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Survey: Internet Expanding Musical Tastes, Boosting Industry

By:by Susan Butler, N.Y.
Publication: BillboardBiz
Date: Wednesday, January 3 2007
The Digital Media Assn. released a new survey today (Jan. 3) showing that digital music consumers listen to more music, purchase and listen to more new music, talk more about music and attend more concerts since they first began listening to, or purchasing music online.

The survey, conducted online by InsightExpress, randomly recruited 1,008 participants over a five-day period and according to targeted sampling guidelines. The confidence level is 95%, DiMA reports.

Nearly 60% of the participants reported that they were listening to more music since they started using an online service. They enjoyed Internet radio, subscription music services and pay-per-download music services, including AOL Radio, Yahoo! Music, iTunes, Rhapsody, Zune, Urge, Napster, Pandora, Live365 and others.

The vast majority of online music service users reported that enjoying music over the Internet expanded their musical tastes, allowing them to discover new artists and explore new music genres. About 25% reported having discovered a lot of new artists, while more than 60% of the participants surveyed said they discovered some new artists. Nearly 7 out of every 10 online music consumers were enjoying new genres of music since listening to online music services.

According to the survey, online music listening increased the participants' overall music discussion with friends and co-workers, with more than 35% now talking about music more than in previous years. More than 75% of them reported that they have recommended a particular service to a friend or co-worker.

The survey also found that 15% of the online music fans reported that since
they first began listening to -- and purchasing -- music over the Internet,
they increased their concert attendance, while 67% of them attend about the
same number of concerts.

"These findings demonstrate that real music fans - and today's music tastemakers - are online," says Jonathan Potter, DiMA executive director. "This makes the 2006 holiday sales jump in music devices and sound recordings exponentially more important to artists, songwriters, producers and music publishers, as online music's impact extends way beyond immediate revenues. Consumers of innovative online music services are reviving the music economy as they enjoy more music and more new music in every way possible, and most importantly, as they introduce their friends to the music and online services they enjoy."

The survey reports that about half of digital music fans spent more than $200 per year on music, and nearly 30% spent more than $300. "Prior to the digital age, someone who purchased six CDs per year - valued at just over $100 - was considered a significant music consumer," says Potter. "Online music consumers' spending habits, combined with what they are doing to promote and expand music enjoyment, is great for the entire music industry - artists, songwriters and producers."

Details of the survey are available at www.digmedia.org.

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