The 2007 Digital Music Survey reveals how social networks are changing the way music is discovered, purchased and consumed. See: http://www.entertainmentmediaresearch.com/ADMINNews/templates/emr.asp?articleid=38&zoneid=2 - Publicly available from the authors website: http://www.entertainmentmediaresearch.com/reports/EMR_Digital_Music_Survey2007.pdf

1. In association with
Contacts:
Peter Ruppert, Founder
peter.ruppert@entertainmentmediaresearch.com
Russell Hart, Executive Chairman
russell.hart@entertainmentmediaresearch.com
Steve Evans, Director of Research
steve.evans@entertainmentmediaresearch.com
+44 (0) 20 7240 1222
www.entertainmentmediaresearch.com
John Enser, Head of Music at Olswang
+44 (0) 207 067 3183
July 2007
John.enser@olswang.com

2. About Entertainment Media Research
Entertainment Media Research is the foremost research consultancy for
•
music & entertainment, founded in 1997 in anticipation of the digital
entertainment revolution.
The company is headquartered in London and serves the music,
•
broadcast, entertainment and consumer goods industries in the UK,
Western and Eastern Europe, USA and Asia.
Its business is the provision of research intelligence that enables
•
entertainment decision-makers to push their creative boundaries and
launch new products / services / ideas while increasing their marketing
effectiveness to achieve the greatest financial return.
The company is independent and privately-owned.
•
2

3. About Olswang
Olswang is a leading law firm renowned for its work in
•
telecommunications, media and technology, real estate and biosciences.
Founded in 1981, the firm has grown to a staff of more than 600 including
85 partners and has offices in London, the Thames Valley, Brussels and
Berlin. Olswang has an alliance with US firm Greenberg Traurig LLP
extending the firm's international capability and is acclaimed as a leading
employer in The Sunday times Best 100 Companies to Work For 2007,
for the third year running.
The firm's music team has established itself as a leading adviser to the
•
industry through its work with major record companies, trade bodies and
music users such as film producers and website operators. The firm's
client list features several of the biggest names in the business, including
record companies, collection societies and industry figures. We offer
these clients a broad-based service that takes in corporate and
commercial advice, dispute resolution, intellectual property, competition
and e-commerce.
(www.olswang.com)
3

4. Contents
• Main Themes
• Methodology & Sample Profile
• Detailed Analysis
Usage & Impact of Social Networks
Live Music
Sources
Purchase Behaviour
Legal Downloading
Personal Digital Music Players
Unauthorised Downloading
Mobile Downloading
Familiarity & Attitudes Towards DRM
4

5. Methodology & Sampling
• Annual survey encompassing a broad investigation of all
aspects of digital music in the UK today
• Robust online survey – more than 1,700 respondents
interviewed
• Broad sampling across the UK
• Fieldwork conducted June 2007
• Sample drawn from Entertainment Media Research’s UK
panel of 300,000 music consumers
• Survey length – 20 minutes
5

6. Executive Summary
6

7. Executive Summary
The Main Headlines
• The 2007 Digital Music Survey reveals how social networks are changing the way
music is discovered, purchased and consumed
• Legal downloading is increasing but at a slower rate than hitherto
• Unauthorised downloading is now at its highest level after last year’s signs of decline
– consumers are less concerned about prosecution
• Mobile music downloading creeps forward. Predictions are for further modest growth
unless providers change current market conditions – ease, fair pricing & clarity
• Significant increase in listening to radio on mobile phones – good news for
broadcasters and possibly an exciting revenue stream if / when DAB is rolled out
• UK live music scene is buzzing & demonstrably effective in boosting album sales
• Strong indications that live music webcasts are an attractive new revenue stream
• USB format is highly regarded and further trialling is recommended
• Continuing growth in personal digital player penetration with digital players on
mobiles this year’s highest gainers
7

8. Executive Summary
Massive Increase in Usage of Social Networks
• Overall usage of social networks increased to 86% in 2007 Vs 74% in 2006
• 2007 results reveal massive increases in usage of such sites
MySpace usage incidence 2006 = 35%; 2007 = 55%
YouTube 2006 =17%; 2007= 53% (more than tripled)
Facebook 24% have used it Vs insignificant 12 months ago
• Usage among teenagers aged 13-17 is remarkably high
77% have used MySpace
69% have used YouTube
61% have used Bebo
22% have used Facebook
8

9. Executive Summary
How Social Networks Compare in Importance for Music
• The survey reveals the massive importance of music in social networks
(particularly MySpace and Bebo). It is used to reflect personality and it a short-
cut to understanding the personality of people you meet on such sites
• People express themselves via music and they often make friends on the basis
of shared music tastes
• For those under 35, MySpace is clearly the most important site for music but its
importance is correlated with age eg over 35s are more likely to say YouTube is
the most important site for music
• Bebo is relatively strong among 13-17 year olds (16% rate it most important for
music)
• Facebook is relatively weak in its association with music (only 5% say it is the
most important social network for music)
9

