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December 19, 2007 3:38 PM PST

NPD: Mac users saving music business

by Tom Krazit
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It's a good thing the music industry has Mac users, according to The NPD Group.

That's because according to a survey conducted by the market research firm, Mac users are more likely to pay to download music--and buy CDs--than Windows users. "There's still a cultural divide between Apple consumers and the rest of the computing world, and that's especially apparent when it comes to the way they interact with music," said Russ Crupnick, an analyst with NPD, in a press release.

The guy on the left doesn't seem to like music as much as the guy on the right, according to NPD.

(Credit: Apple)

The data says that 50 percent of all Mac users surveyed by NPD purchased at least one song during the third quarter, while only 16 percent of Windows users purchased a song from an online music store. And 32 percent of Mac users bought a CD during that same time, while just 28 percent of Windows users did so.

NPD says this means Mac users are "more active" when it comes to digital music than their PC counterparts. It also says that the data "helps debunk the myth that digital music consumers stop buying music in CD format."

So, what conclusion should we draw, then? Mac users are more honest than piracy-loving Windows users? Mac users are more satisfied with the current craptacular state of popular music than Windows users? NPD has a vested interest in keeping one of its clients happy with press releases such as this one, which basically reinforces Apple's branding as the computer company for cool creative people?

The whole "Mac users are younger/smarter/richer/better looking" argument has been going on for years, and while there is some demographic data to support parts of that debate, it seems a bit too much to assert that a "cultural divide" is responsible for the tendency of Mac users to buy music more frequently than Windows users. I thought Peter Kafka at Silicon Valley Insider made the obvious point that the survey did not: iTunes is bundled with Macs. I'm willing to accept the premise that people buy Macs with entertainment applications in mind, but does this conclusion from the press release really make sense? "Apple's growing share in the personal computing environment--and continued success with iPod sales--is a potential harbinger for the continued growth of digital music."

If Apple's Mac market share were to increase to say 20 percent--which would be about in line with market leader Hewlett-Packard's share--would that mean that all those former Windows users who didn't want to pay to download digital music would suddenly see the light and turn into online music shoppers simply because they switched to a Mac and jumped that "cultural divide?" It's not like the Windows world doesn't have options for legally purchasing and organizing music online; in fact, Apple offers the most popular one. That statement seems to be saying that the computer, not the person using it or even the songs themselves, is the thing that drives digital music sales, and I find that hard to believe.

Anyway, for the record, NPD said that Apple did not commission the study nor had anything to do with its content or conclusions. An NPD representative said "the Apple info we included in the press release consisted of just a few small nuggets in the overall report that (analysts) thought might get some press coverage during the dog days of the holidays, that's all." Fair enough, although I'm going to be really skeptical if the next report is entitled: "Survey: Mac users more likely to get dates, consistently hit jump shots."

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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This is poor journalism
by dechah December 19, 2007 4:52 PM PST
50% of the Mac userbase is a significantly smaller number than 16% of the Windows userbase. So how can the significantly smaller number of purchasers using the Mac platform be more valuable to the music industry from a revenue perspective, than the significantly higher number of Windows users?

In terms of revenues, I would take 16% of Windows users over 50% of Mac users anyday.
Reply to this comment
This is poor journalism
by screwbush December 19, 2007 5:01 PM PST
well put dechah.
READ
by mikestatic1 December 19, 2007 5:04 PM PST
The point is that they are more likely to PAY FOR THE MUSIC. Read.
View reply
What?!
by sevenalive December 19, 2007 4:57 PM PST
Mac users are smarter and better looking? Who in the hell decided that one. Think about it, PC Market Share is around 90% or more. So only 10% of the population are good-looking?

And i could go on about Mac users are generally gay, and you may argue but there has been research to back that claim up. Hell look at the new mac guy, come on!
Reply to this comment
Duh
by mikestatic1 December 19, 2007 5:06 PM PST
I use a Mac, and I'm not gay. I likely have more money than the average PC user, so that one is probably true.
Really? C'mon
by TaintDeli December 19, 2007 5:05 PM PST
I don't think anyone will argue that Apple's base is predominantly younger people (perhaps purchasing a Mac to look 'hip'?) and younger people actively purchase more music.

Aside from that, Mac is the 'easy' computer, right? People want it because "it just works." I don't think these are the type of people that can figure out 'other' ways of getting music on their computer. Why go through the hassle of ripping a CD, or for that matter figuring out how to use BitTorrent, when you can just buy it from iTunes with one click?
Reply to this comment
Not really
by AngieSu December 20, 2007 9:26 AM PST
Many of the PC users I know have stated that they don't like Mac because it's not "user friendly." In fact, the Mac OS comes with more developer software standard than any Windows system I've ever seen.

