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Research-Based Consulting Since 1984
AHEAD OF THE CURVE
February, 2007
Volume 2, Issue 2

Most tune in to radio to find out about new music

CD sales slumping but DVDs are big business

Most say Web sites -- not downloaders -- should pay if the law comes knocking

DVDs win out over movies


Not everyone is all about the latest in audio technology – 40% say they own a turntable and 12% of those use it to listen to music at least once per week. Older respondents are most likely to say they own a turntable, and around half of those older than age 50 have one.

Entertainment Evolution

Technology is changing everything about the way Americans are entertained

Americans have never had greater access to entertainment than they do today. MP3 players allow us to keep our entire music collection in our pocket, DVDs can be delivered to our door and we can download almost anything from the Internet. This month’s Zogby’s American Consumer newsletter explores how today’s American is entertained – and how Americans’ views of entertainment continue to change.

MP3 players change how we listen to music

Long gone are the days when a music collection meant filling up rack after rack with CDs, audio tapes or records. Today thousands of songs can be stored digitally on a computer, and MP3 players allow us to take our collections along with us wherever we go. Forty-two percent of respondents in our poll said they own an MP3 player – of those, our Zogby Interactive survey of 10,145 adults nationwide showed that the iPod is king – with 57% market share.

Our latest consumer survey was conducted Jan. 26-29, and contains a margin of error of +/- 1.0 percentage points.

But not everyone has embraced the latest in music technology. Most respondents in our online survey (57%) said they don’t have an MP3 player – and slightly more than half (52%) of those said it’s because they just don’t want one. Others said MP3 players are too expensive (11%) or they prefer to listen to their music on CDs, audio tapes or records (11%). Price is the biggest barrier to owning an MP3 player for younger adults – more than a third (36%) of those age 18-24 said MP3 players are too expensive. Older adults are most likely to say they just don’t want one – more than half of those older than age 30 said they just aren’t interested in having an MP3 player.

More than half (55%) of respondents who do have MP3 players said they load them with music they convert from CDs they already have in their collection, while one in four (26%) said they purchase most of the music for their MP3 player online. Twelve percent say they download music from file-sharing Web sites.

(cont'd on next page)



Volume 2, Issue 2 Page 2

MP3 players (cont'd)

Most use their MP3 players primarily for listening – only 13% say they download video programs to watch on their MP3 players. But MP3 owners are listening to more than just music – more than half (64%) said they tune into Podcasts, 46% listen to radio programs and 46% listen to audio books.

The vast majority of motorists and passengers (91%) said they listen to music while driving or riding in a vehicle – more than half of those respondents (57%) said their primary music source is the radio. Younger adults are most likely to drive to music – 95% of those age 18-29 listen to music while driving or riding in a vehicle compared to 83% of those age 65 and older. While the radio is the top choice in all age categories, older respondents (age 70 and older) are most likely to tune in to a radio station (65%), while younger respondents (age 18-24) are most likely to listen to CDs (28%) or MP3 players (18%) than other age groups. Overall, a quarter of respondents (26%) said they mainly listen to CDs and just 7% said they primarily listen to their MP3 player. For one in 10, satellite radio was their top choice for listening to music when they drive or ride. Satellite radio is most popular among those with household incomes of more than $100,000 (17%).

For those who use public transportation, 42% say they listen to music during their trip – and three-quarters (78%) said their MP3 player is their listening method of choice. Younger adults (age 18-24) are most likely to listen to music while taking public transportation – nearly three in four (72%) said they listen to music on their way, but that figure falls among older age groups. Eighty-seven percent of adults age 18-29 said they listen to their MP3 player on the ride.

Most tune in to radio to find new music

Radio still rules as the main way Americans discover new music – nearly half (49%) said they tune into the airwaves to learn about new bands or the latest songs.

But 19% said they mostly turn to the Internet to find out what’s new in the music world. Younger adults are more likely than older respondents to turn to the Internet – 42% of those 18-24 said the Internet is where they scope out new music. Those age 70 or older were most likely to say they tune in to television to find new tunes.

CD sales slumping but DVDs are big business

Our poll finds sobering news for the retail CD industry – 37% said they purchase fewer CDs at retail outlets than they did five years ago – and another one in five (19%) said they no longer buy CDs at retail outlets at all. For a quarter of respondents (26%) their CD purchases have remained the same – just 6% say they purchase more CDs than five years ago. Those 18-29 were more likely (42%) than older adults to say the number of CDs they purchases compared to five years ago has declined – and they’re also more likely to say they’ve totally stopped purchasing CDs.

