Jupiter Media Metrix (NASDAQ: JMXI), the global leader in Internet and new technology analysis and measurement, today reports that regardless of the current market downturn, U.S. digital music sales - via digital subscription models and single paid downloads - will generate $1.6 billion in revenue by 2006, with $1.0 billion, or nearly 63 percent, coming from subscriptions alone. Jupiter analysts and top executives from five leading music-subscription services will drill-down into the challenges of this next wave of digital music during Jupiter's Plug.In, the B-Sides teleconference on Thursday, Jan. 17, 2002 from 1:00 pm to 3:00 pm EST. On hand will be Andy Schuon, president and CEO of pressplay; Alan McGlade, president and CEO of MusicNet; James Glicker, president of FullAudio; Sean Ryan, president and CEO of Listen.com and Jim Long, CEO of Rioport.
"Digital music subscriptions have the potential to revive the flagging music industry," said Aram Sinnreich, Jupiter senior analyst. "The key to unlocking this market will be remixing the distribution chain - taking advantage of digital media's fluidity to allow labels, music sellers and technology companies to focus on what they do best. Thursday's Plug.In, the B-Sides teleconference will bring together the industry's top players for two hours to further investigate how the business models for subscription services can reach full potential."
"The music industry is evolving too quickly to restrict Plug.In to once a year," said Mike May, vice president of events for Jupiter Media Metrix. "There's simply too much demand from Jupiter clients for research and analysis on the music industry. Jupiter's Plug.In, the B-Sides helps keep the industry tuned in to new developments in online music year-round, making the discussions and networking at the upcoming July Plug.In Event that much more informative, productive and valuable."
Table A: Projected Digital Subscription Sales, 2001-2006
Year Dollars (in billions)
Growth of Subscriptions to Pit Media Against Retailers
By year-end 2003, subscriptions will be the dominant digital music product format. According to Jupiter analysts, the growth of subscriptions as a product category will open a new front in the online music wars, pitting retailers against media companies. As the product category matures, Jupiter analysts envision digital music subscriptions to look less like traditional music products and more like programmed, entertainment environments found on media sites or on TV. This intense battle for subscribers that will soon result between media companies and music retailers will fuel product innovation and lead to the $1.6 billion digital music market in 2006.
Growing Market, Growing Pains
Jupiter analysts now forecast that the online music market will grow to $5.5 billion in 2006 - up from $900 million in 2001. The economic downturn coupled with the later than anticipated launch of the online subscription music services and lower overall consumer spending on music caused Jupiter to revise its original July 2001 music forecast of $6.2 billion. Jupiter analysts believe that online music growth will be a strong catalyst to the growth for overall music sales, with the former accounting for nearly a third of total U.S. music sales in 2006.
Companies interested in purchasing the Jupiter Research Report, titled "Music Forecast 2001: Remixing the Distribution Chain for Digital Music," can call toll-free at 1-877-464-6627 or visit www.jmm.com.
Jupiter Media Metrix Plug.In
Plug.In, the B-Sides, "Subscription Services Still at the Mixing Board," is a free event. The event, which will be conducted in teleconference format, will take place on January 17, 2002 from 1:00 pm to 3:00 pm EST. To register for the free-of-charge event, please visit www.jmm.com/events and follow the link to Plug.In, the B-Sides.
Now in its 7th year, Plug.In enjoys a prestigious reputation among industry leaders. Bringing music executives from the old and new economies together with artists and analysts, this event offers spirited debate and in-depth analysis into the legal issues surrounding the digital music scene. The 2002 Plug.In Event will take place in New York City on July 8-9.
Jupiter Music Forecast Methodology
Jupiter utilizes a wide set of data-gathering tools to conduct research, including systematic polling of leading industry executives, extensive consumer surveys, extensive executive surveys, Media Metrix audience measurement data, AdRelevance online advertising metrics and a rigorous approach to building market forecasting models. Jupiter analyses and forecasts are based on a number of methodologies, including close examination of analogous markets (either previous growth of new technologies or relevant off-line market case studies), consumer self-stated intentions culled from proprietary Jupiter surveying, complex market segmentation analysis, and analysis of historical trends. Additionally, all forecast assumptions are rigorously debated in a process designed to capture the collective judgment of analysts with relevant experience and perspectives on each given market. For a fuller explanation of the methodology, please visit www.jmm.com.
About Jupiter Media Metrix
Jupiter Media Metrix is the global leader in Internet and new technology analysis and measurement. The Company delivers innovative and comprehensive Internet measurement, analysis and events to provide businesses with unmatched global resources for understanding and profiting from the Internet. Jupiter Media Metrix brings together world-class, innovative and market-leading products, services, research methodologies and people. Jupiter Media Metrix services include Media Metrix, AdRelevance, Jupiter Research and Site Measurement. The Company is headquartered in New York City and operates worldwide, across the Americas, Asia Pacific and Europe (as Jupiter MMXI). Visit www.jmm.com for more information.