Apple’s iTunes Music Store could by vying for a piece of a US$3.3 billion pie by 2008, if market research firm Jupiter Research, a division of
Jupitermedia Corp., is correct. The company predicts that by that date, buying music over the Internet will account for 26 percent of U.S. music spending.
Jupiter Research senior analyst Lee Black said that the industry is suffering not only from competition for entertainment dollars, but also changing demographics, the end of the CD upgrade cycle and piracy. The study shows that only 17 percent of adults online have any fear of legal consequences as a result of their own file-sharing.
“While Apple has rekindled interest in digital downloads, total digital sales — downloads and subscriptions – will not surpass $80 million this year,” said Black.
For the moment, iTunes Music Store remains the sole domain of Mac users in the United States. If and when Apple takes the service to Europe, there are some signs that they may be well-received there. Jupiter Research senior analyst Mark Mulligan notes consumer demand for online music in Europe has remained low with rampant file sharing, he added, “… the foundation is now falling into place for Europe’s legitimate online music market.”
The report is available online to Jupiter Research clients.