, which includes both digital and physical formats. The digital music market was expected to grow by approximately 10%, on a unit basis, in 2012.Amazon´s MP3 store was a distant second to iTunes, with a 16 percent share of the digital market. Google Play, eMusic, Zune Music Pass, and others each had a share of 5 percent or lower. Consumer awareness of Google Play is growing, although it is much lower than for Amazon and iTunes.UK consumers spent a total of Â£155.8 million on music in the first quarter of 2012, with 55.5%, or Â£86.5 million coming from digital music revenues. This trend is set to continue with the growth of music downloads as well as subscription and ad-funded music services.Digital music revenues received by record companies grew by 8% in 2011 to $5.2 billion, as new global markets were tapped into. In 2011 there were 3.6 billion paid music downloads, up 17% on 2010. Music distribution is relatively well-established online, compared to other entertainment industries.For more information on the digital music market, see the latest research: Digital Music MarketFollow us on Twitter @CandMResearch
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