Also, considering that a base Mac has a tendency to cost much more than a base PC, one could conclude that the demographic that buys Macs has a larger income. With a larger income at their disposal, the need or desire to pirate music is greatly diminished.

and looking "hip" has little to no bearing on why a person would shell out $1000+ for a base computer. If a "young person" really wanted to look "hip" & are willing to spend that kind of money, there are many other things they could buy and many more of them for the same cost.
Drawing a lot of bad conclusions
by M C December 19, 2007 5:08 PM PST
This post makes me sad.

Really, the stats are what they are: "Mac people," for better or worse, support the creative process. They're more likely to be college students, who buy (yes, buy) more music than others and are more likely to ignore "the craptacular state of popular music" in favor of the bands you fear because Pitchfork likes 'em. Yes, there are more "creative types" too.

And as much as you might want to refuse to believe it, this is pretty much all a truism, known for decades now.

As much as it might make for the digital equivalent of column inches, buying a Mac isn't going to cause a magic wand to wave and turn you into a 21-year-old who likes Spoon and The Arcade Fire (or even Radiohead).

What it MAY do is give you a piece of bundled, free software that lets you easily sample millions of songs at your whim, enables you either instantly buy or seek out on CD as little or as much of what you personally deem to be worthy of your cash. That might be a factor.

But in the end, it simply is what it is. There's no "saving" going on (as much as you like to put words in NPD's mouth, the major-label system will die). Only a difference in habits that is statistically significant and representative.

Oh well, maybe the NEXT post will be better...
Reply to this comment
The real divide is: Rent or Buy
by mbucci December 19, 2007 5:33 PM PST
Apple is not in the business of streaming music, but selling music. Years ago Steve Jobs, to differentiate Apple from Rhapsody, said "we don't rent music". Of course iTunes clients BUY music at iTunes, it is their ONLY choice. Of course Mac people BUY music, it is their ONLY choice lacking the ability to download "rented" tracks from music subscription services. While Rhapsody and Napster clients, for example, have the choice to purchase downloads too, they have the option to download DRM encoded wma tracks for replay on their PC or portable device for unlimited replays while the subscription is active, Mac people DO NOT have this choice (but do if running Windows on an Intel Mac). Aren't these obvious differences enough to account for the results? As for the psychographic spins placed by spinsters on Mac vs PC people, this has nothing to do with computers or music, but everything to do with market and is the stratagem behind the press release. Are Mac users saving the music business, as this article asks in the heading? No, music lovers are saving the music business, and who ever said the music business was in need of saving other than the record industry appealing to government legislators to protect its own bottom line? I think RIAA ought not to worry - music will never die. But Mr. Jobs, you ought to worry. After years of seeing "iPod killers" bite the dust, we are about to witness the real competitor to iTunes in this new age of DRM-free MP3s: AMAZON.
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Mac share still miniscule...
by john55440 December 19, 2007 5:45 PM PST
"If Apple's Mac market share were to increase to say 20 percent--which would be about in line with market leader Hewlett-Packard's share..."

If pigs could fly.

According to IDC, Mac's worldwide market share is in the "Others" category, behind at least five other companies. Fifth ranked Toshiba has a 4.4% worldwide market share, so Mac is somewhere lower than that.

In contrast, HP has a 19.6% worldwide share with 33% growth.

Here is the USA, the Mac's market share has "skyrocketed" all the way from (Q3-06) 5.7% to (Q3-07) 6.3%.
Reply to this comment
Yes, we are in
by Lee in San Diego December 19, 2007 6:20 PM PST
We are Mac users are in the top 10% of quality and ease of use, the
others are just the hoi poli :)
blinders.
by ballmerisanape December 19, 2007 6:20 PM PST
Stop looking behind you and start looking into the future of
computing.
The average Joe will determine the future of the personal computer
industry.. not business users. The tide is changing.. all of those
iPhones people are buying (iPhone users surpasses Windows mobil
already) will "switch" more people than you might realize.
Data
by coryschulz December 19, 2007 9:18 PM PST
There is a significant amount of data that points at the increasing interest in Apple's desktop and laptop lines. There was just an article posted the other day saying that close to a third of all people looking to buy a PC in the next couple months are looking into getting a Mac. It's true that the Mac's current market share isn't all that high, but it is rising and is looking more promising every day. Every percent they gain is another percent MS loses. I'm very optimistic for Apple. They have done much innovation and have produced some very impressive products and I think they deserve the market share. They've worked harder for it than MS ever did.
Obvious
by Riquez-001 December 19, 2007 8:20 PM PST
I don't see how Mac users can lose on this one.

