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iPhone users most likely consumers to pay for digital content

post #1 of 28
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Owners of Apple's iPhone are more likely than any other consumer to pay for digital content across a range of content types, including newspapers, a new study has found.

In addition to a greater willingness to agree to micropayments or subscriptions for content, U.K. iPhone users are also more likely to embrace different forms of technology, such as on-demand programming both on their handset and their living room TV. The annual Olswang Convergence Study published Wednesday also found that iPhone users retain enthusiasm for future technology: 37 percent want access to on-demand TV on their phone, compared to 11 percent among average consumers.

"The survey gives fascinating insight into iPhone users' behaviour in terms of current use, intended future use and willingness to pay for a wide variety of content across a range of platforms and devices," said Matthew Phillips, a partner with Olswang. "Having discovered the habit and simplicity of paying for apps and other services on the iPhone, it would seem that iPhone owners are also more willing to pay for content of many types than the general online population. To maximise their revenue opportunities in the digital environment, companies need to build payment solutions into consumer propositions on other platforms that are as easy to use as that on the iPhone."

The study was a collaboration between Olswang and YouGov, who polled 1,013 U.K. adults and 536 children aged 13 to 17.

The study does not offer good news for the print industry, as only 19 percent of respondents said they are willing to make micropayments or commit to subscriptions for newspaper content. Here as in everywhere, though, iPhone users were more likely to agree, with 30 percent saying they would pay to read articles or columns.

But 58 percent of adults said they would pay online for a film just released in theaters, and 52 percent said they would pay for online access to a movie that won't be released on DVD for at least two months. In addition, 40 percent are willing to pay to watch a film that is already available on DVD or on-demand via TV.

Here again, iPhone users are more open to the concept: 73 percent would pay to see a movie currently in theaters via the Web, 67 percent for one that won't be released on DVD for some time, and 54 percent for one available through traditional means.

The same rules apply to TV, where 30 percent of consumers would pay for a TV show they missed, while 41 percent of iPhone users are willing.



"The digital ecology has a complex mix of free, ad-supported and paid-for content," said John Enser, partner with Olswang. "As people look to access social media and consume music, films and TV shows on an increasing range of devices, it appears that they can be taught to pay, just so long as it is easy and painless and that they value what they receive in return. However, newspaper owners have an uphill struggle to convince consumers to pay."

Undoubtedly the iPhone's connection with iTunes for digital content, as well as the microtransaction nature of the App Store play a part in warming consumers up to the idea of regularly purchasing content online and via their phone. iTunes is the No. 1 seller of music in the U.S. with a 25 percent market share, and in September, Apple announced that more than 2 billion applications were downloaded from the App Store.

It's just more evidence that iPhone users represent a different type of consumer from the traditional market. This summer, one survey from Forrester Research found that iPhone users are richer, younger, and perhaps even more productive at work than those who use competing smartphones.
post #2 of 28
Sounds about right.
post #3 of 28
Quote:
This summer, one survey from Forrester Research found that iPhone users are richer, younger, and perhaps even more productive at work than those who use competing smartphones.

Whereas your typical Zune owner is in an entirely different category...
post #4 of 28
Quote:
Originally Posted by Dlux View Post

Whereas your typical Zune owner is in an entirely different category...

Well, so much for lunch. I need a shower after seeing that.
post #5 of 28
Quote:
Originally Posted by AppleInsider View Post

"The survey gives fascinating insight into iPhone users' behaviour in terms of current use, intended future use and willingness to pay for a wide variety of content across a range of platforms and devices,"

"There's an APP for that" and that one is called the 'Hypnoapp'...

"You are getting sleepy, very sleepy, at the snap of my fingers, you will want to buy online..."

Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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post #6 of 28
Quote:
Originally Posted by Dlux View Post

Whereas your typical Zune owner is in an entirely different category...

Dlux for the win!
post #7 of 28
Quote:
iTunes is the No. 1 seller of music in the U.S. with a 25 percent market share

Wait, 25%? I thought it was much higher than that... given all the news about people trying to upstart the dominant iTunes store.
post #8 of 28
That graph just screams "PowerPoint". Look at the crappy texture shading and stilted drop shadow.

