Internet Music Fans Find, Buy More

Via RAIN, word of a study done by the Digital Music Association showing that subscribers to digital music services like Rhapsody, iTunes, LastFM, Pandora and the like have a bigger appetite for music, spending upwards of $300 a year on the Internet to feed their habit. Additionally, these consumers are more varied in their choice of genres:

Across all three digital music services nearly 60 percent of consumers are listening to more music since they started using the service.

Digital music services have had a positive effect on overall music discussion with friends and co-workers, which in turn has led to music service recommendations.

More than 4 in 10 digital music service consumers are discussing music more frequently.

More than 7 in 10 have recommended a music service to others.

Listening to and purchasing music over the internet has expanded the musical taste of the vast majority of consumers by allowing them to discover new artists.

More than 6 in 10 digital music consumers have discovered some new artists while nearly 1 in 4 have discovered a lot of new artists.

Nearly 7 in 10 consumers have explored new genres of music.

What to make of this? Far from being a scourge to the recording industry, the availability of music online drives a bigger overall hunger for it. The study also showed that these consumers discuss music more with friends and co-workers, and recommend the services they use to other.

The only surprise I found was that the number of concerts these consumers attend stayed basically the same. 67 percent attend 1 to 5 a year, and their Internet habits had no impact on that number. More likely, obscenely high concert prices keep them indoors – which is good news for Mark Cuban.

Almost half of them spend more than $200 a year on music. 13 percent spend over $500.

Why does the industry try so hard to punish their biggest fans? I’d be very interested in learning how much P2P activity these same consumers engage in. My guess is it’s a pretty high number, which doesn’t change their tendency to buy music.

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