"We've seen a tripling [of download sales] in the last year and we've hardly gotten started," he said. "The day is surely within our sights when digital growth outstrips physical decline and we can all compete for share of a growing pie." So far, most music services are failing to provide real competition to Apple's iTunes music service, which has been surprising to the labels, especially when they are offering subscription services.
"We thought subscriptions would be huge - they haven't been," Nicoli said. Mobile music downloads are also not proving to be popular enough yet. "We're at year zero - if that - with mobile," he said. He commented that allowing consumers to download individual tracks from albums (or the "unbundling" of music) is vital to the success of digital music. "The pessimists will say that's a problem, but our research suggest that the net effect of unbundling is a positive," he said.
Source:
The Register
Written by: James Delahunty @ 23 Jan 2006 7:57