10. Executive Summary
Music Used in Social Network Profiles
• 2 in 5 social networkers (39%) have embedded music into their profile
• For Bebo & MySpace, levels are even higher (65% and 63% respectively)
• Incidence of embedding music in a profile is directly correlated with age. 13-17
year olds most likely (65%) and 45+ year olds least likely (10%)
• Social networkers use music for public displays of their taste and to reflect their
personality – a means of self-expression through music:
76% of those embedding music in their MySpace profile do so “To show others what
music I’m into”
51% “To say something about my personality”
Above is also true for Bebo users (70% to show off taste, 54% to reflect personality)
Furthermore, 59% agree with the statement “I can tell a lot about someone by the
music they have on their MySpace profile”
10

11. Executive Summary
The Impact of Social Networks on Music Discovery & Purchase
• Social networks are impacting the way consumers discover, share and
purchase music
27% regularly discover music on the social network they love (33% MySpace users,
30% Bebo, 26% YouTube)
• Discovery is translating into purchase. 17% of social networkers state using
such sites has had a “massive” or “big” impact on the way they purchase music
10% have regularly purchased music discovered on these sites
13% regularly for MySpace
15% regularly for Bebo
7% regularly for YouTube
• Users of Bebo claim that site has more of an impact on music purchasing than
users of MySpace – 27% & 19% massive/big impact respectively (MySpace has
the greatest overall impact due to its size)
• Whilst such networks clearly influence purchase behaviour, more needs to be
done to make purchasing discovered music easier – 46% agreed with the
statement “I wish it was easier to purchase music that I find on these sites”
11

12. Executive Summary
Attitudes Towards Social Networks
• The rapid rise of Facebook illustrates how some networks can seemingly spring
from nowhere whilst others fall out of favour just as quickly
• The fickleness of today’s social networker is reflected in some of the prevalent
attitudes:
56% agree with “There are too many community websites now”
41% agree with “Very popular community websites are full of idiots
• Social network sites need to consider how they monetize their sites as 45%
agree with the statement “Popular community sites have been ruined by
advertising and big business”
12

13. Executive Summary
The Strength of the UK Live Music Scene & Its Impact on Album Sales
• There is a great deal of buzz in the music industry over the strength of live
music
• Clear evidence to demonstrate live music stimulates album sales:
57% often buy an artist’s album after seeing them live
61% prefer to buy an artist’s new album before seeing them live
• Compelling evidence to show the strength of live music in the UK currently:
64% think music is much more enjoyable when heard live than on CD
59% are more excited about seeing a band live than listening to their album
43% are now much more interested in going to festivals
36% go to a lot more concerts nowadays than a year ago
13

14. Executive Summary
Potential Revenue Stream for Live Music Webcasts
• 10% are very interested & willing to pay to see webcasts of live performances
as they happen
• A further 64% are interested in music webcasts but not prepared to pay
• Some willingness to pay for recorded live shows or classic live performances
(4%), but less attractive than live performance as they happen
• 8% are very interested and willing to pay a subscription to a service which offers
a menu/catalogue of live performance webcasts
• Levels of overall interest are very high indicating a potential mass market with at
least two business models
14

15. Executive Summary
The Attractiveness of the USB Format – Potential for Expansion
• The music industry has started to experiment with the USB stick format pre-
loaded with music
• Solid indications that consumers are familiar with the format (only 8% claim to
be unfamiliar)
• Encouragingly, significant consumer interest in the music format:
25% “Love” the format
33% “Like” the format
• The USB format has real potential if viable/profitable for the music industry
• USB format provides music in a way desired by some consumers and can
potentially act to boost overall sales. It is well worth trialling further
15

16. Executive Summary
Sustained Massive Increases in Ownership of Personal Digital Players
• Year-on-year, we track ownership of personal digital music players
• Continuing massive increases in penetration
2005 = 37% own
2006 = 57% own
2007 = 77% own
• The growth of the personal digital player market hasn’t yet reached saturation
• Penetration has increased across all demographics
• The biggest increases in brand share taken by mobile phone mp3 players
Nokia - up from 4% in 2006 to 15% in 2007
Samsung - up from 6% in 2006 to 14% in 2007
16

