June 7, 2005 10:27 AM PDT

Study: iTunes more popular than many P2P sites

Apple Computer's iTunes online music store is as popular as most music-swapping networks, according to a study released Tuesday.

The survey by market research firm NPD Group found that approximately 1.7 million U.S. households downloaded a song from iTunes in March. That was good enough to earn the store a second-place ranking with peer-to-peer downloading service LimeWire.

The most popular digital music service during the month, however, was P2P site WinMX, which was used by 2.1 million households to download music during the month.

"One of the music industry's questions has been, when will paid download stores compete head-to-head with free P2P download services?" Russ Crupnick, president of the NPD Group's music and movies division, said in a statement. "That question has now been answered. iTunes is more popular than nearly any P2P service."

On NPD's list of the top 10 digital music services, iTunes was ranked ahead of file-sharing companies such Kazaa and iMesh. Other paid online music services such as Napster and RealNetworks' RealPlayer store also edged onto the list.

"These (paid) digital download stores appear to have created a compelling and economically viable alternative to illegal file sharing," Crupnick said.

According to NPD, about 4 percent of Internet-enabled households in the nation used a paid music download store in March.

Most of those who prefer legal music download sites are over 30 years of age. But many younger consumers still resort to sharing files over peer-to-peer services, NPD said.

Congress passed legislation to curtail piracy on file-swapping networks in April this year. And the Supreme Court is critically analyzing file swapping and is expected to rule on its legality soon.

22 comments

Join the conversation!
Add your comment
and to think...
music companies could have been doing this 5 years ago and making a killing off of it instead of making a killing off of suing their customers.
Posted by (69 comments )
Reply Link Flag
???
Someone using a P2P site to acquire their music is not a *customer* of the music industry. They're a thief of the music industry.

I won't defend the music industry's complete lack of forsight and total stubborness when it comes to internet distribution, but music is NOT free. It's a product and distributing it on a P2P site is illegal. Their actions (suing people, etc), however short sighted, are justified.
Posted by brasten (33 comments )
Link Flag
Musicians embrace P2P as Freedom!
Hollywood is DEAD! Even though the industry fights it, modern
Peer-2-Peer music transmission has arrived. Artists may reach
the world in an international way, simply by placing their art in
the infinite stream of information known as the internet. Once
in this stream...provided there is true artistic substance to
support it...that art will flow and live forever! You may even
have had a P2P discovery of 'the adam child'! Reality states that
in the modern age...

"All music is free!"

Musician/Producer/Engineer Dan Adam (a.k.a the adam child)
lives in Los Angeles, CA where he has worked in production with
or on the recordings of such artists as Jimi Hendrix, The Rolling
Stones, Stephen Stills (CSN), Jerry Lee Lewis, Santana, Larry Dunn
(Earth Wind and Fire), Jerry Cole (Jerry Cole & his Spacemen),
Mister Mister...and with such younger acts as Puddle of Mudd,
Hoobastank, P.O.D., Rivers Cuomo (Weezer), Cold, Adema, AM
Radio, Sierra Swan, GOB, Boomkat, Crazy Town, Systematic,
Silvertide, Depswa, Blindside, Zoe Scott, 2 Cents, Aikostar, The
Anomaly Project, The Drew Hager Band, Lunatech...among
others. His work has also been heard on such movie soundtracks
as The Matrix Reloaded.

Yet...Dan no longer believes in the false rules and proclamations
of Hollywood. It is nothing but a lie. It is a shame, perhaps, that
thousands of scared record executives, day after day, deny that
their jobs face the impending doom of 'freedom of information
transmission'. But reality is reality, and artists need not fear the
eventual destruction of the system in place, which will finally
begin to alter the dominance of television and radio outlets that
such companies have wielded with narrow exclusivity.

The day is already arriving when art will crop up in a new
way...perhaps a more scattered way across the land, but that will
truly bring hope and freedom to the artists of the world. They
will no longer be driven to seek fame and fortune in hubs like
Los Angeles, New York or Nashville. They will no longer chase
that dragon of false hope, and instead will be free to make their
art in the comfort of their own homes in peaceful small towns
throughout the world!

Art will spread, art will grow. Where there is a fan base
developed...artists will travel to that location and perform for
that fan base. Income will be earned in more evenly spread
ways, unlike the current situation of having one song "pushed"
by a company to the point where it can be a gigantic, but very
temporary and fleeting source of artist income. Art and artists
will build their followings from a slower, but more stable,
method of reputation development!

There will always be music placement on tv, radio and films, but
the music chosen will begin to come more directly from what
public opinion has already raised to the surface of this great
melting-pot of art. Eventually, as with music, these other forms
of media will also become more decentralized. As the public
gains confidence that they are not dependent on a set institution
in order to express these forms of art...there will be a new dawn.

