That’s the stark warning from JupiterResearch* whose ‘European Music Consumer Survey 2005’ confirms that consumers who download music from illegal file sharing networks still outnumber those downloading from legal services by three to one. This is despite the arrival of legal music download shops like Apple’s iTunes Music Store which led to 13 million songs being legally downloaded last year.
Amongst file sharing younger consumers (34% of 15-24 year olds) many have little concept of music as a paid commodity. And of the 46% of online 15-24 year olds who use the Internet to consume music, the CD is becoming increasingly irrelevant: 40% do not consider the CD to be good value for money and 43% prefer to copy rather than buy CDs.
JupiterResearch Analyst Mark Mulligan says, ‘The Digital Youth of today are being brought up on a near limitless diet of free and disposable music from file sharing networks. When these consumers age and increase their spending power, they should become key music buying consumers. But unless the music industry can transition these consumers whilst they are young away from free consumption to paid music formats, be they digital or CDs, they may never develop music purchasing behaviour and the recording industry could suffer long-term harm.’
*JupiterResearch is an international research advisory organisation specialising in business and technology market research.