17. Executive Summary
PC Downloading Trends - Legal
• The survey identifies a slowdown in the increase in the population of legal
downloaders. 40% growth rate in users in 2006 reduced to some 15% in 2007
2005 = 35% had at least once purchased a legal download
2006 = 50% had at least once purchased a legal download (41% active, 9% stopped)
2007 = 58% had at least once purchased a legal download (47% active, 11% stopped)
• While the main purchase driver continues to be to get hold of music immediately,
the survey reveals a marked decline in the perceived price advantage of legal
downloads over CDs following the widespread decline in the high street price of
new releases
In 2006, 45% of legal downloaders cited price advantage of downloads as a reason for
purchase but by 2007 this had fallen to 31%, providing evidence that pricing for the
record industry is currently in a state of considerable flux
• One measure to combat this issue might be for digital retailers to consider
introducing variable pricing models
84% of consumers agreed that older digital downloads should be cheaper while
48% claimed they would be prepared to pay more for newly released tracks.
17

18. Executive Summary
PC Downloading Trends - Unauthorised
Further explanation for the trend in legal downloading is a noticeable increase
•
in piracy. After a decline in 2006, unauthorised downloading increased in 2007
to its highest level to date
2005 = 40% incidence
2006 = 36% incidence
2007 = 43% incidence
Survey reveals that piracy likely to increase further still
•
2005 = 6% of unauthorised downloaders state they will download more often
2006 = 8%
2007 = 18%
Teenagers most likely to download more often in the future but 18-34 yr olds
•
show the greatest increase in propensity to download more in the future
18-24s increased from 7% in 2006 to 19% in 2007
25-34s increased from 5% in 2006 to 16% in 2007
The explanation - consumers are now much less concerned about being
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prosecuted (42% gave this as a reason for downloading less in 2006 Vs only
33% in 2007)
18

19. Executive Summary
Mobile Downloading Trends
• The market for purchasing downloads directly to mobile phones increased from
11% in 2006 to just 16% this year
• The market outlook for the next 12 months remains broadly unchanged. Only
5% indicate that they are very likely to start (4% in 2006) which means growth
appears somewhat limited in the current environment unless providers can do
more to tackle the dominance of the iPod, improve the perception of sound
quality and utilise fair pricing models.
Radio on the Mobile Phone
• There has been a significant increase in consumers listening to the radio on
their mobile phone (from 15% in 2006 to 25% this year)
• This is clearly good news for the radio industry as it expands overall audience
size and listening hours
• Should DAB on mobiles roll out (currently DAB is only on one Virgin handset),
there are exciting opportunities to turn mobile radio listening into a potential
revenue stream with “Download this song” functionality
19

20. Executive Summary
DRM
• Digital Rights Management (quot;DRMquot;) is an increasingly hot topic for consumers.
63% of those aware of DRM believed that it was useful for protecting music
against file sharing but 68% of respondents who expressed an opinion agree
downloads are “Only worth purchasing if free of DRM.”
• Increased familiarity from 2006 (23% “know exactly” or have “good
understanding” of what it means in 2007 compared to 12% in 2006)
Familiarity is heavily skewed towards males
18-24 year olds most informed age group
• More people would prefer to pay a little extra for tracks free of DRM than would
prefer to pay the standard price and have restrictions (supporting EMI model)
39% prefer to pay more for DRM free
18% prefer standard price, but with DRM
• However, most people don’t know enough about DRM to have an opinion on
this choice and more needs to be done to inform consumers about DRM
20

21. Usage & Impact of Social Networks
21

22. General Usage of Social Networks
Do you ever use any of the following quot;communityquot; Highest For
websites? (Multi-code)
13-17 year olds (77%)
Myspace 55%
35%
53% 13-17 year olds (69%)
YouTube 17%
25-34 year olds (45%)
31%
Friends Reunited 28%
27% 13-17 year olds (61%)
Bebo 18%
18-24 year olds (45%)
24%
Facebook
13-17 year olds (32%)
22%
MSN Spaces 25%
Females (19%)
16%
MSN Groups 21%
Over 35 year olds (19%)
14%
Yahoo! Groups 15%
18-24 year olds (16%)
9%
Faceparty 9%
13-17 year olds (18%)
9%
hi5 11%
13-17 year olds (26%)
7%
Piczo 9%
6%
WAYN
5% 2007
Flickr
5%
Last.fm 2006
4%
Pandora
2%
Second Life
2%
StumbleUpon
2%
TagWorld
1%
Xanga
<1%
Tioti
<1%
Nuzizo
14%
None of these 26%
3%
Other (Please specify) 2%
22
Base: Q7, All respondents (1,721)

23. Most Important Social Network for Music
Which single community website is most important to you in terms of music?
2%
3%2%
Myspace Bebo
5%
MSN Spaces Friends Reunited
Yahoo! Groups MSN Groups
39%
YouTube Facebook
Last.fm Pandora
27%
Other
3%
7%
4%
3%
5%
% Most Important Total Male Female 13-17 18-24 25-34 35-44 45+
MySpace 39% 39% 38% 47% 44% 38% 28% 20%
YouTube 27% 27% 27% 24% 25% 26% 32% 35%
Bebo 7% 6% 8% 16% 7% 4% 5% 1%
23
Base: Q8, All using community websites (1,485)

