| The NPD Group: Digital Music a Prime Opportunity for Music Industry, But Challenges Remain : By comparison to CD sales, in which sales of new releases are the most crucial marketing component, catalog titles that were released more than 18 months prior are a key point of focus for consumers looking to purchase digital music. Sixty-seven percent of the content acquired from P2P is catalog, versus 33 percent for new releases. Similarly 63 percent of the content acquired via paid music services were catalog titles, versus 37 percent for new releases. "Catalog sales are a much larger part of digital music than they are in the physical-music realm," Josephson said, "For some consumers the numbers suggest that digital music is filling a content void created by the limited shelf space available to brick-and-mortar CD retailers. More proof (if it was needed) of Long Tail effects in digital music distribution. As I've said before the music industry should be digitising and offering online their entire catalogue including deleted items as fast as possible. Since the capital costs were long since paid, there should be no problem with selling it at an extreme cut price. This is inventory that simply isn't available elsewhere (although it may be at Amazon) so isn't earning any money right now. |
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[ 09-Dec-04 3:47pm ] [ Music
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