The simple version is that physical is going digital, and digital is going towards access. The real version, however, seems to be infinitely more complicated. According to a UK-based study just presented by eMusic and the Association of Independent Music (AIM), a massive 80 percent of British consumers still buy physical stuff like CDs and vinyl. And, one of the top reasons is the security that ownership offers.
In other words, it doesn't go 'poof'. Here's slide 5 from the morning presentation, which shows solid uptake on streaming services like Spotify but still-dominant positions on physical formats and downloads.

But why such a high percentage on physical? We've noticed that consumers still like tactile stuff, tangible objects, and non-thumbnail-sized artwork. But this taps into a much deeper, psychological reason for ownership: control, security, reliability. Because if music is your life partner, do you really want it to walk out that door?

But wait: Spotify is huge in the UK, people seem super-comfortable with access and non-ownership! But maybe that's just one crowd, or one aspect of a complicated music audience. Because instead of finding resistance towards streaming platforms, eMusic found that streaming offered the perfect gateway towards ownership. But an astonishing 70 percent refused to pay for streaming on its own.

The study was administered by Insight Strategy Group and involved 1,400 UK-based music purchasers 18-64.
Full Study Report.
Unfortunately we couldn't get our hands on the questionnaire itself, but the presentation does contain some of the questions.

Yves Villeneuve Wednesday, February 22, 2012

Soniquarium Muzika Wednesday, February 22, 2012
Yes, I'm in the industry. Yes I tour the world. Yes I have massive press and no I have not "Yet" one a grammy or have I been nominated in the Cat. of Electronic Music.
But, as mush as I miss the day's that felt like xmas, when receiving 100s of records, promos, white labels every month from Plastic Fantasic Uk, 8 ball records Nyc, and various other shops out of IBIZA....those days are long gone.
From carrying three record bags on tour, to pulling cases of records to the clubs... "Real,hard tangible items"...days are long gone.
If "Vinyl" were coming back, I would still be waiting for the Fedx guy showing up with 100s of promo's every week. NO MORE.
Now, I'm not saying the the consumer does not love vinyl. In fact, right now, my touring is based on two turntables and 100s of classic house hits that are pressed in plastic and oil. The crowd loves to watch and people who have never witness such feat, younger kids are amazed at the "Artist" playing an all Vinyl Set.
Yet, the first thing they do when they come to the booth, stage or where ever, the whip out their smart phone and Shazzam (Sp) to see if the track playing is out on digital release.
So, Yawnn with the Digital Music News reporting as trying to say that "CD"s and Vinyl will come back. Bull.
I have been pressing "Acidtate" or Dub Plates of my original music from Ardvark Pressing. I do not press 1000s of releases anymore because very few record stores exist. Yes, I was carried in Virgin, dead animal now. I was also carried in many small shops from Ibiza to lisbon ....from LA to NYC .... These stores no longer exist.
My sales on digital are now far more in volume than when I sold vinyl. I also do not have boxes of "Unsold" records returned to me from Watts.
So, while my music studio is lined with the great works of the past, sketched out in Oil and plastic...Digital is not only the future, its the present.
Either embrace it are end up like any other industry that did not embrace change.

wanna know more Wednesday, February 22, 2012
What do you think about Pirate Bay and its off-shore bank accounts?

But? Wednesday, February 22, 2012
But what about the people who still press vinyl or make cd's and acutally still sell them??
While also selling digital and streaming??
TV and movies are still shot on film, photographers still use film, it's an aesthetic and an option. Some bands still record onto tape not for the sound quality but for the way it changes the process of creating music.
Sure, For a DJ or anyone who enjoys dance music/12" culture these things are less relevant as the culture is less about the purchase of media and more about the experience of going out and listening.
But the other stuff isn't going away forever, never will.
Ever.

Iain Thursday, February 23, 2012
So the "younger kids" who "whip out their smart phone and Shazzam to see if the track playing is out on digital release", do they then want to download, or are they satisfied by streaming?
I think that's what might lie beneath this study. It's ownership in and of itself which has the value, not the format. Ownership which streaming doesn't convey, but which downloads do.