24. Embedding Music in Social Network Profile
Have you ever embedded music into
your profile on this website?
Yes
% Embedding
music into profile
No
Bebo 65%
39% MySpace 63%
Facebook 29%
61%
% Embedding Male Female 13-17 18-24 25-34 35-44 45+
Yes 40% 38% 65% 47% 32% 18% 10%
24
Base: Q9, All using community websites (1,485)

25. Reasons for Embedding Music in Profile
What are the reasons you embedded music into
your profile on this website? (Multi-code)
Total MySpace Bebo
To show to others what music I'm into 72% 76% 70%
To say something about my personality 45% 51% 42%
Quick & easy access to music I really love 41% 34% 54%
To promote a friend's band / music 19% 25% 6%
To play music that I or my band has made 15% 15% 18%
To impress people I know 6% 6% 6%
Other 2% 2% 2%
25
Base: Q10, All embedding music in profile (581), MySpace (362), Bebo (66)

26. Impact of Social Networks on Purchasing Music
In your opinion, what impact has this website had on the way you purchase music?
Massive impact
5%
Big impact
12%
25%
Some impact
Little impact
No impact
Community
2006 2007
Website Impact
Massive impact 6% 5%
35%
22%
Big impact 17% 12%
Some impact 34% 35%
Little impact 21% 22%
No impact 22% 25%
Community websites have had the biggest impact on the way that 13-17 year
olds purchase music – 28% say they have had a massive/big impact
26
Base: Q12, All using community websites (1,485)

27. Impact of Social Networks on Purchasing Music
In your opinion, what impact has this website had on the way you purchase music?
Massive impact
Bebo 10% 17% 33% 15% 25%
Big impact
Some impact
Little impact
No impact
Myspace 5% 14% 42% 22% 18%
YouTube 4% 12% 34% 23% 27%
27
Base: Q12, All using each site as main for music

28. Music & Social Networks
Think about music you have heard on this website, please
tell us whether any of the following apply to you
Discovered music
27% 38% 12% 22%
Yes, regularly
there that I love
Yes,
Recommended artists I
occasionally
like to other people on 22% 28% 14% 37%
that site
Yes, rarely
No, never
Downloaded music for
11% 16% 13% 60%
done this
free from that site
Purchased downloads
10% 20% 14% 56%
or CDs discovered on
that site
28
Base: Q11, All using community websites (1,485)

29. Music & Social Networks
MySpace
Think about music you have heard on MySpace, please tell
us whether any of the following apply to you
Discovered music
33% 42% 13% 13%
Yes, regularly
there that I love
Yes,
Recommended artists I
occasionally
like to other people on 29% 33% 14% 24%
that site
Yes, rarely
No, never
Downloaded music for
13% 23% 17% 47%
done this
free from that site
Purchased downloads
13% 23% 16% 48%
or CDs discovered on
that site
29
Base: Q11, All using MySpace (574)

30. Music & Social Networks
Bebo
Think about music you have heard on Bebo, please tell us
whether any of the following apply to you
Discovered music
30% 42% 9% 18%
Yes, regularly
there that I love
Yes,
Recommended artists I
occasionally
like to other people on 29% 30% 14% 27%
that site
Yes, rarely
No, never
Downloaded music for
20% 13% 9% 58%
done this
free from that site
Purchased downloads
15% 12% 16% 57%
or CDs discovered on
that site
30
Base: Q11, All using Bebo (103)

31. Music & Social Networks
YouTube
Think about music you have heard on YouTube, please tell
us whether any of the following apply to you
Discovered music
26% 40% 13% 21%
Yes, regularly
there that I love
Yes,
Recommended artists I
occasionally
like to other people on 16% 27% 15% 42%
that site
Yes, rarely
No, never
Downloaded music for
8% 12% 10% 70%
done this
free from that site
Purchased downloads
7% 21% 16% 56%
or CDs discovered on
that site
31
Base: Q11, All using YouTube (403)

32. Attitudes Towards Social Networks (1 of 2)
What is your opinion of community websites (like MySpace, Facebook etc)?
Please tell us if you agree or disagree with the following…
% Strongly Agree
(13-17 year olds)
There are too many community websites
20% 3%14% 7% 25%
19% 37%
now Strongly agree
Watched music videos on community Agree
35%
18% 42% 13%5% 17%
6%
sites
Disagree
I'd really miss them if they disappeared 16% 32% 20% 10% 9% 12% 28%
Strongly disagree
Can tell a lot about someone by the Don't know
16% 43% 16% 6%8% 10% 25%
music they have on their Myspace profile
Does not apply to me
Popular community sites have been
15% 30% 26% 5%12% 12% 22%
ruined by advertising & big businesses
I enjoy surfing these websites looking for
14% 39% 19% 8%7% 13% 25%
new music
Very popular community websites are full
18%
12% 29% 28% 7%11% 12%
of idiots nowadays
Wish it was easier to purchase music
12% 34% 21% 5%12% 16% 18%
that I find on these sites
32
Base: Q13, All respondents (1,721)

