JUPITER RESEARCH CUTS ONLINE MUSIC FORECAST, BUT MARKET WILL STILL QUADRUPLE TO $3.3 BILLION IN 2008(New York, NY - July 28, 2003) - Due to overall music industry doldrums and lackluster digital offerings, Jupiter Research, a division of Jupitermedia Corporation (Nasdaq: JUPM), today announced at the Jupiter Plug.IN Conference & Expo, taking place at the Crowne Plaza Hotel in New York City, that it has slashed the online music forecast it released earlier this year. Still, online music will grow from less than $1 billion in 2003 to $3.3 billion in 2008, when the Internet will account for 26% of U.S. music spending.
Online CD sales will remain essentially flat in 2003, at $750 million. "While Apple has rekindled interest in digital downloads, total digital sales -- downloads and subscriptions - will not surpass $80 million this year," said Jupiter Research Senior Analyst Lee Black. "The industry is suffering from competition for entertainment dollars, changing demographics, the end of the CD upgrade cycle and piracy," added Black. To date, only 17% of online adults say that they've cut back on their file-sharing due to fear of legal consequences, according to a recent Jupiter Research survey.
It's not much better in Europe. "Europe's online music market has been stuck in the starting blocks for the last few years, but the tide is finally beginning to turn," said Jupiter Research Senior Analyst Mark Mulligan. "EMI's decision to make most of its catalog available online is an eye-opener, and while consumer demand remains low and file sharing rampant, the foundation is now falling into place for Europe's legitimate online music market," stated Mulligan.
The complete findings of this report are immediately available to Jupiter Research clients online. For more information please contact Kieran Kelly at 1-800-481-1212 or [email protected].
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