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BigPond challenges iTunes with MP3 downloads!

Opinion and Analysis

BigPond says that it now offers music from the following labels: “Sony BMG, Universal Music, Warner Music and EMI, as well as leading Australian independent record labels and distributors including MGM, Inertia, Liberation, IODA, and AmpHead.”

Negotiations are also “underway with more independents”, with BigPond promising that the “MP3 catalogue will grow significantly over the coming months.” 

BigPond also says that its “new service will appeal to the seven out of ten Australians who – according to the inaugural BigPond Australian Music Consumption Survey which was released today – don't purchase music online because they are confused by the complex combination of devices, platforms and systems needed to make it work.” 

BigPond’s survey was conducted by a company called “PureProfile” from 18-23 July 2008, with a sample size of “1000 respondents across all states and territories, weighted accordingly to the population in each state.”

The inaugural BigPond Australian Music Consumption Survey found:

•    70% of Australians don’t purchase music online because they find the number of devices, platforms and systems confusing
•    Only 25% of Australians (and 20% of all retirees) currently purchase music online
•    The three primary reasons people purchase music online are the convenience (33%), flexibility to select purchase a single track or the entire album (31%), and variety of music on offer (17%)
•    More than 80% of Australians who have an MP3 player agreed that they would benefit from an Australian online MP3 store

The survey also showed state-based variation in the consumption of online music:

•    Western Australia had the highest proportion (57%) of residents preferring online music.
•    The Northern Territory had the lowest proportion (16.5%) of residents preferring online music.
•    The Australian Capital Territory had the highest proportion of residents who had occasionally or regularly purchased music online (85%)
•    Tasmanians are the least likely to purchase music online, with 55% stating they have never purchased music online.

Please read on to page 3 for comments from the heads of various record labels in Australia.



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