A new report on European broadband use estimates that the region’s market for music downloads is potentially worth €650 million ($801 million).
The findings from Newton, Mass.-based Strategy Analytics are based on interviews with 700 broadband users in Britain, Germany, France and across Scandinavia. In the report, “Online Music: Europe’s Sounding Good,” 55% of respondents expressed a willingness to pay up to €15 ($18.51) per month to legitimately download music files.
According to the report, broadband users are more interested in downloading music files than other broadband entertainment services. About 63% were “very or somewhat interested” in downloading music files, while 41% wanted to stream movie clips. Only 32% were interested in playing games with other PC users. “I was a little surprised to see downloading music come in so far ahead of the pack,” says David Mercer, principal analyst at Strategy Analytics.
Mercer says the report gives a fair indication of the potential revenues in the market. “There is certainly significant money out there waiting to be spent. Broadband users are clearly ready and waiting to start downloading music tracks, and to pay for the privilege.”
James Penhune, director of the Strategy Analytics broadband media and communications service, adds, “The survey data suggests that despite the widespread use of illegal peer-to-peer music services, a significant number of today’s broadband users are ready to pay for legitimate services that deliver value through improved song selection, security and ease of use.”