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Report: 14 percent of Internet using iTunes service regularly

post #1 of 35
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Statistics gathered by Nielsen NetRatings shows that traffic to Apple's iTunes Music Store grew by 241 percent in 2005, reports BBC News.

"Between December 2004 and 2005 the numbers of people going to the site grew from 6.1 million to 20.7 million," according to the report. "The figures mean that about 14 percent of the net's active population are regularly using the iTunes service."

"Consumers have clearly indicated that they are eager to control their own music libraries, one song at a time," said Jon Gibs, director of media analytics at Nielsen NetRatings.

In addition to looking at raw user numbers, Nielsen NetRatings also tried to find out who those users were.

The research revealed that teenagers aged between 12 and 17 years old made up a disproportionately large group of iTunes users, according to the report. They were more than twice as likely to visit the music store than any other population group.

The research firm also found that iTunes users comprise a readily identifiable audience in terms of their likes and dislikes for certain goods and services.

"For instance, Nielsen said, iTunes users were 2.2 times more likely to own a Volkswagen than the average internet user. Audi and Subaru were also popular with regular users of the Apple store."
post #2 of 35
I'd seen the report that iTunes reaches 14% of Internet users. But they're REGULAR users? Not just people who "have tried it?" That's even more impressive.

The young demographic bodes well for Apple's future too.

The iPod Gateway Effect (don't make me say halo) is real--but it builds over time.
post #3 of 35
If you're Apple, you've got to be looking at those 12-to-17 numbers and smiling from ear to ear. If iTunes continues to define music downloads as a very intractible category that is highly resistant to consumer shopping, Apple will have a cute little trillion dollar asset on its hands.

I would not change download services under any set of circumstances that did not include all of my iTunes downloads working along with the downloads from the other service. No way.
post #4 of 35
Quote:
Originally posted by AppleInsider
...iTunes users were 2.2 times more likely to own a Volkswagen than the average internet user. Audi and Subaru were also popular with regular users of the Apple store."


True. Volkswagen owner. This makes sense since VW & Audi owners are concerned about style, same as Apple owners.

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post #5 of 35
Quote:
Originally posted by nagromme
I'd seen the report that iTunes reaches 14% of Internet users. But they're REGULAR users? Not just people who "have tried it?" That's even more impressive.

The young demographic bodes well for Apple's future too.

The iPod Gateway Effect (don't make me say halo) is real--but it builds over time.

Please don't use the word "Gateway". It brings up unpleasant thoughts of 8 pound tablets.
post #6 of 35
I foolishly posted a new thread instead of tacking onto this one... anyway, Tello news.

http://forums.appleinsider.com/showt...threadid=60640

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post #7 of 35
Quote:
Originally posted by SpamSandwich
True. Volkswagen owner. This makes sense since VW & Audi owners are concerned about style, same as Apple owners.

They said iTunes users, not apple owners. One would hope Apple owners were more like Honda and Toyota owners; people looking for something that just works, doesn't need a lot of maintenance, and doesn't make you embarrassed to see it in your driveway.

But, then again, I owned only Hondas, because they are relatively cheap, never break down, and get me where I need to go. Very low on my requirement list is "Looks good".

What I'd love in a mac is (a) relatively inexpensive, (b) reliable, and (c) capable of meeting current and future needs.

Unfortunately, Apple never had (a) (except, perhaps for the mini, which is a way underpowered mac that most people seem to think is only good as a media center), lost (b) several years ago (how I long for the day when you don't feel like you're risking $$$ buying a rev A computer from Apple), and lost out on '(c)' long ago (minimum upgrade capability, even on their tower lines, style over substance on their cases [It took them forever to put a USB or firewire or headphone port on the front of a computer, only to put them all on the back on them again, and, considering there's no internal expansion available, they include such a paltry number of USB/firewire ports it makes you wonder what they're smokin').

And if we can get them to stop tweaking the damn UI every time they upgrade the OS, so we don't have to keep changing our work habits!
post #8 of 35
Quote:
Originally posted by SpamSandwich
True. Volkswagen owner. This makes sense since VW & Audi owners are concerned about style, same as Apple owners.

Heh, I drive a GTI. I never would have put vehicle ownership with iTunes usage. I dro remember a couple years ago when volkswagen and Apple had a merketing thing promoting the beetles with iPods though.
post #9 of 35
Quote:
Originally posted by SpamSandwich
True. Volkswagen owner. This makes sense since VW & Audi owners are concerned about style, same as Apple owners.