God I love Keynote.
post #9 of 28
Quote:
Originally Posted by bartfat View Post

Wait, 25%? I thought it was much higher than that... given all the news about people trying to upstart the dominant iTunes store.


That stat refers to physical and digital media and is correct despite Apple only selling digital media. You are probably thinking of digital sales which has always hovered around 70%.
post #10 of 28
Quote:
Originally Posted by bartfat View Post

Wait, 25%? I thought it was much higher than that... given all the news about people trying to upstart the dominant iTunes store.

That is huge. That is all music sold, not just digital. Overall, CD sales as a whole is still more than digital, as I recall, but iTunes is the largest single store.
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post #11 of 28
I think I read somewhere that 95% of music is downloaded/pirated and yet iTunes is the number one Music seller in the universe!

Do the music, TV, eBook, movie and cell phone provider industries (and China) just not get it? Apple just does it right!


Ps. Teckstud have a nice Thanksgiving!
post #12 of 28
Quote:
Originally Posted by solipsism View Post

That is huge. That is all music sold, not just digital. Overall, CD sales as a whole is still more than digital, as I recall, but iTunes is the largest single store.

Come on, you are the queen of making sure every is correct around here, CD's are digital, after all that is what the second D stands for in CDDA
post #13 of 28
Physical, digital media and digital, digital media, is that what you mean?

Quote:
Originally Posted by jfanning View Post

Come on, you are the queen of making sure every is correct around here, CD's are digital, after all that is what the second D stands for in CDDA
Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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post #14 of 28
Quote:
Originally Posted by jfanning View Post

Come on, you are the queen of making sure every is correct around here, CD's are digital, after all that is what the second D stands for in CDDA

I'd say you are being pedantic with your excessive focus on minor details but that term more accurately describes a pedagogue which seems to be the antithesis of your rudimentary understanding of the English language, unwillingness to understand that words often have more than one meaning and that colloquial usage is often used on tech forums.

You may want to take note. When comparing "digital" v. "CDs" that is simply shorthand to refer to digitally downloadEd audio purchases and digital audio (in contrast analog) that is actually a series of divots on a thin metalic sheet that is optically read. You may also see digital and optical. Again, optical will refer to CD audio while digital will not.

PS: When you see posters, such as myself, writing "SL" it does not refer to the game Second Life. It refers to Mac OS X 10.6 Snow Leopard. However I suggest you digest what you have read in order to make sure a poster isn't using the initialism differnetly than expected. RiF.
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post #15 of 28
Quote:
Originally Posted by solipsism View Post

I'd say you are being pedantic with your excessive focus on minor details but that term more accurately describes a pedagogue which seems to be the antithesis of your rudimentary understanding of the English language, unwillingness to understand that words often have more than one meaning and that colloquial usage is often used on tech forums.

You may want to take note. When comparing "digital" v. "CDs" that is simply shorthand to refer to digitally downloadEd audio purchases and digital audio (in contrast analog) that is actually a series of divots on a thin metalic sheet that is optically read. You may also see digital and optical. Again, optical will refer to CD audio while digital will not.

Quit with your backpedalling and just admit it when you are wrong, you need to say what you mean, when talking about audio and saying digital you are talking about all digital audio including CD's DVD's and Blu-ray.


Quote:
Originally Posted by solipsism View Post

PS: When you see posters, such as myself, writing "SL" it does not refer to the game Second Life. It refers to Mac OS X 10.6 Snow Leopard. However I suggest you digest what you have read in order to make sure a poster isn't using the initialism differnetly than expected. RiF.

That comparision isn't even the same.
post #16 of 28
Quote:
Originally Posted by hill60 View Post

Physical, digital media and digital, digital media, is that what you mean?

I think you need to re-read the tread, especially the message I replied to
post #17 of 28
Quote:
Originally Posted by jfanning View Post

Quit with your backpedalling and just admit it when you are wrong, you need to say what you mean, when talking about audio and saying digital you are talking about all digital audio including CD's DVD's and Blu-ray.

