How many people are actually reaching for their wallets to enjoy music—at least once in a given year? The answer could be depressingly slim, according to talking points jotted down by TechCrunch. “Over half of the US doesn't pay anything for music each year," estimated Pandora CTO Tom Conrad atGigaOm's Roadmap Conference. On top of that, another 40 percent fork over about $15 a year, perhaps the cost of an album with a few a-la-carte downloads tossed in.
Which means less than 10 percent of US-based consumers shell out more than $15 for music in a typical year, according to Conrad's estimation. And, we've actually heard far worse: the running number from the IFPI, for example, is that 19 out of 20 downloads are pirated, for example. And, research surveys have shown that typical iPod owners have just a handful of paid downloads in their devices—at most.
Sounds like Pandora is helping that situation, especially since every streamed song has a royalty payment attached to it. That makes Pandora one of the good guys, though Universal Music Group head of digital Rob Wells recently broiled the company by pointing to a cannibalizing effect. “I don't think they're doing the music or recording industry any favors," Wells attacked, while somehow contrasting that against a “great" Spotify.
Wells further advised Pandora to “bolt on" a premium service, though earlier, founder Tim Westergren candidly noted that consumer appetite for paid add-ons is weak.
Which means less than 10 percent of US-based consumers shell out more than $15 for music in a typical year, according to Conrad's estimation. And, we've actually heard far worse: the running number from the IFPI, for example, is that 19 out of 20 downloads are pirated, for example. And, research surveys have shown that typical iPod owners have just a handful of paid downloads in their devices—at most.
Sounds like Pandora is helping that situation, especially since every streamed song has a royalty payment attached to it. That makes Pandora one of the good guys, though Universal Music Group head of digital Rob Wells recently broiled the company by pointing to a cannibalizing effect. “I don't think they're doing the music or recording industry any favors," Wells attacked, while somehow contrasting that against a “great" Spotify.
Wells further advised Pandora to “bolt on" a premium service, though earlier, founder Tim Westergren candidly noted that consumer appetite for paid add-ons is weak.
