Consumers Are Willing to Pay for Online Music

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May 16, 2002
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A new study suggests that content providers and distributors may find plenty of adults willing to pay for tunes downloaded from the Internet, reports the Wall Street Journal. The study follows Napster Inc.’s dismal failure to secure funding. CEO Konrad Hilbers resigned this week after Napster failed to reach an agreement to be acquired by Bertelsmann, and approximately 70 remaining employees were given the option to quit with severance pay or take a week’s unpaid leave without it, reports Wired News.

Study findings indicate that nearly one out of three adults has either downloaded music or listened to streaming music from the Web at least once, according to Venture Strategy Partners’ Technology Behavior Index. And, of those consumers, close to a third say they download music files or listen to streaming music online often.

Of those surveyed, one in four say they would subscribe to an online music service, up from the 17 percent last August. Existing and prospective online music listeners have different views on how much they would pay for a subscription service, according to the study. However, nearly a quarter of those surveyed say they would be interested in subscribing to an online music service for a flat $16-a-month fee for up to 50 songs.

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