JupiterResearch Forecasts That

Digital Music Spending in the U.S.

will Reach $2.5 billion in 2011

NEW YORK -- JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, forecasts that digital music spending in the US will reach $2.5 billion in 2011.

Detailed in a new report, "US Music Forecast, 2006 - 2001," digital download spending will grow at a 16 percent rate compounded annually over the next five years, while the smaller subscription service business will grow at a 32 percent rate."

"Strong hints of digital substitution - consumers buying digitally instead of buying CDs - are finally appearing among early digital music users," said David Card, Vice President and Senior Analyst at JupiterResearch. "Last year we witnessed downloads growing over 30 percent, to over $800 million and subscription services grew 14 percent, to over $185 million.

In addition, per the IFPI (International Federation of Phonographic Industry), global digital music trade revenues reached a staggering US$4.2 billion, up 12% in 2009.

Per the IFPI’s recent report “More than a quarter of all recorded music industry revenues worldwide are now coming from digital channels, as music companies license music in partnership with ISPs and mobile operators, subscription services, streaming sites and hundreds of download stores,” it says, going on:

“Sales of music downloads, the dominant revenue stream in digital music, are seeing steady growth. Single track download sales increased by an estimated 10%, while digital albums rose an estimated 20% in 2009.”

Notwithstanding that growth, industry revenues remain substantially below their peak in 2004.

It is clear that there is a need for a new method of selling music...a sort of "new music store" to take the industry forward and give consumers a new and exciting method to enjoy this age old passion.

Just in case you missed it...IF Music is more than ready for this adventure! Thanks so much for joining us!!