Docstoc

The Digital Music Market Outlook

Document Sample
The Digital Music Market Outlook Powered By Docstoc
					                                                   For a clearer market perspective




             The Digital Music Market
                                  Outlook
                    Evolving business models,
              key players, new challenges and
                            the future outlook




                                   Report Price    £1495/ 2160/$2875
                                Publication date   June 2009
TECHNOLOGY
                                                                                   The Digital Music Market Outlook
                                                   Evolving business models, key players, new challenges and the future outlook




About Us
                                Business Insights' portfolio of technology management reports is designed to
                                help you make well informed and timely business decisions. We understand
                                the problems facing today's technology executives when trying to drive your
                                business forward, and appreciate the importance of accurate, up-to-date,
                                incisive product, market and company analysis.



Business Insights’ reports are authored by independent experts and contain findings acquired from dedicated
primary research. Our authors' leading positions secure them access to interview key executives and to
establish which issues will be of greatest strategic significance for the industry.

Our technology portfolio of reports can be used across a wide range of business functions to assess market
conditions and devise future strategies. The order form on the back of this brochure lists recent titles available
from the categories of CRM, Strategy, eCommerce, Information and Communications Technology and
vertical markets including Finance and Healthcare.




Report Overview

The increasing adoption of broadband and mobile technologies and the
                                                                                     Pages            130
widespread adoption of smartphones and portable music playing
devices continue to drive the digital music market. The music industry               Figures                   34
landscape is undergoing major structural changes as companies from
other industries become integrated into music distribution, and business             Tables                           32
models transform to adapt to changing market demands. Piracy remains
a major concern in the industry, with losses from ilegal downloads
running into billions of dollars.


‘The Digital Music Market Outlook: Evolving business models, key players, new challenges and the
future outlook’ is a new report published by Business Insights that analyzes the growth of the digital music
market and recent transformations to the industry structure and business models. The report examines the
growth drivers and inhibitors of the market, emerging geographies, industry challenges and the future
market outlook. It also provides detailed profiles of the leading digital music service providers including an
examination of their operations, service offerings, financials and strategic outlook.
                                                                                     The Digital Music Market Outlook
                                                     Evolving business models, key players, new challenges and the future outlook




Key Findings
     The global digital music market will grow from
     $4.81bn in 2009 to $13.74bn by 2013,
  representing a CAGR of 30%.

       The industry is characterized by rapidly
      changing structure and an evolving value
  chain. New players are entering the market for digital
  music distribution and rapidly expanding their
  revenue streams to match consumer demands.
  Various partnerships and tie-ups are emerging
  between players across the value chain.
                                                                Global digital (online and mobile) music market
                                                                forecast ($bn), 2005-2013
      Music piracy remains the most critical
      challenge that the industry is faced with.                “The two main components of digital music – online music
                                                                and mobile music – have both grown at a strong pace. Mobile
  Another major issue is that of interoperability across
                                                                music, is gaining share in the digital music market up from
  various digital music services and devices, which is          40% in 2005 to 50% in 2008. Mobile music market is forecast
  being dealt with by shifting towards DRM-free music           to grow to $9.6bn in 2013, while the online music market is
  downloads.                                                    forecast to grow to $4.1bn over the same period...”


     The global digital music market has significant
     growth potential. The relatively more developed markets include the US, Japan and western
  European countries such as the UK, France and Germany. Emerging markets that present enormous
  potential include China, India and Brazil.




Use this report to...

 • Understand the global digital music market                  • Examine the challenges facing the global
   with this report’s study of the market in terms                digital music market with this report’s study
   of product innovation and evolving market                      of the evolving business models and the
   structure.                                                     major transformations taking place in the
                                                                  market abd their impact on leading
 • Analyze the growth trends in the market to                     companies.
   predict key areas of opportunity including
   market structure, dynamics and trends in the                • Benchmark your performance against
   developed markets (US, Japan, UK, France                       leading digital music service providers by
   and Germany) and emerging markets (China,                      using the company overviews of key players in
   India and Brazil).                                             the industry, including their services,
                                                                  operational and financial performance
                                                                  indicators and strategy provided in this report.
                                                                                   The Digital Music Market Outlook
                                                   Evolving business models, key players, new challenges and the future outlook




Explore issues including...
     New players entering the market: As the industry               Consumers demand for control over TV
     envolves new players are entering the market for
  digital music distribution. Increasing competition is
  prompting the companies to respond to the changing
  customer demands and differentiate their services to
  retain their customers.