Soniquarium Muzika Thursday, February 23, 2012
Great questions on some of the comments. I can only speak from my end of the industry and what I am experiencing as we gear up for the WMC and ULTRA FEST in Miami.
It is correct that CDs and Vinyl will never go away. However, to make "Profit" from such in my industry is nearly impossible. If, vinyl were really coming back, the Dance Music 12" scene would be on fire...not happ'n. Also, Cd series like Global Underground, Bar Grooves, After Dark, etc that were selling inthe Millions have all but drop'd of the Face of the Earth. Every CD series is now Digital and that is a thriving enviorment, for more than physical CDs.
To the issue of Streaming. I have refused to allow any of my Labels newest content to stream. I do have some older release streaming but I Fired Ingrooves (www.ingrooves.com) and stop distribution to all Digital Stores but Itunes for all new content, starting Mid Last year. I have not or never saw a dime, or.001 cent from Streaming. Nor am I going to sell my music or the Labels music on such services.
Keep in mind, I am singed directly with Itunes...no middle man. This is a huge advantage over anyone using TuneCore, Ingrooves or any other Medium to get their content on Itunes. Digital sales for me are increasing fast and Itunes is very professional. My "Gross" or % is higher than that of one who goes with a middle man also.
So, in my world, my "Consumer" isn't looking for "Physical" ownership other than a digital Wav/Mp3 file. Shazzam'n is a way they try and find the Digital Release. My fan base is from 16 to early 50s on the more chilled releases. Even the older fans are learning to down load digital music.
Bottom line, It's pure propaganda pushed by Labels and Old School Music People who have not embraced techonolog...period...hence the Majors bleeding money left and right. Like the Proaganda Washing DC uses to brain wash the mass public, so are those in our "INDUSTRY". But they are fooling no one.
Finally, as to the issue of piracy. It is wrong. However, I spent 14 years a "Hedge Fund" trader, trading on both the CBOE floor and trading off the floor. There is a term us Traders use, called slippage. This is different than scum bag Bankers and Brokers whom I can't stand, what they call..cost of doing business.
No matter how effiecent the trading programs became...to buy or sell my order, would cost me above my asking price even on a limit order. In other words, sometimes it would cost me .001 cent to get in or out or a nickle to get in and out and never at the asking or bidding price that I wanted.
I look at Piracy in that way. Meaning is money that I "loose" in order to play the game. Do i like it no. Should people be held accountable yes. But do I stand up here and scream and cry like the 99% Liberal/Socialis in my industry? (I'm a capitalist)
No, because when one looks at the numbers, piracey is .01-.5% at most of lost revenue, if that when comparied to the over all scale of Music Bought vrs Music Sold. And I doubt the industry even knows the true number so they use their Mean and Standard Diviation to Hype the numbers to the upside, I'm sure.
It does not make theft right as it really comes down to a moral issue, which most are A more in our industry anyway. Every Business has it's "slippage" and theft. It comes down to educating the population on a "Moral" stand point of stealing from the artist or kicking in 99. cents to pay for a song. The issue of theft will never be solved in our industry, period.

Erik P Thursday, February 23, 2012
Someone hasn't been paying attention...

@hifidelics Wednesday, February 22, 2012
Well, we already knew this.

HansH Thursday, February 23, 2012
The study involved 1,400 UK-based music purchasers 18-64.
People who already purchase music. Isn't that like asking customers of McDonalds if they prefer hamburger or taco?

@Who_Is_YPP Thursday, February 23, 2012
How old are these people?

@Naked_Paris Thursday, February 23, 2012
What a perfect example of capitalism backfiring.

@davidporte Thursday, February 23, 2012
Not the least bit surprising to my mind.

@fmomboisse Thursday, February 23, 2012
les Anglais ne veulent pas payer pour du streaming, ils veulent posséder leur musique. chiffres en France?
#Hadopi

Versus Friday, February 24, 2012
There is another overlooked factor here:
Investment, or resale value.
Soft or virtual products, like downloaded and streamed music, has no resale value. If I decide I don't like the music, or no longer listen to it, it's just a loss.
Physical media, like CDs, at least retain some resale (or at least re-gift) value. This is even more true for vinyl, which can even massively increase in value over the years for desirable titles; take a look at ebay listings for original pressings of Pink Floyd, Beatles, Led Zeppelin records, for example. If the record is rare or a special limited edition, with unique design or packaging, it may eventually be worth hundreds or thousands of dollars.
Best regards,
- Versus

plug and buzz Monday, February 27, 2012
10 years ago people did want to buy on the internet because of security issues... ppl just need to get use not to own music... then the faster the streaming services will have the quality of a physical product (such as quality of sound, info, leaflet), the faster the ppl will switch from owning to accessing the music.
This study is looking into the past instead of focusing on th e future.....

Follow Us