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: Don't let looks deceive: HTC One improves the camera inside

add to favorites email to friend print save as pdf

Related Stories

Sony film mess reflects gadgets-entertainment gap

Dec 26, 2014

Sony's iconic gadgetry and the star appeal of Hollywood may have appeared to be a perfect match when the electronics giant bought Columbia Pictures in 1989. A quarter century later, it's apparent that Sony ...

Sprint accused of billing for unwanted services

Dec 17, 2014

(AP)—Federal regulators are accusing Sprint Corp. of illegally billing its wireless customers hundreds of millions of dollars in charges for text message alerts and other services that they didn't order.

Recommended for you

Twitter working with probe on online threats

1 hour ago

Twitter said Monday it was working with law enforcement officials on unspecified threats, amid reports that the social network had been targeted for blocking accounts linked to the Islamic State.

Google to offer own cellular network plan

1 hour ago

Google will soon be offering cellular network plans in a bid to bridge the gap between the realms of Internet services and mobile device software it dominates.

Personalized factory workstations

2 hours ago

Tomorrow's factory jobs will be completely different from those of today. Although they will continue to be organized around assembly stations, they will not work in rigid shifts, be subject to inflexible ...

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.