Consumers Not Receptive to Music Subscriptions

Feb 11, 2005

Portable music services will not have a big impact this year, according to Parks Associates' new report Digital Music: Analysis and Forecasts. Respondents in the recent Parks Associates survey Global Digital Living strongly favored the single-track purchase model over a subscription when presented with both options. Roughly 40% said they were likely to buy songs one at a time, but only 8% were likely to use a subscription service.

"The market has a long way to go in promoting subscription models," said John Barrett, director of research at Parks Associates. "There is hope Microsoft's Janus technology will boost the digital music market by enabling portability and greater integration of hardware and content. However, our data show the industry needs to translate these solutions into something more tangible and desirable to consumers. At present, consumers either do not fully grasp the value of a subscription 'all-you-can-eat' service, or they simply don't want it."

According to Digital Music: Analysis and Forecasts, the industry is beginning to promote "buffet" music plans, which allow users unlimited downloads for a flat monthly fee, to compete with a la carte models such as iTunes. Technologies such as Microsoft's Janus promote this paradigm of use, although few MP3 players save for some very expensive models currently support these solutions. The report, citing both limited availability and limited enthusiasm from consumers, predicts sluggish growth for these solutions this year, but it is more bullish on the long-term prospects because hardware could be subsidized under a subscription model.

Explore further: MasterCard pay by face verification to start as pilot program

Related Stories

Review: No new Apple TV? Try Nvidia Shield instead

Jun 11, 2015

With Apple expected to further delay an update to its already outdated Apple TV, consumers should take a look at Nvidia's new Shield device to get a sense of the future of streaming media players.

Recommended for you

Solar Impulse 2 pilot becomes aviation legend

8 hours ago

At 62 years of age, Swiss Solar Impulse 2 pilot Andre Borschberg has made aviation history with a record breaking solo flight across the Pacific that he has called "an interior journey".

Facegloria: Facebook for Brazil's Evangelicals

8 hours ago

Fluffy clouds waft across a blue sky as you log in and while you chat with friends, Gospel music rings out: welcome to Facegloria, the social network for Brazilian Evangelicals.

Mexico City proposes regulations for Uber

8 hours ago

Mexico City is proposing regulations that would allow Uber and other smartphone-based ride-sharing apps to operate, while requiring drivers and cars to be registered, the city's Office of Legal and Legislative Studies said ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.