(CelebrityAccess News Service) – Jupiter Research has slashed its online music forecast figures 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 percent of US music spending.
The reassessed findings were revealed July 28 at the Jupiter Plug.IN Conference & Expo
at the Crowne Plaza Hotel in New York.
Jupiter says that 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 percent 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.
And 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,"
Mulligan stated. –edited by Jane Cohen and Bob Grossweiner