Jupiter Media Metrix cut its five-year forecast for the size of the online music industry by 11.3%. In last summer, JMM predicted that online music market will be worth of $6.2 billion by 2006 and now their estimate is that by 2006 the market is worth of $5.5 billion.
Out of $5.5 billion, JMM estimates that subscription services will account appx. $1 billion and one-off music downloads appx. $600M. Rest of the amount comes from sales of more traditional CDs (and their future alternatives like SACDs and DVD-Audio discs) through websites and online services.
Jupiter cut its forecast mainly because of the weak economy and because it predicted earlier that major record label -backed subscription services MusicNet and Pressplay would have been launched by summer/fall 2001 -- and they were launched in December 2001.
Jupiter cut its forecast mainly because of the weak economy and because it predicted earlier that major record label -backed subscription services MusicNet and Pressplay would have been launched by summer/fall 2001 -- and they were launched in December 2001.
