Online music purchases will leap from one billion dollars this year to 6.2 billion dollars by 2006, Internet consultancy and rating company Jupiter Media Metrix reported today.
The consultancy said sales of digital music files comprised three percent of total online music purchases. The company is predicting that will total 30 percent by 2006. Spending for these digital files will grow from 29 million dollars to 1.9 billion dollars by 2006, it said.
Part of this growth, the consultancy said, can be attributed to the demise of Napster, a free digital music exchange Web site shut down after legal challenges by the world's leading record companies.
The end of an easy, free stream of music has touched off an acquisition binge by AOL, Microsoft, Vivendi Universal and other companies, which now want to take advantage of the market created by the end of Napster.
"Legal precedents have been set and label-backed digital music services are preparing to launch," said Aram Sinnreich, a senior Jupiter analyst.
AFP