Survey Finds Strong Consumer Interest in Cloud-Based iTunes Model

[MacRumors]

Market research firm NPD today announced the results of a recent survey of iTunes Store customers regarding their interest in a free or paid streaming service that would allow them to access content on a variety of devices. According to the survey, about 15% of the 50 million U.S. iTunes Store customers would be interested in a paid model, with that number nearly doubling if the service were to be free.

Between seven million and eight million iTunes users in the U.S. would have strong interest in one of the paid subscription options, according to the report. These consumers indicated a willingness to pay a minimum monthly fee of $10 -- either for streaming music or access to their personal music libraries on multiple devices. NPD estimates that there are 50 million iTunes users in the U.S. According to NPD’s music industry research, a model that offers iTunes users free access to their own music libraries would attract in the range of 13 to 15 million subscribers.

The report notes that if the consumers indicating a strong interest in a paid subscription service were to sign for such a service priced at $10 per month, it would represent a $1 billion market opportunity in the first year. The market would be expected to increase as customers purchase Internet-connected devices in greater numbers and the benefits of a cloud-based service become more clear.

Rumors of cloud-based iTunes media content have been circulating for some time now, although reports have indicated that music labels are not yet on board with the idea.

Article Link: Survey Finds Strong Consumer Interest in Cloud-Based iTunes Model

 

[saxon48]

This sounds like another way to be nickeled and dimed by the music industry.

 

[Jeremy1026]

7m to 8m people said they'd pay for it. I bet that none of those surveyed are MR members.

 

[alex.sebenski]

Why?

Simplify used to do this for a one time app fee and many others still do it. Why would I pay per month? A one time fee, I might pay, but otherwise it's a waste.

I already stream everything from my home computer over 3G, movies and audio. This would only be for people who don't know they can get the same thing with a different app for cheaper or free.

 

[RawBert]

It'll be interesting to see how they sell this idea. Pay for iTunes??? The majority will resist.

Cloud iTunes should work flawlessly and be free.

 

[Alphanumeric]

Simplify used to do this for a one time app fee and many others still do it. Why would I pay per month? A one time fee, I might pay, but otherwise it's a waste.

I already stream everything from my home computer over 3G, movies and audio This would only be for people who don't know they can get the same thing with a different app for cheaper or free.

Exactly, it would just be like using mobile me...

 

[d21mike]

Wirelessly posted (iPhone 4: Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A293 Safari/6531.22.7)

If taking about my iTunes on my computer I sync all music and pictures Nd some movies to my iPhone now and take it with me. Are they taking about people with Hugh iTunes libraries? I understand if content in the cloud I do not own.

 

[Art Mark]

what?

pay monthly to have access to media I already bought and own...ah NO. As you point out there are options already for this kind of thing. And I will never 'embrace' paying to access the material I own. Ick.

Simplify used to do this for a one time app fee and many others still do it. Why would I pay per month? A one time fee, I might pay, but otherwise it's a waste.

I already stream everything from my home computer over 3G, movies and audio. This would only be for people who don't know they can get the same thing with a different app for cheaper or free.

 

[pjarvi]

It sounds like the music industry would be getting a cut of the monthly fee, thus they are trying to charge you an ongoing fee to listen to music you already purchased. No thanks!

 

[BornAgainMac]

Consumers are interested in a lot of things. Apple has their own agenda sometimes.

 

[Alphanumeric]

If you have to pay to consume content you already paid for you failed...

 

[Sc24evr]

at&t is going to LOVE this especially with the new data caps KA-CHING!

 

[iPoodOverZune]

If you have to pay to consume content you already paid for, you blew it...

---Steve Jobs

There. fixed it for you.

 

[H. Flower]

No

Just, no.





The 50 million customers didn't understand the proposition.

 

[nd572]

Why would I pay for it, why would I wait for it, the service is already available...listen.groovehsark.com

 

[room237]

Simplify used to do this for a one time app fee and many others still do it. Why would I pay per month? A one time fee, I might pay, but otherwise it's a waste.

I already stream everything from my home computer over 3G, movies and audio. This would only be for people who don't know they can get the same thing with a different app for cheaper or free.

How are you able to stream audio and video from your home comp? Do you still use Simplify as you mentioned or is there another app that you use? Jailbroken?

 

[nunes013]

i think it should have streaming of music like lala had, also u should be able to to load your entire itunes library onto it and access it from anywhere, it will also include wireless syncing to idevices

it will be free for mobileme users but a $50 one time fee for everyone else. to go deeper into the one time fee there can be a free version, one that lets you stream music. if you want all the features its a $50 one time fee

 

[pauldy]

I'm a technical guy a go to for friends family and the like. I have a job as a profesional programer and I'm always reading my various rss feeds trying to keep up on the latest. Even I'm not sure what exactly a "cloud" based itunes service is or how it would fit into my life if at all. It seems like an outside force is pushing for this and I don't know anyone who would want it because no on knows what it really is. There are a lot of ideas what it could be, but in an era were we already have issues with cellular data and congestion I still wonder if it should be at all. I declare shenannigins on this study.

 

[Jeremy1026]

No

Just, no.





The 50 million customers didn't understand the proposition.

Apparently you didn't either.

It's estimated that there are 50 million US customers. 7 to 8 million is the estimate of those that would jump on board immediately.

 

[Yvan256]

Pay 10$ per month to view all the TV shows I want? Sign me up.
Pay 10$ per month to view all the movies I want? Sign me up.
Pay 10$ per month for listening to all the music I want? Don't count on me.

P.S.: there's no such thing as "over-the-air signals" where I live. ZERO channels.

 

[OGDaniel]

I wouldn't mind paying I guess. As long as they don't take any advice on pricing stuff like this from the geniuses over at Hulu. It'd be worth it to me, just like MobileMe is.

2 years max, everything will be cloud-based.

 

[Torajima]

These consumers indicated a willingness to pay a minimum monthly fee of $10 -- either for streaming music or access to their personal music libraries on multiple devices.

Maybe I'm missing something, but why in the hell would ANYONE be willing to pay for access to their personal music library? You bought the music, you ought to be able to play it wherever you darn well please.

 

[thetaylor13]

about 15% of the 50 million U.S. iTunes Store customers would be interested in a paid model, with that number nearly doubling if the service were to be free.

Ha. About 30% of people surveyed would be interested in a free service... I bet I could do the survey and get that percentage close to 100%

 

[PeterQVenkman]

If you have to pay to consume content you already paid for you failed...

Or you're using an Apple product. It's the future, kids! Everything is going to cost money all the time! I can't wait!

 

[ProwlingTiger]

No way I'm paying the music industry more to play music I purchased on multiple devices. My music, my decision. Whether I have 3 iPods or a hundred, I'm not paying extra.