Hopefully apple does not emulate VWs quality and service! (I kid )
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post #10 of 35
I think the correlation makes perfect sense. VW, Audi and Subaru are (for lack of a better term) exotic. They make cars with completely original designs and superior technology (like turbo engines, AWD, etc.) to gain boosts in performance. I think teenagers tend to think 'outside the box' a little more than older people who just buy the cheapest thing that can to get from point A to B and wouldn't look at something so 'exotic'. The same is true of iTunes as it is still fairly new, something and a product of Apple. Apple is also 'exotic' and Mac users (which I'm guessing are most of the adult iTunes users) tend to also be creative people who think 'outside the box'.

Please note that I'm not saying only those people or car makers fit any of the fore-mentioned attributes. I happen to drive a Subaru WRX.
post #11 of 35
Quote:
Originally posted by JohnnyKrz
I think the correlation makes perfect sense. VW, Audi and Subaru are (for lack of a better term) exotic. They make cars with completely original designs and superior technology (like turbo engines, AWD, etc.) to gain boosts in performance. I think teenagers tend to think 'outside the box' a little more than older people who just buy the cheapest thing that can to get from point A to B and wouldn't look at something so 'exotic'.

1. How many teenagers are buying Audis? Even the Subaru WRX (the only "exotic" Subaru in my view) is a wee bit out of the range for a teenager.

2. I suspect that most "older" people realize that they have other financial responsibilities and that "exotic" needs to be balanced with things like...mortgage payments...groceries and various kid-related expenses.

3. I am "older" (no teenager anyway...mid-30's) and would love a Subaru WRX (which I may still get when my tried and true Toyota Tacoma bites the dust...having a hard time plunking down $30K on a new car when I have a perfectly usable one that is paid for), Audi A4 (which another non-teenager...mid-30's...friend of mine owns) or VW Passat (though recent design changes have me cooling to the Passat)...maybe even a GTI (which a non-teenager...mid-30's...friend of mine recently acquired).

Bottom line? I think there are a couple of demographics that iTunes/iPod is hitting. One is certainly teenagers and college kids. Another is the older (35-45) set...couple of kids...mid-career...able to afford the Audi/VW/Subaru WRX/etc. Like that.
post #12 of 35
Quote:
"Between December 2004 and 2005 the numbers of people going to the site grew from 6.1 million to 20.7 million," according to the report. "The figures mean that about 14 percent of the net's active population are regularly using the iTunes service."

Why are you guys hung up on the VW quote? And just how do they track that besides asking people what car they drive? Maybe it is just that VW users are more proud of what they drive (because they are trendy- not because they are reliable) and therefore more likely to answer the question about "what kind of car do you drive?" (I, of course, would answer the question because I am love my Scion XB with the iPod stereo )


Anyway... what struck me about this article is the quote above... did they take into consideration that iTunes now practically mandates that you go to the store? Launch it for the first time and you're there. That isn't traffic driven by desire, it is a default preference. With iTunes 6.0.2, it even keeps the "Ministore" open while you're listening to music. Does that count as a "visit" to the ITMS? I am not complaining here.. I just wonder if the "growth" is truly consumer driven, or Apple preference driven.
-Brett
post #13 of 35
Quote:
Originally posted by brett_x
Why are you guys hung up on the VW quote? And just how do they track that besides asking people what car they drive? Maybe it is just that VW users are more proud of what they drive (because they are trendy- not because they are reliable) and therefore more likely to answer the question about "what kind of car do you drive?" (I, of course, would answer the question because I am love my Scion XB with the iPod stereo )


Anyway... what struck me about this article is the quote above... did they take into consideration that iTunes now practically mandates that you go to the store? Launch it for the first time and you're there. That isn't traffic driven by desire, it is a default preference. With iTunes 6.0.2, it even keeps the "Ministore" open while you're listening to music. Does that count as a "visit" to the ITMS? I am not complaining here.. I just wonder if the "growth" is truly consumer driven, or Apple preference driven.
-Brett

It's driven by sales of tunes. 850 million tunes sold so far. Most of those sales were from this year. Over 8 million videos sold in the last 2 1/2 months.

Except for Hp carrying iTunes on their machines for a while, people CHOOSE to install the program, along with the link to the store. Almost always because they are about to buy, or have already bought, an iPod. They bought an iPod because they want to put music (and now video's) into it.

Other than their own stuff, and the fairly small number (according to the reports) who use P2P, that means purchasing from iTunes.

So, what do you think?
post #14 of 35
I own a Subaru and so does my friend. We both own macs too. So apparently they are somewhat accurate. How they were capable of figuring things out like escapes me.
post #15 of 35
You're right.. it's a dumb thing to dwell on. I just thought it was interesting because I could see the correlation, no matter how vague it is. It was just an observation based on little fact as are most opinions.

As far as the demographics, I always have to ask myself where they obtain their information. Maybe the demographic is just more likely to respond to surveys, etc.

