ZDNet took a look last week at NPD Group's annual Digital Music Study, which shows that in 2008, the number of Internet users buying digital music online rose by 8 million people, up to 36 million. Online digital music sales now make up a whopping 33% of all tracks sold (which is evident by a corresponding decline in CD sales).
Unfortunately, the slowing economy means that there are fewer total people buying music, but that doesn't necessarily mean that there are fewer people listening. Services like Pandora, Rhapsody, and various apps on social networking sites are seeing increases in listeners, according to ZDNet.
Music distributors used to focus on two questions: who is listening and what are they listening to? But now, there's a third component: where are they listening? On iPods? As background music as they surf the web on laptops? On a state-of-the-art MP3 stereo system? On satellite radio in their cars? Consumers have different demands depending on the devices they're using, so this marketplace of business models for distribution is great for consumers and device-makers alike.
As technology evolves, we'll probably see even more experimentation in music distribution models. Some of them will meet the demands of consumers, and they'll flourish, as iTunes and Pandora have. Some of them won't, and they'll fade into obscurity. That's as it should be in the digital society: companies are free to offer a range of products and services in a range of ways--and consumers pick the winners.
Unfortunately, the slowing economy means that there are fewer total people buying music, but that doesn't necessarily mean that there are fewer people listening. Services like Pandora, Rhapsody, and various apps on social networking sites are seeing increases in listeners, according to ZDNet.
Music distributors used to focus on two questions: who is listening and what are they listening to? But now, there's a third component: where are they listening? On iPods? As background music as they surf the web on laptops? On a state-of-the-art MP3 stereo system? On satellite radio in their cars? Consumers have different demands depending on the devices they're using, so this marketplace of business models for distribution is great for consumers and device-makers alike.
As technology evolves, we'll probably see even more experimentation in music distribution models. Some of them will meet the demands of consumers, and they'll flourish, as iTunes and Pandora have. Some of them won't, and they'll fade into obscurity. That's as it should be in the digital society: companies are free to offer a range of products and services in a range of ways--and consumers pick the winners.
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