33. Attitudes Towards Social Networks (2 of 2)
% Strongly Agree
(13-17 year olds)
Watched live performances by artists on
25%
11% 25% 29% 9%7% 20%
community sites Strongly agree
Type of music someone's into is 1st Agree
19%
thing I do when I look at someone's 10% 26% 28% 10%6% 19%
Myspace profile Disagree
I've made 'friends' with people on sites
Strongly disagree
20%
10% 25% 25% 11%7% 22%
like Myspace because shared an
interest in same type of music
Don't know
People have asked me where I found
18%
9% 23% 26% 9%6% 26% Does not apply to me
music that I have on my Myspace profile
Popular community websites are not as
9%
7% 23% 34% 6% 17% 13%
good as they used to be
People having music on their Myspace 8%
6% 16% 42% 16% 12% 8%
profile has become boring now
People having music on their Myspace 6%
5% 18% 39% 15% 14% 8%
profile is a fad
33
Base: Q13, All respondents (1,721)

34. Attitudes Towards Social Networks (1 of 2)
Excluding “Does not apply to me”
What is your opinion of community websites (like MySpace, Facebook etc)?
Please tell us if you agree or disagree with the following…
I've watched music videos on community
22% 51% 15% 6%7%
sites
Strongly agree
There are too many community websites
20% 40% 22% 3%15%
now Agree
Disagree
I'd really miss them if they disappeared 18% 36% 23% 12% 10%
Strongly disagree
You can tell a lot about someone by the
18% 48% 18% 7% 9%
music they have on their Myspace profile
Don't know
Very popular community websites have
been ruined by advertising and big 17% 34% 30% 6% 13%
businesses
I enjoy surfing these websites looking for
16% 45% 22% 9% 9%
new music
I wish it was easier to purchase music that I
14% 40% 25% 6% 14%
find on these sites
Very popular community websites are full of
14% 34% 32% 8% 13%
idiots nowadays
34
Base: Q13, All respondents excluding “Does not apply to me”

35. Attitudes Towards Social Networks (2 of 2)
Excluding “Does not apply to me”
I've watched live performances by artists on
14% 31% 36% 11% 9%
community sites
Strongly agree
Seeing what type of music someone is into
Agree
13%
is one of the first things I do when I look at 32% 35% 12% 8%
someone's profile
Disagree
I have made 'friends' with people on
community websites because we shared an 13% 33% 32% 14% 9%
Strongly disagree
interest in music
People have asked me where I found music Don't know
12% 32% 36% 12% 9%
that I have on my Myspace profile
The very popular community websites are not
8% 26% 39% 7% 19%
half as good as they used to be
People having music on their Myspace
6% 18% 46% 17% 13%
profile has become boring now
People having music on their Myspace
6% 19% 43% 17% 15%
profile is a fad
35
Base: Q13, All respondents excluding “Does not apply to me”

36. Usage of Artists’ Websites
Have you ever downloaded or streamed music from a band's or artist's website?
Please tick any that apply.
Behaviour 2006 2007
Yes - streamed from
27%
sites like myspace Yes - streamed from
17% 27%
community sites like
MySpace etc
Yes - downloaded Yes - downloaded from
13% 18%
from sites like 18% community sites like
MySpace etc
myspace
Yes - streamed directly 30% 25%
from band/artist's own site
Yes - streamed
directly from 25% Yes - downloaded directly 19% 18%
from band/artist's own site
band/artist's own site
57% 55%
No
Yes - downloaded
directly from 18%
band/artist's own site
No 55%
36
Base: Q61, All respondents (1,721)

37. Live Music
37

38. Attitudes Towards Live Music
Please tell us if you agree or disagree with the following statements about live music
Music is much more enjoyable when performed
28% 36% 21% 4% 4%
live than on CD
Strongly agree
I'm much more excited about seeing a band live
27% 32% 23% 4% 7%
Agree
than listening to their album
I'm much more interested in going to festivals
Disagree
20% 23% 28% 9% 14%
than used to be
Strongly disagree
I prefer to buy a band's new album before
16% 45% 19% 4% 8%
seeing them live
Don't know
I often buy a band's album after seeing them
16% 41% 19% 6% 12%
It doesn't apply to me
perform live
I go to a lot more concerts now than I did a year
14% 22% 35% 13% 13%
ago
I regularly watch recordings of bands playing live
11% 27% 34% 11% 13%
gigs/concerts online
It's easy to buy tickets to see my favourite bands
8% 39% 26% 9% 11%
play live
Regularly watch recordings of gigs on video
5%10% 36% 19% 26%
iPod, mobile or similar device
38
Base: Q5, All respondents (1,721)

