Table of Contents
Introduction and Abbreviations
-
- Introduction
- Other relevant reports
- Definition
- Sales and unit shipment calculations
- Music products covered
- Abbreviations & Terms
- Abbreviations
- Terms
Executive Summary
-
- Lackluster sales continue
- Consumer confidence down
- Big-box chains dominate, online retailing rises up
- New technologies abound
- Consumer survey—20% audiophiles, the rest are marginal participants
- The future is mobile, digital, and fragmented
Market Drivers
-
- Demographics of music purchasing and online activity
- Generations
-
- Figure 1: Population, by generation, 2000-10
- Matrix generation and Echo Boomers
- Baby Boomers
- Household income
-
- Figure 2: Frequency of purchase of packaged/physical music, by household income, November 2005
-
- Figure 3: Frequency of purchase of digital music/MP3s, by household income, November 2005
- Convenience factors move buyers online
- Computer ownership and Internet access
-
- Figure 4: U.S. broadband household projections, 2000-10
- Technological shifts: new audio device developments
- Wireless ringtones
-
- Figure 5: Mobile phone owners who have downloaded ringtones in the past 12 months, by age, spring 2005
- Enhanced CDs: DualDisc, DVD-Audio and SACD
- Portable audio sales
-
- Figure 6: Total U.S. manufacturer sales of MP3 players and other portable audio hardware, at current prices, 1999-2004
- Figure 7: Graph: Total U.S. manufacturer sales of MP3 players and other portable audio hardware, at current prices, 1999-2004
- Music to phones
- Regulatory issues and piracy—not solved
- Identification and tracking systems—potential solutions causing problems
- Changes in the retail landscape
- Ongoing decline of independent retailers
- Discount store chains dominate
- Declining appeal of the major mall
- Online shopping: convenience and selection
- Artist, fan independence
Market Size and Trends
-
- Market size
-
- Figure 8: Total U.S. retail sales of pre-recorded music, at current and constant prices, 2000-05
- Figure 9: Graph: Total U.S. retail sales of pre-recorded music, at current and constant prices, 2000-05
- Market trends
Market Segmentation
-
- Overview
-
- Figure 10: Net sales of pre-recorded music (after returns), segmented by product type, 2003 and 2005
- CDs
-
- Figure 11: Sales of pre-recorded CDs, at current and constant prices, 2000-05
- Music video
-
- Figure 12: Sales of music videos, at current and constant prices, 2000-05
- Ringtones
-
- Figure 13: Sales of ringtones, at current and constant prices, 2003-05
- Digital singles
-
- Figure 14: Sales of digital singles, at current and constant prices, 2003-05
- Digital albums
-
- Figure 15: Sales of digital albums, at current and constant prices, 2003-05
- LP/EP vinyl
-
- Figure 16: Sales of LP/EP vinyl, at current and constant prices, 2000-05
- Super Audio CD (SACD)
-
- Figure 17: Sales of SACDs, at current and constant prices, 2003-05
- Cassette
-
- Figure 18: Sales of cassettes, at current and constant prices, 2000-05
- CD single
-
- Figure 19: Sales of CD singles, at current and constant prices, 2000-05
- DVD-Audio
-
- Figure 20: Sales of DVD-Audio, at current and constant prices, 2001-05
Advertising and Promotion
-
- Introduction
- Retailer activity
- Exclusivity: One release, one store
- Listening stations everywhere
- Label activity
- The soundtrack boom
- Music scores video games
- Clothing retailers: wearing the music
- CD premiums
- Corporate marketing, co-branding and music
Retail Distribution
-
- Introduction
- Distribution fights to keep up
- Mass merchandisers, bookstores, electronics stores and others
- Mass merchants
- Wal-Mart
- Target
- Kmart
- Bookstores
- Barnes & Noble
- Borders
- Electronic stores
- Best Buy
- Circuit City
- Other
- Starbucks Coffee Company
- Specialty music stores
-
- Figure 21: Number of specialty music retailers’ stores, by chain, 1993 and 2005
- Musicland Group
- Trans World Entertainment
- Hastings Entertainment
- MTS/Tower Records
- Virgin Entertainment Group, Inc.