I mean, you've got to be an idiot if you buy Vista right?
So 100% of Mac users already proved themselves smarter right
there.

Take 2 identically beautiful twins, stand one next to a standard
PC & one next to a slick looking Mac. Since the twins are
identical you have to base your choice on the computer,
obviously the twin standing by the Mac wins sexiness.

& since there's no bargain basement priced Mac out there,
you've got to spend a bit more on a Mac than a Cheap Dell - so
you're probably better off than those who buy a $300 PC.

So that's smarter/sexier/richer covered by default.
Reply to this comment
smarter/richer/better looking
by cnetrl December 19, 2007 9:39 PM PST
That sounds very mature so how old is this girl who wrote the article 13?.
Reply to this comment
Yeah...
by TheDudeandHis360 December 20, 2007 6:42 AM PST
But its all true.

Mac Users We Do It Better.
iTunes
by Sikosis December 19, 2007 10:50 PM PST
iTunes might come with the Mac ... but Windows Media Player comes with Windows. Just because WMP sucks, doesn't mean you have to beat up on Mac people because they have iTunes. Windows uses can have iTunes too.

If you've ever wondered why the iPod is so popular, it's not because the devices are cool (because there are other MP3 players that are cool too), it's because iTunes makes it easy to manage.
Reply to this comment
Missed point
by HukedOnFonix December 20, 2007 5:21 AM PST
There was no mention of the lack of programs available on a mac which can be used to download music. Sure you can easily get it off the web, but you can get many more songs off of the gnutella network, in which Windows users have much easier access. In my opinion, you can't judge the character of either user based on this argument unless more programs become mac friendly.
Reply to this comment
"much easier access"? That's not the reason
by rcrusoe December 20, 2007 7:06 AM PST
Trust me, if you want to pirate content you don't need Windows.
Mac and Linux users can get anything they want.

IMO, it's more their state of mind. A significant portion of
Windows users pirated their operating system (just ask
Microsoft) so it follows they would think nothing of stealing
content.

In 2005 it was reported:

According to US News and World Report, Macintosh owners buy
30% more software than their Windows counterparts. Further,
Macintosh software comprises over 18% of all software sold,
according to the Software and Information Industry Association.
In addition, the Software Publishers Association (SPA) estimates
that 16 percent of computer users are on Macs.
View reply
There are plenty of P2P programs for the Mac...
by minimalist December 21, 2007 11:54 AM PST
But a lot of the reason people buy a Mac is not because they are
ignorant of how to get those programs (or how to maintain a
windows system)... but because they just don't want all that
hassle anymore.

People often buy a Mac to simplify their lives. It would follow
that they would also prefer the simplest and most reliable way
to get music (i.e. pay and be done with it).

It is likely that the average Apple user is better off financially
(Apple definitely knows how to market to the upper middle
class's sense of taste). But there is also likely a large group of
less wealthy people who see the value in paying a little more up
front for less hassle down the road.
Reply to this comment
As a Penguin
by ethana2 December 21, 2007 1:40 PM PST
what is the probability that I boycott all copyrighted music and load up my media library using only jamendo.com?
..cause I do.
Does that mean that the year of the Linux desktop will be accompanied by a rapid drop in music sales?
iTunes doesn't even exist for our platform, save via WINE perhaps. Whose fault is that? What consequences will that have as Windows market share shrinks?
Reply to this comment
Put up with less,
by ethana2 December 21, 2007 1:53 PM PST
I say, and if Apple's going to fight two wars here, let them choose the one to loose and the one to win. Their best shot against Linux is the classic duopoly. Ignore it, don't write software for it. Keep telling people that all PC's run windows. Don't tell them what abuse of the DMCA keeps OSX locked to Apple hardware...

Besides, how would the osx vs linux ads look?
Linux: Hey, did you catch the latest xorg release?
OSX: Shut up. Go away.
Linux: You seem depressed.. cups is working out well right?
OSX: Get away from me!
Linux: Man, I hear you merged the latest kernel modifications from BSD yesterday. Smart move...
OSX: Leave me alone!
Linux: I kind of already had those features so I..
*OSX storms off*
Linux: ..just took.. the wireless drivers...
Man, if he was as smug as I am talkative, I'd hate to think how many people out there have it out for him..
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