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Online Music Downloading Declines in 2003 – MetaFacts TUPdate #031013
Dan Ness, Principal Analyst, MetaFacts, October 13, 2003
 
 
While Apple Computer Inc. will certainly draw lots of attention when it opens its online music store, iTunes, to Microsoft Corp.'s Windows-based computers later this week, newly released research from MetaFacts, Inc. indicates home PC’s connected to the Internet are being used far less for downloading music than before. The data behind this trend is based on a survey of 11,175 respondents to the 2003 edition of Technology User Profile.

Overall, when asked about online/Internet behavior in the home within the past 30 days, downloading music or listening to streaming audio/video declined 18.5% from the previous year (29.7 in 2002 vs. 24.2% in 2003). Similarly, the overall number of PCs used for downloading music or listening to streaming audio/video also declined. In 2002 almost 23 million PCs were used for this activity within the past 30 days, while in 2003 that number dropped to 20.3 million PCs, an 11% decline.

One key segment of the market for the online music community is teenagers. For this critical group, those home PC users between the ages of 13-19 years old, the decline was less severe with 5.8% decrease from 2002 to 2003. However the overall number of PCs used for downloading music or listening to streaming audio/video by teenagers declined significantly. For users within this age group in 2002, almost 8.7 million PCs were used for this activity within the past 30 days, while in 2003 that number dropped to 7 million PCs, a nearly 20% year-to-year decline.  

 
  2002 2003 year/year
% of Projected Installed Home/Family PCs with Internet connection that Download Music or Listen to Streaming Audio/Video in the past month 29.7% 24.2% -18.5%
Projected Number of Installed Home/Family PCs with Internet connection that Download Music or Listen to Streaming Audio/Video in the past month, in millions 22.8 20.3 -10.9%
Source: MetaFacts, Inc. – Technology User Profile – 2003 and 2002
 
What's ahead?
Fear of legal action could be one contributing factor for the declining trend, but home users are increasingly doing more serious activities online like searching for information on health issues which increased 6.5% over the previous year (51.6% in 2002 vs. 54.9% in 2003), and shopping for products to purchase via online/Internet, with a 5.3% increase over 2002 (50.6% in 2002 vs. 53.2% in 2003).

Should the online music downloading services be concerned? With at least a dozen new services likely to enter the market over the coming months, competition for a declining user-base will be fierce.

 
Background & Methodology
Factual, decision-making information like this is only found in one place, the Technology User Profile from MetaFacts. The Technology User Profile market research information service is based on extensive primary research selected and balanced to represent the American population - including technology users and non-technology users. Drawn from more than 10,000 surveys per year reporting on over 250 questions, it is the most comprehensive total market technology study available. TUPdates are brief summaries of information contained in the Technology User Profile.
 

Links to PDF Document

For a PDF copy of this TUPdate, please follow this link to the full document..
 
Other Resources
Current Technology User Profile subscribers may be interested in the following links with related, more detailed or updated information:

Online/Internet Activities-TUP 2003 Annual Edition (Excel)

Online/Internet Activities-TUP 2003 Annual Edition (pdf)

Online/Internet Activities-TUP 2002 Annual Edition (Excel)

Online/Internet Activities-TUP 2002 Annual Edition (pdf)

Online/Internet Activities-TUP 2001 Annual Edition (Excel)

Online/Internet Activities-TUP 2001 Annual Edition (pdf)

ISPs Signed Up with in the past 12 months-TUP 2003 Annual Edition (Excel)

ISPs Signed Up with in the past 12 months-TUP 2003 Annual Edition (pdf)

ISPs Signed Up with in the past 12 months-TUP 2002 Annual Edition (Excel)

ISPs Signed Up with in the past 12 months-TUP 2002 Annual Edition (pdf)

 


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