39. Interest in Webcasts
How interested, if at all, are you in watching the following webcasts?
By webcasts we mean artist/band performances that you can watch online
Webcast of live shows as they happen 10% 31% 33% 8%
18%
Subscribe to a service that offers a series of
20% 30% 10%
8% 31%
Very interested and
webcasts that I can choose from
prepared to pay for it
Very interested, but not
Behind the scenes footage of tours/concerts etc. 6% 23% 35% 10%
26%
prepared to pay for it
Interested but not
Exclusive band interviews 4% 22% 35% 10%
29%
prepared to pay for it
Not at all interested
Webcasts of recently recorded live shows 4% 32% 38% 9%
17%
Not sure
Webcasts of classic live shows from the past 4% 28% 40% 9%
20%
Footage of band rehearsals 3% 20% 28% 10%
39%
39
Base: Q6, All respondents (1,721)

40. Importance of Music
40

41. Sources
41

42. Sources of New Music
55%
FM/AM Radio 60%
37%
On music TV 42%
24%
From friends 22%
8%
In a shop/music store 7%
7%
On community websites 4%
7%
DAB radio 5%
6%
Specialist music press 5%
6%
Mainstream terrestrial TV channels 6%
5%
Artist/fan web sites 5%
5%
Internet radio 5%
5%
Legal download site 3%
2007
4%
In a club 4%
3% 2006
Advertisement 4%
3%
General press 3%
3%
File sharing service 2%
3%
In a bar 2%
2%
Mail order site like Amazon 2%
2%
Music sites like Launch.com 2%
2%
Message boards/chat rooms 2%
2%
Movies 2%
1%
From Podcasts / blogs 1%
1%
News or recommendations using IM 1%
2%
1%
Other
42
Base: Q4, All respondents (1,721)

43. Devices Used to Listen to Radio
Which of the following do you use to listen to the radio? (Multi-code)
84%
FM Radio
88%
44%
Radio on the Internet
47%
39%
Satellite / cable TV
41%
25%
Mobile phone 2007
15%
2006
25%
DAB Radio
19%
17%
AM Radio
18%
4%
Don't listen to radio
43
Base: Q3, All respondents (1,721)

44. Purchase Behaviour
44

45. Future CD Purchase
Will you continue to buy CDs in the future?
Yes, more than I used to
5%
12%
Yes, at the same rate as before
24% Yes, but fewer than before
No
Behaviour 2005 2006 2007
59%
9% 10% 12%
Yes, more than I used to
57% 64% 59%
Yes, at the same rate as before
30% 21% 24%
Yes, but fewer than before
4% 6% 5%
No
45
Base: Q58, All respondents (1,721)

46. Preferences & Attitudes Towards CD Albums
Like albums just the way they are at Strongly agree
29% 55% 14%2%
the moment
Agree
Disagree
Like albums with added extras such Strongly disagree
as videos & ringtones and I'd be 23% 33% 31% 12%
willing to pay a little extra to get them
Prefer albums with fewer tracks, but
with more quality tracks that are likely 11% 30% 46% 13%
to be released as singles
Prefer albums with fewer tracks that
7% 16% 59% 18%
cost less
46
Base: Q29, All respondents (1,721)

47. Releasing Music on USB stick
What do you think of the concept of USB stick as a format for
releasing music? It's a USB memory stick that contains MP3 files of
the songs.
8%
3%
25%
5% Love it
Like it
Neither like nor dislike
Dislike
26%
Hate it
Never heard of it
33%
47
Base: Q16, All respondents (1,721)

48. Legal Downloading
48

49. Incidence of Legal Downloading
Have you ever purchased a legal music download?
Yes
12%
Yes but I have stopped
No and I have no intention of doing so
47% No but I intend to soon
30%
Legal music
2005* 2006 2007
download
Yes 41% 47%
35%
11% Yes, but have stopped 9% 11%
No & no intention 37% 30%
65%
No, but intend to 14% 12%
* NB: Question was re-worded slightly from 2006
Authorised
Male Female 13-17 18-24 25-34 35-44 45+
Download
51% 42% 53% 53% 50% 36% 28%
% Yes (43% in ‘06) (39% in ‘06) (43% in ‘06) (46% in ‘06) (42% in ‘06) (36% in ‘06) (25% in ‘06)
49
Base: Q48, All respondents (1,721)