No. I've dumbed down enough of my posts enough for you and Teckstud yet you two still fail to grasp even the most basic concepts. I'm not going to stop using well known and worn terminology to suit your specific disability. If you can't differentiate between digital and optical that is your problem, not mine.

You may want to put me on your ignore list so you don't have further issue with understanding what most everyone else seems to comprehend.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #18 of 28
Quote:
Originally Posted by solipsism View Post

No. I've dumbed down enough of my posts enough for you and Teckstud yet you two still fail to grasp even the most basic concepts. I'm not going to stop using well known and worn terminology to suit your specific disability. If you can't differentiate between digital and optical that is your problem, not mine.

a CD is an optical format I understand that, what I don't understand is why you thing the digital data stored on that disc is also optical? You seem to be having difficultly understanding the difference between the data and the object it is stored on.

Quote:
Originally Posted by solipsism View Post

You may want to put me on your ignore list so you don't have further issue with understanding what most everyone else seems to comprehend.

I don't think it is fair on everyone else to say they don't understand a simple concept like you seem to.
post #19 of 28
Quote:
Originally Posted by jfanning View Post

a CD is an optical format I understand that, what I don't understand is why you thing the digital data stored on that disc is also optical? You seem to be having difficultly understanding the difference between the data and the object it is stored on.

I wonder how you fail to understand such basic concepts. It has to make difficult for you. I honestly feel bad for you that when I wrote, "CD sales as a whole is still more than digital you didnt comprehend that mean digital download from internet-based music stores. Saying optical or CD makes it quite clear which format one is referring to.

What is interesting is that you havent yet cried foul at the article as the title clearly says digital content and not digitial content from internet-based stores. There is even a quote from John Enser stating "The digital ecology has a complex mix of free, ad-supported and paid-for content. Id like to give you the benefit of the doubt; that you arent so obtuse as to think he is referring to CDs, DVDs and Blu-ray, but I think Im well past expecting even crude critical thinking from you.
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post #20 of 28
Quote:
Originally Posted by solipsism View Post

I wonder how you fail to understand such basic concepts. It has to make difficult for you. I honestly feel bad for you that when I wrote, "CD sales as a whole is still more than digital you didnt comprehend that mean digital download from internet-based music stores. Saying optical or CD makes it quite clear which format one is referring to.

I knew what you were trying to say, I thought it was important to remind you that you were wrong, after all, you seem to insist that everything that anyone else says is correct.


Quote:
Originally Posted by solipsism View Post

What is interesting is that you havent yet cried foul at the article as the title clearly says digital content and not digitial content from internet-based stores. There is even a quote from John Enser stating "The digital ecology has a complex mix of free, ad-supported and paid-for content. Id like to give you the benefit of the doubt; that you arent so obtuse as to think he is referring to CDs, DVDs and Blu-ray, but I think Im well past expecting even crude critical thinking from you.

A lot of the titles on this site are wrong or misleading, do you want me to post a message on everyone that I see?
post #21 of 28
I'd like to share that I've become part of this "purchasing" demographic;
Until recently I had a developed habit of obtaining free software as well as media,
but since I've purchased my 3GS I've found myself purchasing apps as well as music,
even though I've had alternatives.

Reflecting on this change, I'd say that the primary causes for my change in purchasing pattern (if you could even call it that) are the following:

1. Proximity - It was absolutely necessary for me to install iTunes to use my 3GS. The iTunes Store is one click away then, and I began to visit the App Store to go over popular apps as well as their reviews, which cannot be accessed otherwise. Creating an iTunes store account (including entering card information) is also quick, further adding to the ease of access.

2. Quality Experience - The "shopping" experience is significantly more pleasant in the store, as compared to what can be seen in other online shopping services. No ads, good amount of user reviews, apps are well-organized, etc.

