Subscription based music services are the future according to Strategy Analytics

Internet Business News, May 17, 2005

INTERNET BUSINESS NEWS-(C)1995-2005 M2 COMMUNICATIONS LTD

According to a new report from Strategy Analytics, a technology research and consulting company, entitled "Online Music: Will Napster Be the Next iTunes as Subscriptions Replace Downloads?" changing market conditions will make subscription-based music services the dominant model for selling online music in the future.

According to the report, the move towards subscription music services will be driven by a combination of changing consumer expectations as well as pressure from broadband service providers and record companies.

The report also reveals that many broadband service providers prefer to offer a subscription service which generates steady monthly revenues and helps deter broadband churn. In addition, record companies are dissatisfied with the revenue they receive from low-cost download sales and will increasingly focus on alternative ways of selling music online.

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