Online Music Service Sales Increase

The music industry suffered a significant loss in physical music sales in 2006, but the digital music market continued to grow, a new report has revealed.

According to the International Federation of the Phonographic Industry (IFPI), physical music shipments, such as CDs, fell by 11 percent to $17.5 billion last year, while digital shipments increased by 85 percent to $2.1 billion. Commenting on the figures, IFPI chairman John Kennedy said that the industry had hoped the loss in physical sales would have been offset by the growth in music downloads. "But while digital sales have grown as expected, physical sales have fallen by more than expected," he remarked.

The IFPI stated that digital music formats, which include those downloaded onto computers and cell phones, accounted for 11 per cent of total shipments last year. In related news, reports earlier this week suggested that Universal did not intend to renew its contract with Apple's iTunes for the online distribution of its music.

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Warner Debuts Free Music Service

It has been announced that Warner Music Group's Lala.com is to offer songs to listen to for free online.

Using the site, owners of iPods can keep their iTunes libraries online, where they will be able to be accessed from anywhere and shared with any user. Lala.com also allows users to trade CDs online for a nominal fee as well as selling tracks that can be uploaded directly onto an iPod.

Founder of Lala.com Bill Nguyen accused the studios of having "done everything they can to get people to hate music." He added that Napster, which was shut down in July 2001 after an injunction was issued against it, was the "last good thing to happen to music that people loved".

"We wondered what would happen if we built a new Napster, with one hope that if you trust the consumer and don't think they are the enemy then you won't get screwed," Mr Nguyen added. Currently Lala.com has approximately 300,000 members and charges $1 per disc for users to swap CDs among themselves.

"Music is and will always be a driving force of the Internet, states Mark Weibel, EVP of Marketing for Broadband National Inc. who operates the industries leading comparative shopping website for digital products and services. "Recently, there has been a boom in "boutique" music stores that cater to specific audiences. For example, Beatportand Bleep cater to the electronic music community. Magnatune, Amie Street, and Mindawn are other examples of sites that cater to specific audiences. "

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AT&T To Offer Free Napster To Go

Communication giant AT&T has offered its wireless and broadband Internet customers a year free access to the Napster To Go service.

From April 1st broadband subscribers that add wireless phone service, or vice versa, will be able to use the Napster service, which offers over three million songs. Currently AT&T's wireless unit, Cingular, is America's largest cell carrier, boasting in excess of 60 million subscribers.

Rick Welday, chief marketing officer of AT&T Consumer, said: "By tying Napster To Go to AT&T's robust communications network, we're turning up the volume nationwide on both consumer value and added convenience." By joining communication with entertainment, AT&T is showing that it is committed to delivering content at home and "on the go", added Mr. Welday.

AT&T has also announced that residents of Kansas City will now be able to its U-verse services. U-verse features AT&T's fiber-rich network with television and high-speed Internet services available on demand.

"Napster concludes their fiscal year 2007 with over 830,000 paid subscribers, which many believe makes them the largest on-demand music service in the industry," states Mark Weibel, EVP of Marketing for Broadband National Inc. who operates the industries leading comparative website. "This would make Napster larger than Rhapsody, and larger than all of the other remaining competitors combined."http://www2.blogger.com/img/gl.link.gif

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iTunes Most Recognizable

Apple's popular music downloading site iTunes was the most recognizable music brand among teenagers in the US in 2006, according to a new survey.

A full 66 percent of people aged 12 and over were aware of iTunes last year, according to the Tempo Digital Music Brandscape study from Ipso Insight. This number is up from the 57 per cent who knew about the site in 2005. Matt Kleinschmit, author of the Tempo study, said: "While iTunes' awareness gains in 2006 have been salient, many industry watchers had anticipated them."

Social networking site MySpace also had a good year in 2006, with recognition rising from 16 percent in 2005 to 54 percent last year. Napster was not so fortunate however, with its recognition declining from 79 percent in 2005 to 68 percent in 2006. The Tempo study surveyed 1,501 downloaders over the age of 12 from August 21st to 30th.

"Music continues to be a driving force behind the Internet," states Mark Weibel the EVP of Marketing for Broadband National who operates the leading comparative shopping website for broadband and other digital related products and services. "Due to the expansion of broadband Internet users can quickly download and start to enjoy music and videos."

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