- Online retailers
- Amazon.com
- CDNow.com
- Digital music distributors
- Other sector activity
- iTunes Music Store
- eMusic
- Napster.com
- Rhaspsody.com
- Yahoo! Music Unlimited
- Walmart.com
- MSN Music
- Musicmatch
- Virgin Digital
- BuyMusic
- Sony Connect
- DVD and CD clubs
The Consumer
-
- Introduction
- Number of CDs, tapes or albums owned
-
- Figure 22: Ownership of CDs, tapes and/or albums, November 2005
-
- Figure 23: Ownership of CDs, tapes and/or albums, by age, November 2005
-
- Figure 24: Ownership of CDs, tapes and/or albums, by household income, November 2005
-
- Figure 25: Ownership of CDs, tapes and/or albums, by race/ethnicity, November 2005
- Frequency of purchases
- Packaged/physical music such as CDs, tapes or albums
-
- Figure 26: Frequency of purchase of CDs, tapes or albums, November 2005
-
- Figure 27: Frequency of purchase of CDs, tapes or albums, by age, November 2005
-
- Figure 28: Frequency of purchase of CDs, tapes or albums, by household income, November 2005
-
- Figure 29: Frequency of purchase of CDs, tapes or albums, by race/ethnicity, November 2005
- Digital music/MP3s
-
- Figure 30: Frequency of purchase or download of digital music/MP3s, November 2005
-
- Figure 31: Frequency of purchase or download of digital music/MP3s, by age, November 2005
-
- Figure 32: Frequency of purchase or download of digital music/MP3s, by household income, November 2005
-
- Figure 33: Frequency of purchase or download of digital music/MP3s, by race/ethnicity, November 2005
- Levels of ownership of different types of music technology
-
- Figure 34: Level of ownership of different types of music technology, November 2005
-
- Figure 35: Graph: Level of ownership of different types of music technology, November 2005
-
- Figure 36: Level of ownership of different types of music technology, by age, November 2005
-
- Figure 37: Level of ownership of different types of music technology, by household income, November 2005
- Types of formats purchased/acquired
-
- Figure 38: Types of music formats purchased/acquired, November 2005
-
- Figure 39: Types of music formats purchased/acquired, by age, November 2005
-
- Figure 40: Types of music formats purchased/acquired, by household income, November 2005
-
- Figure 41: Types of music formats purchased/acquired, by race/ethnicity, November 2005
- Where respondents purchased music
-
- Figure 42: Source of purchased music, by retailer type, November 2005
-
- Figure 43: Source of purchased music, by retailer type, by age, November 2005
-
- Figure 44: Source of purchased music, by retailer type, by household income, November 2005
- From which websites do respondents download music?
-
- Figure 45: Source of downloaded music, by site, November 2005
-
- Figure 46: Source of downloaded music, by site, by age, November 2005
-
- Figure 47: Source of downloaded music, by site, by household income, November 2005
- Attitudinal consumer questions
- Music and buying music
-
- Figure 48: Attitudes towards music and buying music, November 2005
-
- Figure 49: Attitudes towards music and buying music, by age, November 2005
-
- Figure 50: Attitudes towards music and buying music, by household income, November 2005
- Digital music/MP3s
-
- Figure 51: Attitudes towards buying and downloading digital music/MP3s, November 2005
-
- Figure 52: Attitudes towards buying and downloading digital music/MP3s, by age, November 2005
- Summary
Future and Forecast
-
- Future trends
- More diversity for consumers equals greater choice
- Consumers will be one step ahead of industry demands
- Terrestrial radio relevancy on the decline
- Internet and satellite radios
- Artists will be considered brands
- Music will become more mobile
- Slowdown in physical music sales to continue while digital sales rise
- Retail distribution to shift further
- Market Forecast
- Pre-recorded music
-
- Figure 53: Forecast of total U.S. sales of pre-recorded music, at current and constant prices, 2005-10
-
- Figure 54: Total U.S. sales of pre-recorded music at current prices, 2000-05, and forecast for 2005-10
- Pre-recorded CDs
-
- Figure 55: Forecast of U.S. sales of pre-recorded CDs, at current and constant prices, 2005-10
- Forecast factors
Appendix: Incidence and Types Of Music Bought and Downloaded; Membership in CD and Tape Clubs
-
- Music file downloading
-
- Figure 56: Music file downloading in the last 30 days, by age, May 2004-May 2005
- Figure 57: Music file downloading in the last 30 days, by cohort categories, May 2004-May 2005
- Types of music bought
-
- Figure 58: Types of music bought in the last 12 months, May 2004-May 2005
-
- Figure 59: Types of music bought in the last 12 months, by age, May 2004-May 2005
- Type of music bought and downloaded, burned or recorded
-
- Figure 60: Types of music downloaded, burned or recorded in the last 12 months, May 2004-May 2005
- Figure 61: Types of music downloaded, burned or recorded in the last 12 months, by age, May 2004-May 2005
-
- Figure 62: Types of music downloaded, burned or recorded in the last 12 months, by race/ethnicity, May 2004-May 2005
- Membership of CD and tape clubs
-
- Figure 63: Membership of CD and tape clubs, May 2004-May 2005
- Figure 64: Membership of CD and tape clubs, by club, May 2004-May 2005
-
- Figure 65: Membership of CD and tape clubs, by club, by age, May 2004-May 2005
- How respondents joined a CD and tape club
-
- Figure 66: Membership of CD and tape clubs, how joined, May 2004-May 2005
- Figure 67: Membership of CD and tape clubs, how joined, by age, May 2004-May 2005
Appendix: Simmons cohorts
-
-
- Figure 68: Married couples cohorts
- Figure 69: Single women cohorts
- Figure 70: Single men cohorts
-
Appendix: Trade Associations
Back to top