Table of Contents

• Executive Summary
  
• Methodology
  
• Introduction
  
  • Who is Involved in This Market?
    
  • Some Music Industry Statistics
    
• Online Services and Content
  
  • Business and Revenue Models
    
  • Types of Services
    
    • Stand alone
      
      • Napster
        
      • RealNetworks
        
    • Those using online music to further other business interests
      
      • Wal-Mart
        
      • Microsoft
        
      • Yahoo
        
      • Apple
        
      • Sony
        
      • Services Bundled with Carrier/Operator
        
  • Market Drivers
    
    • Broadband
      
    • Availability of Services and Compelling Content
      
    • Consumer Awareness
      
    • Installed base of MP3 Players
      
    • Mobile Phone Industry
      
  • Industry Challenges
    
    • Differentiation
      
    • Compatibility of Formats & Ease of Use
      
    • Piracy
      
  • Consumer Perspective: Technology Adoption Panel (TAP) Survey Results and Analysis
    
    • Primary Method of Connecting to the Internet at Home
      
      • Do You Have a Home Network (Either Wired or Wireless)?
        
    • Have You Downloaded Music from the Internet?
      
      • Have you paid for it?
        
      • Who are the people who have?
        
    • What Music Service Have You Used Most Often to Purchase Music in the Last 12 Months?
      
      • Ease of Setting Up an account
        
      • Ease of Check Out
        
      • Ease of Finding What You Wanted on the Site?
        
      • Would You Use This Service Again?
        
    • What Type of Music did You Purchase Online?
      
      • Approximately How Much Did You Spend on Online Music in the Past 12 Months?
        
    • What Type of things are you interested in finding in an online store?
      
      • Rate the importance of the following criteria when choosing an online service
        
      • When you shop for music online, which of the following best illustrates your typical behavior?
        
      • Which of the following is of most interest to you in an online music store?
        
    • Which, if any, of the following do you do with the music after downloading it?
      
    • Which, if any, of the following devices do you own?
      
      • Is the MP3 player the first one you have owned?
        
      • What type of MP3 player(s) do you own?
        
      • What brand(s) of MP3 player do you own?
        
  • Are you planning to buy an MP3 player in the next 12 months?
    
    • What type of player are you most likely to buy?
      
    • What brand of player are you most likely to buy?
      
  • Would you prefer to listen to your digital music on your mobile phone or an MP3 player?
    
• Review of Service Providers
  
  • North and Latin America
    
  • Europe
    
  • Asia Pacific
    
  • Music Forecasts
    
    • Worldwide Total Market and Online Revenues
      
    • Physical Products vs. Downloads/Subscriptions
      
    • Regional
      
• Concluding Thoughts
  

List of Tables

• Table 1. Statistics of Who Has Paid For Downloaded Music (N=181)
  
• Table 2. What Music Service Have You Used Most Often to Purchase Music in the Last 12 Months? (N=181)
  
• Table 3. More Information of Respondents in Each Price Segment
  
• Table 4. What brand of player are you most likely to buy? (N=219)
  
• Table 5. Online Music Stores of North and Latin America
  
• Table 6. Online Music Stores of Europe
  
• Table 7. Online Music Stores of Europe (cont'd)
  
• Table 8. Online Music Stores of Europe (cont'd)
  
• Table 9. Online Music Stores of Asia Pacific
  
• Table 10. Total Worldwide Music Market vs. Total Online Music Market: 2004-2009 (US$ in Millions)
  
• Table 11. Physical Products vs. Downloads/Subscriptions: 2004-2009 (US$ in Millions)
  
• Table 12. Regional Distribution of Online Music Revenues: 2004-2009 (US$ in Millions)

List of Figures

• Figure 1. Worldwide Online Market Revenues (US$ in Millions)
  
• Figure 2. Worldwide Broadband Subscribers (Units in Thousands)
  
• Figure 3. Age of Respondents (N=782)
  
• Figure 4. Survey Respondent Household Income (N=782)
  
• Figure 5. Primary Method of Connecting to the Internet at Home? (N=782)
  
• Figure 6. Do You Have a Home Network? (N=782)
  
• Figure 7. Have You Downloaded Music from the Internet? (N=782)
  
• Figure 8. Ease of Setting Up an account? (N=181)
  
• Figure 9. Ease of Check Out (N=181)
  
• Figure 10. Ease of Finding What You Wanted on the Site? (N=181)
  
• Figure 11. What Type of Music did You Purchase Online? (N=181)
  
• Figure 12. Approximately How Much Did You Spend on Online Music in the Past 12 Months? (N=181)
  
• Figure 13. What Type of things are you interested in finding in an online store? (N=181)
  
• Figure 14. Importance of Given Criteria When Choosing Online Music Site (1 ="Not at all important" and 5 ="Extremely important") (N=181)
  
• Figure 15. When you shop for music online, which of the following best illustrates your typical behavior? (N=181)
  
• Figure 16. Which of the following is of most interest to you in an online music store? (N=181)
  
• Figure 17. Which, if any, of the following do you do with the music after downloading it? (N=181)
  
• Figure 18. Which, if any, of the following devices do you own? (N=782)
  
• Figure 19. Is the MP3 player the first one you have owned? (N=273)
  
• Figure 20. What type of MP3 player(s) do you own? (N=273)
  
• Figure 21. What brand(s) of MP3 player do you own? (N=273)
  
• Figure 22. Are you planning to buy an MP3 player in the next 12 months? (N=782)
  
• Figure 23. What type of player are you most likely to buy? (N=219)
  
• Figure 24. Would you prefer to listen to your digital music on your mobile phone or an MP3 player? (N=252)
  
• Figure 25. Total Worldwide Music Market vs. Total Online Music Market: 2004-2009 (US$ in Millions)
  
• Figure 26. Regional Distribution of Online Music Revenues: 2004-2009 (US$ in Millions)