HITS Daily Double

legal download spending up, P2P downloading drops

THE MORPHING DIGITAL LANDSCAPE: Interestingly, the amount consumers are spending on song downloads rose from an average of $33 per year to $50 per year between 2007-09, while there's also been a dramatic drop-off in the number of songs being shared on P2P networks. The study attributed this decline to increasing competition from legal services, fear of spyware and music shared via other means, like swapping hard drives. The data also revealed that free Internet radio services like Pandora led to a 41% increase in paid downloads, while free on-demand services like Spotify actually led to a 13% drop in paid downloads. That info strengthens Edgar Bronfman’s argument against launching Spotify in the States. (2/26a)