    Changing market dynamics: The availability of free
    music on the internet has prompted companies to
  adapt their business models as per the changing market
  dynamics. Ad-supported sites and social community                 Global broadband subscribers and penetration
                                                                    (m, %), 2004-2007
  websites are gaining more prominence in the industry.
                                                                    “One of the key drivers of online music growth is higher
     The growth of piracy: Piracy is a major problem for            broadband and mobile penetration. Global broadband
                                                                    subscribers reached 348.6m at the end of 2007,
     the global digital music industry. The number of illegal       corresponding to a penetration of 5.3%. In countries
   downloads has increased from 20bn in 2005 to 40bn in             with a more developed digital music market, the
   2008, corresponding to 95% of the total music                    broadband penetration level is significantly higher than
   downloaded in that year.                                         the global average, e.g., Japan 22.1%, UK 25.7% and
                                                                     US 22.3%...“

      Lack of interoperability: The inability to inter-operate
      between various digital music services and devices has been a major issue hindering the growth of the
   industry. Record labels have taken a significant step towards resolving this issue by offering DRM-free tracks
   that can play across different platforms and devices.




Discover...

• What are the current trends in the digital music           • What are the key challenges facing the industry
  industry?                                                    and how are they being dealt with?

• Which regions are more developed markets                   • Who are the leading players in the market?
  and which are the emerging areas presenting
  potential growth opportunities?                            • How do the leading companies compare in
                                                               terms of their market share, operational and
• What is the industry structure and how is it                 financial performance, service offerings and
  changing as the pattern of music consumption                 strategy?
  is changing?
                                                             • How is the industry expected to evolve and
• How are the industry players responding to                   what is the future outlook?
  recent changes in the market?
                                                                                       The Digital Music Market Outlook
                                                       Evolving business models, key players, new challenges and the future outlook




Sample Information

 Chapter 7: Key players
 Rhapsody
 Overview
 Rhapsody is a digital music service provider operated through Rhapsody America, a joint venture between
 RealNetworks and MTV Networks, a division of Viacom International (MTVN). TuneTo.com, a customized
 radio service, was the first to use a streaming audio engine designed by Tim Bratton, JP Lester, Sylvain
 Rebaud, Alexandre Brouaux, Nick Sincaglia and Dave Lampton in 1999. TuneTo.com was acquired by
 Listen.com in 2001, where it was transformed into the Rhapsody digital music service. Listen.com was
 acquired by RealNetworks in 2003.
 Rhapsody provides subscription service for on-demand music streaming on PCs, portable music players and
 mobile handsets. Rhapsody America launched an MP3 store in 2008 that allows direct purchase of
 individual tracks and complete albums without any subscription.

 Service offerings
 Rhapsody offers digital music via
 subscription-based and a-la-carte                          Figure 7.34: Rhapsody revenue ($m), 2005-2008
 download model. Its catalogue includes
 more than 7m tracks from the four major
 record labels, as well as a number of
 independent labels.
 The tracks available for streaming of music
 are DRM protected using its proprietary
 software, Rhapsody DNA. These can be
 played only as long as the user subscribes
 to Rhapsody service. They cannot be
 played after the subscription expires.
 However, the tracks downloaded on a
 pay-per-song basis are DRM-free MP3 files
 that are owned by the user and do not
                                                                                                     Business Insights
 have any restriction on how they can be
 played. Its catalogue is compatible with
 various mobile handsets and portable music players, including the iPod.
 Rhapsody America also offers jukebox software that allows consumers to manage their digital music
 collection in one application and also integrates with the Rhapsody online service. It offers the following
 plans:
 • Rhapsody Unlimited: This provides unlimited access to streaming music from any web browser for a
    monthly rental of $12.99 in the US. The tracks can be downloaded and played offline unlimited
    number of times as long as the subscription is valid. This also allows users to create and share
    playlists.
 • Rhapsody To Go: This offers all the features of Rhapsody Unlimited, with the additional benefit of
    transferring music to compatible portable music devices. This comes at a monthly rental of $14.99.
 • Rhapsody.com: This is a free service that allows users to listen to up to 25 songs in a month. This is
    supported by advertising related revenue and is primarily used as a marketing tool for the other
    services offered by Rhapsody.
                                                     -120-
                                                                                      The Digital Music Market Outlook
                                                      Evolving business models, key players, new challenges and the future outlook