50. Reasons Not to Purchase Legal Downloads
2006
Prefer CDs, LPs, etc 53%
54%
30%
27%
Too expensive
21%
20%
Concerned about viruses/security
21%
19%
Can't be bothered
19%
19%
Need more info about how it works
18%
18%
Don't have credit card
12%
14%
Too many technical problems
14%
No way of paying for them 16%
13%
Concern DRM limits transferability 11%
10% 9%
Download music from file-sharing sites
10%
9%
Unaware of legal download sites
8%
9%
Takes up too much time
9%
Never buy anything online 6%
9% 9%
Friends give me my music
6%
8%
Technology puts me off
6%
5%
Intend to, but not got around to it
6%
5%
Sound quality not good enough
5%
I just do not buy music 6%
4%
Would if find d/l music that interests me 5%
9%
4%
Digital players still too expensive
5%
3%
No broadband at home
1%
Don't have own pc 2%
<1%
I rent/subscribe instead of buying
50
Base: Q49, All 6%
None of the above
non-purchasers

51. Frequency of Purchasing Digital Downloads
How frequently do you purchase digital downloads?
2% 8%
22% Frequency 2006 2007
10% 2% 2%
Every day
10% 8%
Several times each week
10% 10%
Once a week
11% 13%
Once every two weeks
13%
10% 15% 14%
Once a month
28% 21%
Once every few months
12% 10%
I only ever did it once
I have not done it for at 12% 22%
14% least 6 months
21%
Every day Several times each week
Once a week Once every two weeks
Once a month Once every few months
I only ever did it once I have not done it for at least 6 months
51
Base: Q51, All who purchase legal downloads (990)

52. Quantity of Digital Downloads Purchased
How many tracks have you legally purchased so far through a digital download store?
1
2%
2% Quantity 2006 2007
3%
5% 2 to 5 7% 22%
22% 1
15% 18%
2 to 5
6 to 10
10% 13% 15%
6 to 10
11 to 20 14% 12%
11 to 20
21 to 50 15% 11%
21 to 50
15% 10%
51 to 100
51 to 100
11% 8% 5%
101 to 200
18% 101 to 200 7% 3%
201 to 500
5% 2%
201 to 500 501 to 1,000
2% 2%
12% More than 1,000
501-1000
15%
More than 1000
52
Base: Q52, All who purchase legal downloads (990)

53. Reason for Purchasing Downloads
Please select from the list below the main reasons WHY you purchase legal
downloads. Please select all that apply.
58%
To get hold of music immediately
37%
Only one or two songs on the album interest me
31%
It's cheaper than buying CDs/LPs etc
27%
The track is not yet available in the shops
26%
To find out if I want to buy the CD album
22%
It's safer than using a file-sharing site
22%
Because it's difficult to find in the shops
18%
The music is only available as a download
2007
8%
It's faster than using a file-sharing site
2006
8%
I now buy all my music in digital format
8%
I only want to listen to the music a few times
I used to get music from unauthorised sites but now I 7%
prefer to purchase it
6%
I can't be bothered to rip my CD collection
6%
The CD is copy-protected and I can't rip it
5%
It's a cool thing to do
4%
The music isn't good enough to add to my CD collection
6%
Other
53
Base: Q53, All who purchase legal downloads (990)

54. Behaviour After Downloading
When you legally download music do you then usually…?
Listen to the music on
54%
your computer
Listen to the music on
43%
your computer and
Behaviour 2006 2007
portable device
Listen to the
44% 54%
music on your
computer
40%
Burn the music onto a CD
Listen to the
music on your 38% 43%
computer and
Listen to the music on a portable device
40%
portable device
Burn the music 39% 40%
onto a CD
Listen to the
Transfer music to your 27% 40%
music on a
19%
mobile phone portable device
Transfer music
10% 19%
to your mobile
phone
4%
Other
54
Base: Q54, All who purchase legal downloads (990)

55. Intentions When Visiting Legal Download Sites
Thinking of the last 3 visits you made to a legal download site, did you…? Please
select all that apply.
59%
Go with the intention
of just browsing the
56%
music
41%
Go knowing what you
wanted to buy and
44%
bought it
Go knowing what you 22%
wanted to buy but 2007
found it wasn't
23% 2006
available
9%
Buy something
recommended on the
10%
site
7%
Go with the intention
of reading interviews
6%
etc
55
Base: Q55, All who purchase legal downloads (990)

56. Appeal of Different Methods of
Downloading Purchased Music
How appealing, if at all, is purchasing music through the following devices?
Downloading to my
computer to transfer 24% 28% 19% Very appealing
12% 11% 5%
to my mobile
Appealing
Downloading from
Neither nor
DAB radio to my 15% 24% 28% 14% 8% 11%
computer
Unappealing
Downloading from
Very unappealing
DAB radio to my 8% 13% 33% 20% 15% 11%
mobile
Don't understand
concept
Downloading directly
40% 38% 12% 4% 2%
3%
to my computer
Downloading directly
13% 20% 25% 20% 17% 5%
to my mobile
56
Base: Q22, All respondents (1,721)

