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Analyst: subscription music services to dominate

updated 08:25 am EDT, Wed May 18, 2005

Subscription music

While Apple's iTunes has attracted a 70 percent market share by selling individual downloads of songs and albums, changing market conditions will make subscription-based music services the dominant model for selling online music in the future, a research analyst claims. Strategy Analytics is the latest research and consulting firm to weigh in on the online music debate, stating, "The retail download model popularized by iTunes is costly and inefficient." Martin Olausson, Senior Analyst with the company's Broadband Media & Communications service, said, "As the online music market matures, most consumers will place greater value on having access to a wide range of music instead of purchasing a smaller number of songs." Merrill Lynch believes that Yahoo's entry into the increasingly crowded digital music space may push Apple to offer later this year.

by MacNN Staff



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