Table of Contents
CHAPTER 1:INTRODUCTION                                        • IP rights protection body
• What is this report about?                                  • Physical retailers
• Methodology and definitions                                 • Digital music retailers
                                                              • Consumers
CHAPTER 2:DIGITAL MUSIC – A NEW ERA                           • A-la-carte downloads vs. subscription services
• Summary                                                     • Key emerging business models
• Global market overview                                      • Advertising supported services
• Market size and growth                                      • Artist led distribution channels
• Segmentation - online and mobile music components           • Linking with brands, merchandise and mobile games
• Digital music more popular among younger consumers          • Music access services by ISPs and mobile operators
• Growth drivers                                              • Partnerships across the value chain
• Increasing penetration of broadband and mobile              • Flexible pricing
   technologies
• Soaring sales of smartphones and portable players           CHAPTER 5:KEY CHALLENGES
• Expanding online catalogues and DRM-free strategy           • Summary
• Key trends                                                  • Introduction
• Innovative marketing drives the market forward              • Piracy – plague of the digital music industry
• Move towards DRM-free tracks                                • Depth of the problem
• Partnerships emerging across the value chain                • Piracy spans across geographies
• Artists reaching out to fans directly                       • Steps to curtail piracy
• Growing involvement of local governments and ISPs in           - Role of ISPs and government support
   controlling piracy                                            - Legal action against P2P networks
                                                                 - Initiatives by record companies
CHAPTER 3:KEY MARKETS                                         • Interoperability issues – finding an effective DRM
• Summary                                                         system
• Developed markets                                           • Determining the right price for digital music
• US
• Japan                                                       CHAPTER 6:FUTURE OUTLOOK
• UK                                                          • Summary
• France                                                      • Strong growth to continue
• Germany                                                     • Developed and emerging markets
• Emerging markets                                            • The future face of music – music to go
• China                                                       • Graduating to full-track downloads and music videos
• India                                                       • Evolution of business models
• Brazil                                                      • Subscription model is the key to the future
                                                              • Ad-supported services will become more popular
CHAPTER 4:THE VALUE CHAIN AND EVOLVING                        • Labels reaching out to consumers directly
   BUSINESS MODELS                                            • Cashing in on live music
• Summary                                                     • Capitalizing on popularity of social networks
• The virtual music value chain                               • Emergence of new business models
• Artists                                                     • Changes in the pricing mechanisms
• Record labels / production companies                        • Technology innovations and advances
                                                                                         The Digital Music Market Outlook
                                                        Evolving business models, key players, new challenges and the future outlook




Table of Contents
• MP3 player market to grow with innovations                    • Wal-Mart Music Downloads
• Technology enabling music on the go                              - Overview
• Convergence of multiple formats, devices and                     - Service offerings
   channels                                                        - Operational and financial performance
• Audio formats and quality                                        - Strategy
• Music piracy                                                  • Index
• Music piracy most rampant among younger consumers
• Collective efforts required to curtail music piracy           FIGURES
                                                                • Key players in digital music retailing

CHAPTER 7:KEY PLAYERS                                           • Global digital (online and mobile) music market

• Summary                                                          forecast ($bn), 2005-2013

• Digital music retailers                                       • Global digital platforms’ share in overall music market

• iTunes Music Store                                               (%), 2004-2008

  - Overview                                                    • Top ten countries’ split of digital music (%), 2007

  - Service offerings                                           • UK key music-related activities (% respondents)

  - Operational and financial performance                       • UK respondents in favor of free music

  - Strategy                                                    • Global broadband subscribers and penetration (m, %),

• eMusic                                                           2004-2007

  - Overview                                                    • Global mobile subscribers and penetration (bn, %),

  - Service offerings                                              2004-2008

  - Operational and financial performance                       • Global iPod sales ($bn and units), 2006-2008