The picture is somewhat brighter for DVD sales – 17% said they purchase more DVDs at retail outlets than five years ago. More than a quarter (27%) of respondents age 18-24 say they have increased their DVD purchases. But overall, nearly a quarter (24%) said they now purchase fewer DVDs and 8% have stopped buying them all together. Those age 25-34 (31%) are more likely than other age groups to say they’ve cut back on their DVD purchases while those age 70 and older (10%) say they don’t purchase DVDs any more.

 

 





Volume 2, Issue 2 Page 3

Most say Web sites – not downloaders – should pay if the law comes knocking

So what about snatching some free tunes off the Web? We’ve all heard the tales of the music industry cracking down on those who illegally download songs from the Internet – but who should pay the price? When asked if the Web site operator or the person downloading the songs should be prosecuted for downloading songs, most said the Web site should take the blame. Forty-two percent said if a Web site supports downloading music for free or little cost, the Web site operator – not the downloader – should be prosecuted by law enforcement agencies.

But some don’t think the downloader should be off the hook just because free songs are available – 27% said they believe downloading music without compensating the artists is illegal and people who do it should be prosecuted. Younger adults are much more likely to lay blame with the Web site – more than half (57%) of those age 18-24 feel this way compared to just 31% of those age 70 and older. Older adults are more likely to blame the downloader – 37% of those age 70 and older blame the downloader compared with just 13% of those age 18-24. But many said they aren’t sure who should take the blame when legal issues arise. Overall, nearly a third (30%) said they just aren’t sure what should be done about the legal issues surrounding downloading music.

Mirroring their feelings on downloading music, 40% of respondents said companies providing movies for free download on the Internet should be liable for any legal consequences, not the individual downloader – but 31% say the person downloading the movie should take the blame. Again, nearly a third (29%) said neither party is to blame or they’re not sure.

Americans cut back on trips to the movies

There’s nothing quite like watching a film on a giant screen – but as home theaters become more and more common (and affordable), should theater owners be worried?

Our polling shows nearly half (45%) said that, while they still go to the movies, their movie attendance has decreased from five years ago – 27% said it is much less and 9% said they never go to the movies anymore. Slightly more than a third (36%) say their movie attendance is about the same as it was five years ago. Only 10% say their movie attendance has increased over the past five years – those age 18-24 are most likely to say their movie attendance has increased –16% say they attend more now.

But those age 25-34 are most likely to say their attendance has decreased – and the oldest respondents (age 70 or older) are most likely to say they no longer go to the movies (23%). Those without children are twice as likely (10%) as those with children younger than age 17 living at home (5%) to say they no longer attend movies.

High ticket prices (30%) and a dislike for the movie selections (30%) were the top reasons given for falling movie attendance – 13% said they don’t like the crowds in the theater. Those age 18-24 are most likely to complain about costly tickets, as nearly half (46%) said high ticket prices have kept them away from the theater. Among older adults, dissatisfaction with the film selections is the main deterrent – 46% of those age 65 or older said this.

More than a third (37%) of respondents said they go to the movies fewer than six times per year – 21% said they don’t even make it to the movies once a year. Overall, 10% said they never go.

Those age 18-24 are most likely to say they go to the movies several times per month (9%), but attendance numbers decline among increasingly older respondents.




DVDs win out over movies

Most (63%) said they would rather have free unlimited DVD rentals with no late fees for a year than a year’s worth of free unlimited movie passes (30%). Those who live in large cities – and most likely have access to better theaters and more films – were more likely to choose the movie passes than those living in less populated areas. More than a third (37%) who live in cities favor movies, compared to 23% who live in rural areas. Rural respondents without access to as many theaters and films were much more likely to choose the DVD rentals – 71% picked the DVDs compared to 58% who live in large cities.

DVDs again beat out movies by a wide margin when people were given the choice between 100 free DVDs of their own choosing (71%) or 100 free movie passes (24%). Women (26%) were slightly more likely than men (22%) to favor 100 free movie passes, while nearly a quarter (72%) of men and (69%) of women would choose the DVDs.

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Zogby's American Consumer Newsletter
Zogby’s American Consumer Publisher
John Zogby
President & CEO, Zogby International
Editor-in-Chief
Fritz Wenzel
Senior Writer
Stephanie DeVries
Managing Editor
Marc Penz
Copy Editor
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