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75% Of Students Prefer Downloading Music To Streaming
A recent survey of 10,000 university students by the University of Reading, found that 75% of students download music, rather than buy in stores or pay for on music-streaming sites. Despite the recent popularity of music-streaming sites such as Spotify, 75 percent said they wouldn't pay for a music-streaming service but would rather use sites such as iTunes to download and keep tracks on hard drives or MP3 players. The industry is in for a shake up as more students and teenagers are looking at pricing and sites that offer songs without copy-protection technology known as digital-rights management, or DRM. This prevents customers from being able to copy music or play the MP3 music on other devices other than Apples iPods or using iTunes player. The industry is taking note of the growing demand for cheaper downloads; one such site that has already lowered prices considerably is TunesPro.com. Launched 3 months ago, the company has reduced the cost of its tracks already, to attract the younger customers. A spokes man for TunesPro said, "We have seen a huge surge of younger people using our site as more and more of torrents and P2P files contain viruses, so our pricing must be competitive enough for the younger students with perhaps less disposable income than professionals. We keep our prices low and concentrate of making money through volume sales. Currently we charge 19c per song and offer a further 10% when a whole album is purchased. We believe this will attract the younger users away from iTunes, which charge almost 6 times more than we do." Recording companies pick the prices, much as they did for CDs sold in stores and online. On day one, songs including "Jai Ho" from the "Slumdog Millionaire" soundtrack, "Single Ladies" by Beyonce and "Chicken Fried" by the Zac Brown Band were bumped up to $1.29. TunesPro have made agreements with a number of record companies and have decided to keep profits on single downloads at reasonable levels. iTunes have become greedy, but things look set to backfire as more and more download site open for business and like TunesPro.com, cash in on the younger users by keeping prices low.
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