Yep.. the term 'traffic' makes me think it is the amount of internet bandwidth being used for the music store which could also include every time iTunes authorizes a computer to play a song or loads any part of the music store. The only way to measure its success is by its sales, which seem to be good.
post #16 of 35
Quote:
Originally posted by melgross
It's driven by sales of tunes. 850 million tunes sold so far. Most of those sales were from this year. Over 8 million videos sold in the last 2 1/2 months.

Except for Hp carrying iTunes on their machines for a while, people CHOOSE to install the program, along with the link to the store. Almost always because they are about to buy, or have already bought, an iPod. They bought an iPod because they want to put music (and now video's) into it.

Other than their own stuff, and the fairly small number (according to the reports) who use P2P, that means purchasing from iTunes.

So, what do you think?

Maybe the quote was worded poorly, but when I read:

Quote:
Between December 2004 and 2005 the numbers of people going to the site grew from 6.1 million to 20.7 million

It didn't seem to be talking about actual sales. And just because they chose to install iTunes, doesn't mean that they intended to go to the store. I was just questioning the numbers being driven by Apple changing the way the iTunes application works.

And please don't get me wrong, I love that Apple is doing so well. In fact, I hope they get to bully the music industry around even more than they are right now.
A friend of mine pointed out something the other day. You can go to a music store and pick up a CD for about $15. You can go to a retail or video store and pick up a DVD for about the same. Think of the production costs of a movie VS a recorded CD. A movie can cost $300 Million to make. A CD- Maybe $1 Million (in extreme cases)? And they "can't afford" to sell songs for $.99. Don't forget that you get a full soundtrack with your movie in most cases. The Music industry has been milking us for a long time.
post #17 of 35
Quote:
Originally posted by AppleInsider
The research revealed that teenagers aged between 12 and 17 years old made up a disproportionately large group of iTunes users, according to the report.

That goes a long way towards explaining the quality of the "Customer Reviews" on the Music Store.
post #18 of 35
1. We might just soon see a promotion for 1 Billion songs sold.

2. Even if that 14% shops regularly, what does "regular" mean in this case. Once a week? Once a month?
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post #19 of 35
Quote:
Originally posted by brett_x
Maybe the quote was worded poorly, but when I read:



It didn't seem to be talking about actual sales. And just because they chose to install iTunes, doesn't mean that they intended to go to the store. I was just questioning the numbers being driven by Apple changing the way the iTunes application works.

And please don't get me wrong, I love that Apple is doing so well. In fact, I hope they get to bully the music industry around even more than they are right now.
A friend of mine pointed out something the other day. You can go to a music store and pick up a CD for about $15. You can go to a retail or video store and pick up a DVD for about the same. Think of the production costs of a movie VS a recorded CD. A movie can cost $300 Million to make. A CD- Maybe $1 Million (in extreme cases)? And they "can't afford" to sell songs for $.99. Don't forget that you get a full soundtrack with your movie in most cases. The Music industry has been milking us for a long time.

Sales are the purpose of the site, and the reason for installing it in the first place.

It's unlikely that people will install it, and then keep going back to it, if they don't have intentions of buying something.

This doesn't mean that people buy something every time they go. Sometimes they go to browse the latest offerings.

But, with the sales almost tripling during 2006, you can see that these numbers do relate to sales.
post #20 of 35
I just read this in the report:

"The research also revealed that the most popular alcohol drink was cider followed by imported beers"

I hope that wasn't for that same 12 to 17 year old crowd.
post #21 of 35
Quote:
Apple never had (a) (except, perhaps for the mini, which is a way underpowered mac that most people seem to think is only good as a media center), lost (b) several years ago (how I long for the day when you don't feel like you're risking $$$ buying a rev A computer from Apple), and lost out on '(c)' long ago (minimum upgrade capability, even on their tower lines, style over substance on their cases

Interesting Louzer how far you go out of your way to tirelessly post the same complaints about Apple to people who have no power over what Apple does.

I suppose we are stuck in a cycle where Apple does not offer the perfect computer for you. You seem to refuse to buy an alternative that will suite your needs better.

Or you refuse to be satisfied with an alternative you have purchased.

And we have to keep hearing about it.
post #22 of 35
Quote:
Originally posted by melgross
Except for Hp ...
So, what do you think?

I think it's HP, dag gummit!
post #23 of 35
Quote:
Originally posted by brett_x
Anyway... what struck me about this article is the quote above... did they take into consideration that iTunes now practically mandates that you go to the store? Launch it for the first time and you're there. That isn't traffic driven by desire, it is a default preference. With iTunes 6.0.2, it even keeps the "Ministore" open while you're listening to music. Does that count as a "visit" to the ITMS? I am not complaining here.. I just wonder if the "growth" is truly consumer driven, or Apple preference driven.
-Brett

Possibly when you first installed it, it took you to the Music Store (although I don't remember that happening to me when I did it). In any case, if you've left it on library, podcast, or a playlist, I'm sure it doesn't take you to the Music Store again unless you actually click on it.