3. Quality Content - The Apps themselves are well-developed, and are constantly updated. Apps lower in quality simply do not show up as easily in the Store, thanks in part to user reviews. Tracks obtained via iTunes are also tagged in a consistent manner, which is a change from prior experience. Naturally, my cognition of software and media as something of actual value became profoundly more solid.

Apple is strategically creating customers through forcing a change in their consumption behavior. I have experienced this first hand, and by damn was I surprised!

At the core of their business, Apple doesn't make things, nor even services, they create customers! Golly I'd be surprised if Google, MS, Palm or any other player in the market can successfully imitate that.

On another note,
Quote:
Originally Posted by jfanning View Post

I knew what you were trying to say, I thought it was important to remind you that you were wrong, after all, you seem to insist that everything that anyone else says is correct.
A lot of the titles on this site are wrong or misleading, do you want me to post a message on everyone that I see?

With all due respect, you 2 gentlemen sound like overeducated children
post #22 of 28
Oh, forgot to add one more element:

-Significant protection of their market (barriers of entry?)
The hardware and software of the iPhone and iTunes is designed in a manner which makes illegitimate media and software difficult to maintain. Current iPhones have severe limitations regarding "Jailbreaking". This includes the inability to reboot a JBed device unattended, the perceived risks involved in SSHing and downloading unapproved software, the amount of time, energy, and research necessary to actually install pirated IPAs, etcetc.

With this push and pull of limitations and benefits, the iPhone succeeds in changing consumer behavior.
post #23 of 28
Quote:
Originally Posted by jfanning View Post

Quit with your backpedalling and just admit it when you are wrong, you need to say what you mean, when talking about audio and saying digital you are talking about all digital audio including CD's DVD's and Blu-ray.

Only if you're a pedantic moron. Everyone else around here knows digital refers to digital downloads. Who the hell has analog music media anymore outside a few vinyl and 8-track freaks?
post #24 of 28
Pedantic seems to be a popular word around here. LOL.
post #25 of 28
Quote:
Originally Posted by AznZOFIA111 View Post

I'd like to share that I've become part of this "purchasing" demographic;
Until recently I had a developed habit of obtaining free software as well as media,
but since I've purchased my 3GS I've found myself purchasing apps as well as music,
even though I've had alternatives.

[excellent points deleted]

Apple is strategically creating customers through forcing a change in their consumption behavior. I have experienced this first hand, and by damn was I surprised!

At the core of their business, Apple doesn't make things, nor even services, they create customers! Golly I'd be surprised if Google, MS, Palm or any other player in the market can successfully imitate that.

Nice post and this is what a lot of other companies are so bad at doing and only pay lip service to. Arguably, Apple enjoys a demographic where price isn't king and free/cheap doesn't trump convenience. It wouldn't be as likely to work on the lower end of the customer spectrum. There's no way for Nordstroms to attract customers from Walmart on the basis of service and quality.

Slightly tangent, Walmart drives me insane with cluttered and messy aisles and poor service so I shop Target instead with wider, neat aisles, and mostly happy, helpful staff with competitive but not as low pricing. I guess that puts me into that 1 cut above the lowest end demographic.
post #26 of 28
Quote:
Originally Posted by Quadra 610 View Post

Pedantic seems to be a popular word around here. LOL.

Probably because a lot of us around here are that INTJ personalities prone to be pedantic, know what the word means and prefer fancy words to "annoying *sshole" .
post #27 of 28
Quote:
Originally Posted by vinea View Post

Probably because a lot of us around here are that INTJ personalities prone to be pedantic, know what the word means and prefer fancy words to "annoying *sshole" .

Ive spent the last half hour going over the Myers & Briggs personality types. I had never heard of this before. Interesting stuff. Id say I fall into the extroverted v. introverted category.

PS: Could iNtuitive be the first use of a lower-case i followed by a capital letter?
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post #28 of 28
Quote:
Originally Posted by vinea View Post

Only if you're a pedantic moron. Everyone else around here knows digital refers to digital downloads. Who the hell has analog music media anymore outside a few vinyl and 8-track freaks?

Who is the moron? There you go splitting digital and analog and totally ignoring the fact that all the optical media are digital as well
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