Research indications show that iPods & iTunes markets reach saturation point, even among youth targets:
NPD Survey among US teenagers points out a radical shift in music consumption habits:
- U.S. teenagers bought 19% less music in 2008.
- Downloads from P2P networks fell 6% in 2008.
- 52% of teens listened to online radio in 2008, up from 34% from 2007. Almost half of teens (46%) used social-networking sites to download or stream music, an increase from 26% in 2007.
- 54% of teens who heard a song they liked on MySpace were likely to return to the site to hear the track again, compared with 1% who said they bought it through Amazon, the digital music seller for MySpace.
Piper Jaffray’s 17th bi-annual teen survey supports the saturation theory:
- Teen iPod ownership is up at 86% from 84% in fall 08.
- 60% of the teens acquire tunes via P2P networks
- 97% buys music online through iTunes Store, up from 93% six months ago.
While IPhone’s application store can serve as a new distribution channel – according to 148Apps, as for today – among over 40,000 applications on the App Store only 1,200 of them — are music related.
Will Apple seek new music related markets or search for other popular public interests?