The future is brightened as the drive towards immediate 'Big
Money' can not and will not be the focus of future young artists.
The result of this will mean less greed, spiritual wandering, hard
drug addictions and generally debaucherous life styles within
the entertainment community. When the confidence of 'The
People' is established and affirmed, art will be led,
independently, from more traditional small communities that do
not have the affordability to waste themselves in the escapism
and denial that has so gripped the entertainment industry of
today. The glorification of evil will at last begin to wane, and
instead...we will once again be lifted high from the joy of true
and simple transmission of art.

Dan Adam

_the adam child

www.theadamchild.com
Posted by Dan Adam (1 comment )
Reply Link Flag
Nice SPAM
Nice SPAM Dan.
Posted by (409 comments )
Link Flag
bright shiny utopia
You're a wonderful idealist... and totally out of touch with reality.
Greed is human nature and a new distribution model will not erase it.
The late 60's saw similar optimism... but still we've ended up here - in a corporate dominated landscape of individual greed fed by the 'for profit' model.
Let's face it, P2P swapping is just another example of greed... individual greed for music without compensating anyone.

It would be nice if your vision were realized... but I'm not holding my breath.
Posted by skeptik (590 comments )
Link Flag
They should embrace it as poverty
The musicians have a right to be paid for their work. The music industry has a right to be paid for their product. Just because you can steal their music and get away with it (for now while you're alive) doesn't make it right.
Posted by lingsun (482 comments )
Link Flag
I wish people would steal your work and celebrate it.
You're a hypocrite. You wouldn't like it if others stole your work but you celebrate it when it happens to others.
Posted by lingsun (482 comments )
Link Flag
Stupid totalitarian statistics
The article gives information about the age of the people who download. This means that these statistics don't come from a technical measure of the number of the P2P users but from the answers of individuals.
Answering that you use the P2P software may lead you to prison. With this kind of statistics, you would not find 1% of people criticising the nazi or the communist regimes in Germany or the USSR.
Whatever you think of the P2P or of Steve Jobs, these statistics are not scientific at all. They are just stupid propaganda which says more about the people who produce them and publish them than about the sociological reality.
Therefore establishing, publishing and/or commenting this kind of stupid statistics is just the proof of the totalitarian nature of their authors and of the USA, since they are American.
Posted by (1 comment )
Reply Link Flag
surveys
are a recognized way to measure public opinion and use within an acceptable measure of error. Sure they can be manipulated, but what's the alternative, asking everyone? That's like drawing a 1:1 map of something.

What reason could the company have to lie about the survey? Because they're evil or is it because you're paranoid?
Posted by sanenazok (3449 comments )
Link Flag
[ please stand by while we quickly scramble for new statics...]
so...
Now that P2P is being surplanted by for profit online distribution models, what will the industry blame declining profits on?
Oh yeah, I forgot, they've already started whining about how individual CD copying is ruining their industry...

I wonder if they're really that stupid, or just unwilling to face the fact that their profits may not be the fault of teens everywhere but their business models instead?
Posted by skeptik (590 comments )
Reply Link Flag
Yeah, and don't expect cheaper...
Yeah, and don't expect cheaper downloads any time soon. ¢99 is way too expensive. But this greedy bunch want's even more...

¢25 would about right. And I think as soon as our money will start going to the artists, not (sic) this "copyright holders", we will have more and better music.
Posted by Philips (400 comments )
Link Flag
Actually...
I download most of my music legally now, the only time I don't is
when iTunes (or any other store for that matter, even hmv)
doesn't have the same artist i'm looking for. For example in the
US itunes store they released a single by Billy Corgan and this
song wasn't in the Uk store (this is not Apples fault at all, they
still provide a flawless service well worth the money) or any
where else so, since i'm a consumer why should I wait, I
downloaded it off p2p and screw the music industry for not
getting the music I want out at the same time, I will probably
buy the album but for now I don't think they deserve my money.
The same goes for the film industry. The consumer is no 1, once
you satisfy the consumer you are entitled to your profits. I'm
tired of companies taking advantage of its customers
Posted by Filip Remplakowski (91 comments )
Reply Link Flag
What is legal for P2P?
There is a whole bunch of old concert and TV footage available on P2P of great bands, much of it now could be considered to have historical value. Does anyone know if it is legal to share these type of files? Would a bootleg recording from an old concert fall into a different legal category than an old TV recording?
Posted by (61 comments )
Reply Link Flag
Sorry
Sorry to say it but thats all covered under copyright law.

The only things that can be freely used and traded are images and music in the public domain.. namely more than 50 years old.. and the media companies keep getting congress to increase the duration of a copyright.

I believe a song written today wont be in the public domain till the year 2105?

Thats if they dont increase it again in the meantime.
Posted by Fray9 (547 comments )
Link Flag
 

Join the conversation

Add your comment

The posting of advertisements, profanity, or personal attacks is prohibited. Click here to review our Terms of Use.

What's Hot

Discussions

Shared

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.