Download a free copy of the white paper (pdf)
White Paper on the Impact of Downloadable Music Distribution for the Music Industry
Based on a MusicDish/MP3.com Co-Branded Survey
Tag It, June 1999
EXECUTIVE SUMMARY
» As mp3 has developed into a potential mass-market distribution
format for music media, it has raised a flurry of questions and
issues revolving around the technologies' legal, economic and
strategic implications for every segment of the industry
including artists and musicians, labels, retailers and
manufacturers to name a few. Tag It through its MusicDish
Industry Survey Series conducted a survey in collaboration with
MP3.com to attempt to address several of those issues and
questions.
» Independent artists (42%) and consumers (37%) are viewed as the
big winners from the mp3 format while major labels, distributors
and retailers are seen as losers. This reflects the growing loss
of control over music distribution by traditional players while
consumers and artists benefit from the flexibility and additional
channels made available by the Internet.
» This battle over control of music distribution is being fought
in the courts and in Congress. This lack of cooperation among
different segments of the industry is aggravating the
"us-versus-them" attitude, with 63% of the online respondents
feeling that the music industry is not responsive to their needs.
50% of respondents found the current copyright/licensing system
inadequate for the digital age while 42% believe it requires a
major overhaul. As if to accentuate the point, only 31% reported
supporting SDMI's work which is meant to specifically address
these issues.
» On the positive side, the survey and white paper clearly
illustrate the potential for a viable commercial market based on
downloadable music. While 47% of respondents are willing to pay
for singles, a more surprising 58% are willing to pay for full
length recordings. But central to the evolution of the market
will be the need for widespread consumer accessibility to
broadband connectivity.
» The popularity of portable mp3 players and emergence of a
variety of entertainment-based products in the pipeline is likely
to invigorate the demand for downloadable music and, more
importantly, may lay the groundwork for the first generation of
Internet devices.
See the online survey results.
MP3: DIGITAL MUSIC FOR THE MILLENNIUM?
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