I find pleasure in downloading music to my computer and portable digital music player. In fact, I can’t recall the last time I has been at a music seller. I am a convert. I like listening to music samples on the Internet and buying only the songs that I want and not wanting to buy an entire disc where I may like only a few song tracks. This is the reason why iPods from Apple computer Inc. (AAPL) have grown exponentially in popularity to the current cult status. A companion of mine received a 30GB iPod for Christmas and trust me you’ve never seen an individual so excited.
A 30GB iPod may hold up to 7,500 CD quality songs. That is impressive. Apple is a trendsetter in my estimation. From its MAC to the iPod, Chief Executive Officer Steve Jobs has a keen knack for trends. These portable music devices have so much memory because he might expects a massive shift to CD burning and downloadable music. Apple’s iTunes Music Store is booming.
Just last week, the International Federation of the Phonographic Industry released its research into the digital music industry and the determinations were not a surprise. Just like how On-line DVD movies have dominated the video rental market, dominated by Netflix Inc. (NFLX), and pushing incumbent Blockbuster Inc. (BBI) to the sidelines, the exponential growth of the On-line music business has been on an explosive upward path.
According to the research, sales of digital music world expansive better by over 300 percent in 2005 to $1.1 billion. The research said digital music accounts for about 6 percent of total music sales, up from exceedingly little two years back.
The competition in the industry is fierce and expected to ramp up going forward. This may guide to consolidation in the industry down the road and result in lower prices. all of us may see the bigger and more established players taking out the smaller up and comers.
Besides Apple, there are a slew of On-line music website’s. Probably the most well known is Napster Inc. (NAPS). Napster reported it has over 500,000 subscribers but has yet to turn a profit and isn’t expected for the time being. But the company has minimal debt and a whopping $128 million or $2.91 per share in cash. Given that the current share price is 3.08, this implies you are paying a mere $0.17 for the company’s asset and potential. This is pretty good and enticing for speculators, but then Napster must deliver profits. Napster may be the dark horse in the digital music business.
In addition to Apple and Napster, there is also the growing Rhapsody music service from RealNetworks Inc. (RNWK) and Yahoo Music from Yahoo Inc. (YHOO).
The On-line music segment has now al most taken shape of a regularised industry. Although the demon of music piracy is still looms large but the future seems to be bright with newer ideas. But the contentious issue of On-line music sharing is refusing to die down. Music download websites are making there presence felt all over the Internet as more and more individuals are downloading music illegally. This has hit the music industry badly but now things are changing a little bit.
Indie researchers have located the fact that individuals who share music On-line also invest a lot on buying music legally. This further substantiates the locating of The Leading Question, a digital music research firm who found out that they spent four and a half times more on paid-for music downloads than average listeners ! These listeners are just crazy about songs and performances of their idols and go to any length to enrich their respective music collections by quality music!
If that means invest ing resources most of them are game for it and if that means downloading music that’s pirated (but free) from free music download websites they are not averse to it either! Such is the craze of music amongst these ‘musical fanatics’ they need to carry their favorite playlist with them all the time. Here’s where the On-line music download phenomenon comes into the picture as most of the music listeners carry a MP3 player or a MP3 music player integrated cell telephone that satiates there need to listen to music 24×7, for most of them it is there addiction.
They download the music from the free music download websites or buy it from a registered website or a portal. They are game to do just about anything to get hold of the latest chartbuster on the block or even if it is the classic Elvis or Beatles number, all one needs to do is to tap the right source. Now what’s the definition of right simply depends on the user!