  - Strategy                                                    • US digital music market forecast ($bn), 2005-2013

• Napster                                                       • US digital platforms’ share in overall music market (%),

  - Overview                                                       2005-2008

  - Service offerings                                           • US digital music market breakdown ($m), 2005-2008

  - Operational and financial performance                       • US digital music market breakdown (m), 2005-2008

  - Strategy                                                    • Japanese digital music market forecast ($m), 2005-

• Rhapsody                                                         2013

  - Overview                                                    • Japanese digital platforms’ share in overall music

  - Service offerings                                              market (%), 2005-2008

  - Operational and financial performance                       • Japanese music market share of online and mobile

  - Strategy                                                       channels (%), 2005-2008

• Amazon MP3                                                    • Japanese mobile music market breakdown ($m), 2006-

  - Overview                                                       2008

  - Service offerings                                           • Japanese mobile music market breakdown (m), 2006-

  - Operational and financial performance                          2008

  - Strategy                                                    • Japanese online music market breakdown ($m), 2006-

• 7digital                                                         2008

  - Overview                                                    • Japanese online music market breakdown (m), 2006-

  - Service offerings                                              2008

  - Operational and financial performance                       • UK digital music market forecast ($m), 2005-2013

  - Strategy                                                    • UK digital platforms’ share in overall music market (%),
                                                                                         The Digital Music Market Outlook
                                                         Evolving business models, key players, new challenges and the future outlook




Table of Contents
   2006-2008                                                     • UK digital music market forecast ($m), 2005-2013
• UK digital music market breakdown ($m), 2006-2008              • UK digital platforms’ share in overall music market (%),
• UK digital music market breakdown (m), 2006-2008                   2006-2008
• Chinese digital music market ($bn), 2006–2010                  • UK digital music market breakdown ($m), 2006-2008
• Indian mobile music market ($bn), 2006–2010                    • UK digital music market breakdown (m), 2006-2008
• The music industry value chain                                 • Internet advertising market size ($bn), 2007-2011
• Categories of digital music service providers                  • iTunes Music Store Snapshot
• Digital music sales by channel (%), 2007                       • iTunes revenue ($m), 2004-2008
• Internet advertising market size ($bn), 2007-2011              • eMusic Snapshot
• Key players in digital music retailing                         • Napster Snapshot
• iTunes revenue ($m), 2004-2008                                 • Napster revenue ($m), 2004-2008
• Napster revenue ($m), 2004-2008                                • Rhapsody Snapshot
• Rhapsody revenue ($m), 2005-2008                               • Rhapsody revenue ($m), 2005-2008
                                                                 • Amazon MP3 Snapshot
TABLES                                                           • 7digital Snapshot
• Global digital (online and mobile) music market size           • Wal-Mart Music Downloads Snapshot
   ($bn), 2005-2013
• Global digital platforms’ share in overall music market
   (%), 2004-2008
• Top ten countries’ split of digital music (%), 2007
• Global broadband subscribers and penetration (m, %),
   2004-2007
• Global mobile subscribers and penetration (bn, %),
   2004-2008
• Broadband penetration in developed markets, 2008
• US digital music market forecast ($bn), 2005-2013
• US digital platforms’ share in overall music market (%),
   2005-2008
• US digital music market breakdown ($m), 2005-2008
• US digital music market breakdown (m), 2005-2008
• Japanese digital music market forecast ($m), 2005-
   2013
• Japanese digital platforms’ share in overall music
   market (%), 2005-2008
• Japanese music market share of online and mobile
   channels (%), 2005-2008
• Japanese mobile music market breakdown ($m), 2006-
   2008
• Japanese mobile music market breakdown (m), 2006-
   2008
• Japanese online music market breakdown ($m), 2006-
   2008
• Japanese online music market breakdown (m), 2006-
   2008
                                                                                      The Digital Music Market Outlook
                                                      Evolving business models, key players, new challenges and the future outlook




Go interactive!
                                                                         Competitive dynamics of leading brands in
Full portfolio searchability
                                                                         the global cancer market, 2005-06
Search across the full structure and text of reports using
i-Reports’ fast and powerful search tool to find the exact report        “Schizophrenia and depression treatments are

sections you need with ease.

