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P2P Report. Prepared for Media Defender, Inc. A larger volume of CD sales in 2006 were lost to borrowing, rather than to P2P. How Were Lost CD Sales Replaced?. 2006.
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P2P Report Prepared for Media Defender, Inc.
A larger volume of CD sales in 2006 were lost to borrowing, rather than to P2P How Were Lost CD Sales Replaced? 2006 Digital Music Study - Mainstream Consumer Analysis: Volume and spending estimates include respondents up to the 95th volume percentile per activity Source: NPD Digital Music Study December 2006 (US Internet Pop. Age 13+)
The upward trend of both P2P and legal HH penetration continued in 2006 Downloading Activity of Internet Households*(MusicWatch Digital Dec ‘05 – Dec ‘06) *Includes use of all major à la carte stores, tethered downloads from major subscription services, and eMusic’s bundled downloads. Source: MusicWatch Digital – Dec 06
P2P Services: Number of Households Downloading From P2P P2P Downloading Households (‘000s)(MusicWatch Digital Jan ‘05 –Dec ‘06) *July 06 – Four torrent clients (Azureus, BitComet, uTorrent, and BitLord) were added to NPD’s coverage. Source: MusicWatch Digital – Dec 06
The volume of P2P songs acquired continues to increase and follow a seasonal flow Volume of Unique Songs Downloaded (‘000s)(MusicWatch Digital Jan ‘05 – Dec ‘06) Volume without additional torrent sites *July 06 – Four torrent clients (Azureus, BitComet, uTorrent, and BitLord) were added to NPD’s coverage. Source: MusicWatch Digital – Dec 06
LimeWire remains the dominant source for P2P music acquisition “Other” includes: Blubster Ares eMule Warez Shareaza eDonkey SoulSeek DC++ WinMx iMesh (classic) iMesh (6.0+) BitTorrent uTorrent (Jul ‘06) Azureus (Jul ‘06) BitComet (Jul ‘06) BitLord (Jul ‘06) P2P Downloading Households* (‘000s)(MusicWatch Digital Jul ‘06 – Dec ‘06) Other *Households may have used more than one application. Source: MusicWatch Digital – Dec 06
Consumer acknowledgement has not yet translated into decreased P2P activity P2P Users Say… Source: NPD – MusicLab Sept 06
Reasons For Downloading More From Free File-Sharing Services Why did you start or download more music from free file-sharing services? (Those who downloaded from free file-sharing services in past year) Digital Music Study - Mainstream Consumer Analysis: Volume and spending estimates include respondents up to the 95th volume percentile per activity Source: NPD Digital Music Study December 2006 (US Internet Pop. Age 13+)
As P2P volume continues to grow, the majority of consumers still purchase CDs P2P Consumers: Other Music Acquisition Activities (past year) (among the US internet population age 13+) Digital Music Study - Mainstream Consumer Analysis: Volume and spending estimates include respondents up to the 95th volume percentile per activity Source: NPD Digital Music Study December 2006 (US Internet Pop. Age 13+)
Established P2P users spend more onCDs than consumers new to P2P P2P Downloaders: Per Capita Music Spending (Past 12 Months) (Downloaded via P2P in past year) N = 171 N = 140 N = 313 CD $43 $49 $52 Paid Download $7 $8 $8 Subscription $3 $4 $8 Digital Music Study - Mainstream Consumer Analysis: Volume and spending estimates include respondents up to the 95th volume percentile per activity ** See appendix for assumptions used to estimate dollar value Source: NPD Digital Music Study December 2006 (US Internet Pop. Age 13+)
Year 2006 Year 2005 Full length CD $ 12.80 $ 13.00 CD Single $ 7.97 $ 7.02 Digital Album $ 9.99 $ 9.99 Digital Track $ 0.99 $ 0.99 *Subscription Fee $ 8.45 $ 7.80 Value Definitions • The following per-unit cost assumptions were used to calculate the per capita value. *Subscription Fee is self reported. Figure reported in table above is an average for all subscribers Source: NPD Digital Music Study December 2005 and 2006 (US Internet Pop. Age 13+)