Top iPad Music Apps (a/o May 23rd):
(Paid):
1. GarageBand
2. Animoog
3. TuneIn Radio Pro
4. "Free Music Download Pro" - Downloader & Player
5. djay
(Free):
1. iheartradio for iPad
2. Pandora Radio
3. Magic Piano
4. Spotify
5. VEVO HD
Live coverage from the Digital Music Forum in
New York.
Presentation by Russ Crupnick, VP & Senior
Industry Analyst, The NPD Group.
(US Data)
Top
Takeaways, Questions, Challenges.
How to service all
segments of the music community (various demos, engagement levels among
fans)?
How to energize the market for paid digital
downloads?
How to monetize all the touchpoints - this doesn't
need to be a lot (per channel)?
Creating better linkages
between access and payment.
Assessing the damage.
2009 v 2007
24 mm less buyers
fewer CD buyers - less (-) 33 mm
% change in buyers: (-) 21%
% change $ spend/buyer: +2%
'Fundamental collision' between consumers, 'uber' v. 'under'
fans
Traditional buyers...
Gen
X and late boomers are 1/3 of industry rev (CD and paid digital)
Plus,
they respond to very traditional marketing tools: AM/FM radio,
personal recommendations, browsing in an actual store
Very
likely to buy a familiar artist.
Activist
buyers...
13-35
only 9% of the people
23%
of the revenue
Variety of formats: CDs, paid
digital, P2P, external hard drive transfers
'Not everyone grows
up to be an activist' in later life
The
Stats...
Number of paid downloaders down (35.2
mm 2008 to 34.6 mm in 2009).
A lot of the loss coming from
older consumers, who are saying, 'I'd like to try this download thing,
but give me a reason.' Better pricing and packaging needed.
Significant
drop in files downloaded via P2P sharing (% internet population
downloading at least one song).
Why the decline?
-
quality issues, spyware, viruses, competition from Myspace, Pandora,
others. - other reasons rooted in technology, 'we may be going from
P2P to other ways of sharing,' which includes transfers from external
hard drives.
And the spread in 2009?
78
million bought CDs
35 mm bough DDL (digital downloads)
72 mm listened on a video site
54 mm listened to online radio
The math on conversions...
Example: $20 from
each video music listener equals $1.5 billion "with a B"
But
discovery and cannibalization, or 'substitution effects, are
considerable...
free online radio leads to a 41 percent
increase of purchases of paid DDL.
BUT, free on-demand music
leads to 13 percent less purchases of paid DDL
The
bad news - 'more listening sometimes means more listening,' so
there's 'a lot of work on the monetization side' needed.
Top iPad Music Apps (a/o May 23rd):
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