When did you last buy a CD? I didn't buy one for a pretty long time and the last one I bought was from an artist I like nearly every single piece of work he creates, Pat Metheny. Is then the music business going away for a free show? Of course not, because one buys legally music on-line. Do we really?
NPD Group, a market research firm, gave us some clues recently in publishing a new report about the music industry. Here are in shorts the finding for 2007:
- 48% of all teenagers never bought a CD (38% in 2006)
- CD sold in the U.S. fell 19% from 2006
- Apple iTunes (selling only digital downloads) is now the #2 music shop in the U.S. jumping ahead Best Buy and trailing Wal-Mart
- 29 Million people bought music legally from online music stores, up from 24 Million in 2006 i.e. + 21%
You like this idea? All the music you can get for a flat fee? What about Video
And what about for FREE?
Well checkout hulu.com, all the video you can get on-line for free, because you get advertising with it. Unfortunately only in the U.S. for now.
... and what about software? What about a flat monthly fee to access a dedicated application portfolio coming out from several vendors, a bouquet of SaaS focusing on a business or personal matter (Sales, Marketing, ...).
Let's watch this e-commerce space carefully as music and videos are paving the way when it gets down to digital goods business models tsunamis.