The Impact Of Unlimited Music Subscription Services

October 4, 2008

Nokia and Sony Ericsson are on the verge of releasing their mobile subscription services, so the chance for unlimited subscription music services to go mainstream is on the horizon again… and as always the question arises: Which impact will “mass market” subscription services have on the other distribution channels?
Some people in the industry fear that a “mass market realistic” subscription pricing offer could cannibalize their CD sales and their digital download sales much stronger than their outcome might be through the new channel (Itunes is the best example).

But I think they are missing one important thing. Subscription services are a good and maybe the only chance to get “active file shares” back on the pay bill. The opportunity to get this very active and important music target group back, should be a bigger goal than the fear of cannibalization. Besides I don`t think the cannibalization will be to high, cause cd buyers won`t change directly to a subscription service and “a la carte” customers will maybe leave on average more money as a subscriber… but that is just my first “gut feeling”. Let`s see what some first numbers say..
There were two new survey released on this theme. One I found via Coolfer it`s a study by TNS Technology released a month ago where TNS interviewed more than 1,000 people aged 16 to 64 about unlimited mobile music services. The survey found out that when presented with an unlimited service, 45% of users would buy fewer CDs and 47% would buy fewer digital downloads from online stores. But 38% also said they would reduce their use of illegal file-sharing sites.

The other survey was released by Jupiter Research titled “Subsidized Mobile Music Subscriptions” and tries to find answers on key questions amongst others like “What impact will subsidized services have on the relatively broader European digital music market?”
For me the “keyfinding” of this survey to the question above is: “Just five percent of Europeans said they would pay for subsidized mobile music services, but more than one-half of them are file sharers.”

So, of course the question cannibalization vs. “new customers from the piracy segment” is not answered yet… the Jupiter survey makes hope that there is a chance to mobilize the piracy segment …maybe there are  more figures coming soon…

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One Response to “The Impact Of Unlimited Music Subscription Services”

  1. Michael Says:

    Did you read about the FAC
    http://www.featuredartistscoalition.com/

    They are a bit agains the subcription services…
    Cheers,
    Michael


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