Report: Marketplace Wants Ad Supported Music Download Service

There’s plenty of room in the digital music marketplace for ad supported music download services, according to a new study. The annual Digital Music Discovery & Purchase Process study – part of TEMPO, an Ipsos bi-annual study of digital music behaviors – is an in-depth examination of how US Downloaders and Streamers discover and acquire or purchase digital music.

Findings from the study indicate that ad-supported downloading is a key channel the music industry should embrace in conjunction with the efforts currently being undertaken to combat filesharing if it is to reach the largest consumer audience possible with valued music offerings.

ipsos pieMany people who fileshare would, given the choice, turn to an ad-supported service as their source of music downloads, if it were available. In fact, the study actually suggests that many so-called filesharers would prefer to have a legal way to obtain free music downloads – in the form of an ad-supported model.

There’s plenty of room in the pool for this type of business model, according to this new information. No one is doing it – at least not in a significant way. And there’s plenty of incentive – if forced to choose something other than filesharing, about two-thirds of those currently involved in it would enter the legitimate market – almost entirely on the free ad-supported side.

Reduce illegal filesharing and create revenue at the same time? Sounds like a solution the labels should be looking closely at…

If forced to choose something other than filesharing, about two-thirds of those
currently involved in it would enter the legitimate market – almost entirely on the free
ad-supported side.
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2 responses

  1. The most painful problem here is that the royalty obligations to stream the music outweigh the advertising revenues so at the end of the day – there are no profits to be had…and to make matters worse, there is no 1-stop shopping to legally secure all the licenses needed to run such a service….

  2. Well you have Spotify. That’s ad supported.
    Reverbnation did an experiment with Microsoft.
    Hmm any others?

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