iTunes Users are Willing to Pay $10 Per Month for Cloud-Based Music

iTunes User

NPD Group Inc. coordinated a survey and find out that million of Apple users would be willing to pay for cloud-based music services on the iTunes platform. The research company asked Apple patrons, including iTunes, iPod, iPhone, and iPod Touch users to consider various music subscription-model concepts. As results of the latest survey, more than a quarter shows huge interest in a free cloud-based music option, and many users were willing to pay the fee for their subscription to easily access their own music archives from various platforms and devices.

Additionally, according to the report there are approximately seven and eight million iTunes users in the US would have strong interest in one of the paid subscription options. iTunes users proclaimed that they are willing to pay at least $10 per month for music streaming or for access to their personal music libraries on multiple devices.

Russ Crupnick, vice president and senior entertainment analyst for NPD said:

“After the service’s launch, user numbers could conceivably rise substantially, as they upgrade to newer connected devices and actually experience the benefits of cloud-based music.” He added: “If the consumers who indicated strong interest in a paid subscription actually adopted one of those services at $10 per month, the market opportunity is close to $1 billion in the first year, which is roughly two-thirds the revenue garnered by the current pay-per-download model.”

Crupnick said it was impossible to perceive the effect of these services might have on the traditional pay-per-download model, or whether consumers would spend a lot of time on digital music overall.

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