Presentation ready tables and graphics
Create bespoke presentations using i-Reports’ advanced tools
to collate and organize content. Just select and drag the tables
and graphics directly into your own documents.

Create your own report
Build a report based upon your own criteria by using the
i-Report keyword search facility and select only the report
sections that are relevant to your project.

Translate into nine major languages
View any report with a ‘side-by-side’ translation in the following
languages:

   • French              • German                 • Italian              Use our unique interactive facility to gain
                                                                         even more from our reports.
   • Portuguese          • Spanish                • Russian
                                                                         See the order form for purchase details.
   • Chinese             • Japanese               • Korean




Related titles...




    Emerging IPTV and Mobile TV                The Future of Triple-Play                    The Future Digital Home
                 Models
                                          Analyze the market conditions that         Use this report to examine the ‘digital
   Examine service offerings of major
                                         have driven the deployment of triple-        home’ market, develop successful
  vendors competing gain insight into
                                           play services, and the strategies           competitive strategies and avoid
  the future competitive landscapes of
                                             employed by leading service                  potential threats, using the
               each sector.
                                                       providers.                           comprehensive analysis.
         Published: April 2009                   Published: June 2009                         Published: May 2007
      Price: £1495/ 2160/$2875                 Price:£1495/ 2160/$2875                      Price: £995/ 1435/$1910

         For further information on any of the above titles, please e-mail marketing@globalbusinessinsights.com
                                                                                                            FAX BACK TO: +44 (0) 207 900 6688
                                                                                                                                                            or scan and e-mail to
                                                                                                                                           marketing@globalbusinessinsights.com


      I would like to order the following report...                                                    1         Company details                                                                     3
  (Please use BLOCK CAPITALS)
                                                                                                           Company name: ________________________________________________________
  ______________________________________________________
                                                                                                           EU companies (except UK) must supply VAT / BTW / MOMS / MWST / IVA / FPA number:
  ______________________________________________________
                                                                                                           _____________________________________________________________________________________________

      Hard Copy (extra £50/€75/$95)                     Interactivity (extra £50/€75/$95)
      Please allow 28 days for delivery                 Search, customize & translate content              Purchase Order Number (if required)_____________________________________



      Please select a license type:                                                                    2         Payment method                                                                     4
                                                      GB£              EUR              US$
                                                                                                           Please indicate your preferred currency:           GB£        EUR           US$
            Single User
                                                      1495            2160             2875
            (eCopy)                                                                                        Total order value is ____________________________
            Access permitted for one individual only
                                                                                                                  I will forward a check payable to Business Insights Limited.

           Site                                                                                                   Please invoice my company (please complete invoice address below)
                                                     2995            4330             5750
           License                                                                                                I would like to pay by bank transfer (email address required)
            Access permitted for every individual based at one location
                                                                                                                  Debit my credit/charge card:              Amex              Visa            Mastercard

           Company
                                                     5600            8100            10795                 Card No________________________________________________________________________
           License
            Global access for every individual member of staff at the company
                                                                                                            Expiry Date _________ / _________ Signature ______________________________
                  To ask a question about license types, email: marketing@globalbusinessinsights.com



       Communications Feedback                                                                                   Payor details                                                                      5
  Please let us know if any of the following factors influenced your purchase...
                                                                                                           Title: Mr/Mrs/Ms                            (Please use BLOCK CAPITALS)
         Email/Fax/Postal promotion                      Trade Press
         Brochure                                        My Account Manager                                First Name:                                 Last Name:
         Table of Contents                               Conference materials
         Colleague Recommendation                        Website/web search                                Email

                                                                                                           Job Title
      Recipient details (If different from Payor)
                                                                                                           Department
Title: Mr/Mrs/Ms                                (Please use BLOCK CAPITALS)
                                                                                                           Address
First Name:                                     Last Name:

Email
                                                                                                           City                                   State/Province
Job Title
                                                                                                           Country                                Post Code/ZIP
Department
                                                                                                           Tel
Address
                                                                                                           Fax
City                                       State/Province
                                                                                                           Sign here to confirm your order:
Country                                    Post Code/ZIP

Tel                                           Fax
                                                                                                           ORDERS WITHOUT A SIGNATURE CANNOT BE PROCESSED

				
Sergio Fernandes Sergio Fernandes
About