The Digital Music Industry Outlook

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Datamonitor 360 has just published the “The Digital Music Industry Outlook” which forecasts that global digital music revenues will grow at a CAGR of 22.1 percent to reach $20.1bn by 2015, from $7.4bn in 2010. North America was the world’s largest market in 2010, accounting for about 42.8 percent of global revenues, followed by Asia Pacific and Western Europe.

Rapid growth in digital music sales is set to offset the further declines in physical format sales, largely driven by increasing internet and broadband penetration. Meanwhile, widespread piracy is cannibalizing sales across geographies, causing substantial losses to record companies. Trade associations, government bodies and industry stakeholders including record companies and digital intermediaries are all working to curb piracy. Record companies are adopting innovative pricing models and partnering with other players involved in the value chain at various levels including telcos, ISPs, and portable device manufacturers to increase consumer reach for legal music.

Legitimate music services including download stores, streaming services, internet radios, subscription models and online video channels are emerging as a potential alternative to piracy, allowing consumers ubiquitous access to music on multiple devices and screens.

This report provides an overview of the global digital music industry. It covers:

  • The global digital music industry’s market size, paid users, major segments, geographic segmentation, key drivers and resistors, and trends.
  • Key developed and emerging markets, with each market’s size, segments, paid users and major legitimate service providers, and industry strategies to curtail piracy.
  • Digital music value chain disruption analysis and innovative pricing models to combat piracy.
  • Profiles of the major digital music retailers and streaming music service providers.
  • The future of digital music in terms of most likely market scenarios and the impact of consumer technology meta-themes.

The full-text of the report is available on the web to members of the IESE community.