So the number of "mandated" visits can't be that big. And those are certainly not counted when they report 14% of active users regularly visit.
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post #24 of 35
In reality.. this is all Steve sitting in his big plush office madly clicking the refresh button as fast has his fingers will let him.
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post #25 of 35
I'm a teen who drives a Jetta and owns numerous macs, and uses ITMS relatively frequently. Looks like they know me well
post #26 of 35
sounds like apple users are 2.2 times as likely to buy a foreign car.
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post #27 of 35
Quote:
Originally posted by Ichiban_jay
sounds like apple users are 2.2 times as likely to buy a foreign car.

Not Apple....Frequent iTunes users....if Apple users had 14% of internet usage...now that would be an article. (smoked)
post #28 of 35
So I don't fit your demographic, I drive a Chevy, for one they are the best trucks available, and secondly they are desighned and built by hard working Americans! I myself am a blue collar american, but I love my apple and I love my iPod. There's no better way to handle a 16 hour shift in a loader filling trucks than an iPod and Bose noise cancelling headphones. Now I have to admit I've been thinking about buying my girlfriend a subaru STI so that I can drive it when I'm not working. Foreigners make a decent car, but you can't buy an un-amercan truck that can pull like a chevy with a duramax so I guess I do fit the stereotype... my truck has a turbo.
post #29 of 35
>apple users are 2.2 times as likely to buy a foreign car

iTunes Stores are present in many countries - it, as well as the Internet as a whole, is multinational - considering this, the use of the term "foreign car" (obviously from an US perspective) is strange.

Perhaps 100% of all German iTunes users have a VW or Audi - then Apple users obviously buy domestic made cars...

;-)
post #30 of 35
Just got to chime in about the car thing. My wife drives 2004 Chevy Colorado ( Mac User + iTunes) I drive a Pontiac 2004 GTO also a 79' Trans Am restored from the ground up (Mac User + iTunes) Business Partner Dodge Ram 1500 (Mac User + iTunes) Four of my freinds... Harley Davidson, Charger, Ford F-150 and last but not least Camaro SS (Mac Users + iTunes). It also maybe the area of the country we live.
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post #31 of 35
(shakes his head)

There's always someone. They hear, "Statistics show..."

They reply, "Oh yeah?! Well I don't fit those statitstics. I'm this and that. So there."

Generally, men are better drivers, but there ARE good women drivers.
Generally, women are better caretakers, but there ARE good male caretakers.
Generally, Mac users are more creative than PC users. There are a lot of creative PC users.
Generally, seatbelts are best. Sometimes seatbelts are a bad thing.

So you're different. Great. You're still not disproving the norm.
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post #32 of 35
Quote:
Originally posted by CosmoNut
Generally, men are better drivers

Are you sure about that? Women have fewer accidents.
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post #33 of 35
Quote:
Originally posted by e1618978
Are you sure about that? Women have fewer accidents.

I agree that the comparison isn't fair. Not only that, men are responsible for a gargantuan share of fatal accidents. If you get the DoT information, it seems the only way men as a group can be considered better drivers is when you lump in the long haul truckers, which is almost male-only, racking up an astronomical number of miles for the male category. Truckers, male or female, are often better because of experience, often racking up millions of miles with generally an exceptional safety record.
post #34 of 35
Quote:
Originally posted by ThinkExpensive
Not Apple....Frequent iTunes users....if Apple users had 14% of internet usage...now that would be an article. (smoked)

yeah, I know, I MENT to say APPLE
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post #35 of 35
On the VW thing, I've noticed some synchronicity between the Apple brand and the VW brand.

Both seem to garner more than their share of animosity from people that prefer other brands, based on some kind of emotional response to the perception that Apple/VW owners "care more about looks than performance", or "are willing to pay a premium for a misdirected sense of superiority" or, more generally, for picking a car/computer for reasons other than some imagined set of "robust" criteria, like raw power, or ease of mods, or stripped down functionality.

There's even that weird ambient notion that both VWs and Macs are "sorta gay", or "for women" presumably because real men eschew nice design.

Now admittedly, VW just came through a spate of reliability woes, but even here this is used as evidence of "style over substance".

I drive a Jetta because I really like the sum total experience, which is why I use a Mac. I certainly don't intend that as an attack on, or a demonstration of my superiority over, PC users and Honda drivers.
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