| Music Subscription Prices Need to Drop |
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A report by Parks & Associates suggests that portable music subscription services will need to drop below $10 dollars, for people to be interested. The report, which includes data from Parks Associates' multinational consumer study Global Digital LivingT, finds that 41% of MP3 player owners in the U.S. are not willing to spend more than $10 per month for a music service subscription. With comparable service costs presented in local currencies, 62% in the U.K. cap their interest at this amount, with 49% in France, 52% in Germany, and 56% in China expressing similar price inhibitions. Furthermore, on average, one-third of the MP3 player owners across these five nations believe these music services should be free. Given these findings, the entry of low-cost services such as Yahoo! Music could reshape the marketplace. Currently in the U.S., portable music subscriptions from companies including Napster or Rhapsody cost $14.95 per month. |