57. Downloading Behaviour
How often do you download music?
More than once
Transfer music from pc
18% 19% 12% 11% 7% 8% 24%
per week
to digital music player
About weekly
Download authorised
13% 13% 10% 12% 12% 16% 24%
tracks for free
About fortnightly
Transfer music from pc About monthly
9% 8% 7% 9% 9% 15% 43%
to mobile
Less than
monthly
Download
9% 7% 5% 5% 5% 17% 51%
unauthorised tracks
Rarely
Purchase authorised Never
8% 10% 9% 10% 10% 20% 33%
downloads
57
Base: Q23, All respondents (1,721)

58. Tracking Download Behaviour
Transfer from PC
Transfer PC to Download authorised
Download digital player for free to mobile
Behaviour
2006 2007 2006 2007 2006 2007
More than once a week 19% 18% 12% 13% 8% 9%
About weekly 15% 19% 10% 13% 6% 8%
About monthly 11% 11% 11% 12% 6% 9%
Less than monthly 7% 7% 11% 12% 7% 9%
Rarely 8% 8% 18% 16% 10% 15%
Never 29% 24% 30% 24% 58% 43%
Download unauthorised Purchase authorised
Download tracks downloads
Behaviour
2006 2007 2006 2007
More than once a week 7% 9% 6% 8%
About weekly 5% 7% 7% 10%
About fortnightly 3% 5% 7% 9%
About monthly 4% 5% 9% 10%
Less than monthly 5% 5% 10% 10%
Rarely 15% 17% 18% 20%
Never 60% 51% 43% 33%
58

59. Impact of Downloading on CD Purchasing
Which one of the following best describes the effect, if any,
of downloading on the number of CDs you purchase?
1%
3% Stopped/almost stopped buying CDs as a result
14%
7%
Buy fewer CDs as a result
Has not affected number of CDs I buy
Buy more CDs as a result
Buy many more CDs as a result
Never bought CDs before started d/l-ing
30%
45%
Impact 2006 2007
Stopped/almost stopped 13% 14%
Buy fewer 30% 30%
Not affected 43% 45%
Buy more 9% 7%
Buy many more 4% 3%
Never bought CDs 1% 1%
59
Base: Q24, All downloaders

60. Impact of Downloading on Overall Music Spend
Now think of all the downloading you have done (including both
authorised & unauthorised tracks and music shared with your
friends) and tell us which one of the following best applies to you
Downloading has increased the total
amount of money I spend on music
22%
24%
Downloading has had no effect on the total
amount of money I spend on music
Downloading has decreased the total
amount of money I spend on music
Music Spend
2006 2007
Impact
Increased 24% 22%
54% No effect 53% 54%
Decreased 23% 24%
60
Base: Q25, Ever downloaded

61. Purchase Downloads – Current Spend
How much have you spent on buying legal downloads in the past 6 months?
Nothing
4%
8% £1 per month
28% £2 to £5 per month
13% £6 to £10 per month
£11 to £20 per month
£21 to £40 per month
More than £40 per month
17% 10%
Spend 2006 2007
16% 28%
21% Nothing
10% 10%
£1 per month
23% 21%
£2 to £5 per month
17% 17%
£6 to £10 per month
16% 13%
£11 to £20 per month
11% 8%
£21 to £40 per month
5% 4%
More than £40 per month
61
Base: Q56, All who purchase legal downloads (990)

62. Future Legal Download Spend
How much are you likely to spend on buying legal downloads in the NEXT 6 months?
3% Nothing
7%
£1 per month
10% £2 to £5 per month
£6 to £10 per month
£11 to £20 per month
46%
13% £21 to £40 per month
More than £40 per month
Intended Spend 2006 2007
14%
53% 46%
Nothing
7% 5% 7%
£1 per month
14% 14%
£2 to £5 per month
9% 13%
£6 to £10 per month
9% 10%
£11 to £20 per month
6% 7%
£21 to £40 per month
3% 3%
More than £40 per month
62
Base: Q57, All respondents (1,721)

63. Digital Download Pricing Attitudes
How much do you agree with each of the following statements about purchasing
digital downloads?
Older tracks should be Strongly
cheaper than new 48% 36% 8% 3%5% agree
releases
Somewhat
agree
There should be one
34% 37% 19% 3%7%
price for all tracks
Somewhat
Tracks by disagree
new/unknown bands
should be cheaper than 24% 36% 24% 9% 8%
those by successful
Strongly
bands
disagree
I'm prepared to pay
more for newly 11% 37% 30% 15% 7%
Don't know
released tracks
63
Base: Q50, All who purchase legal downloads (990)

64. Attitudes Towards Single Track Downloads
Easy to transfer to a personal digital player 27% 37% 6%
2% 28%
Strongly agree
Great for making own playlists 27% 44% 5% 22%
1%
Agree
Easy to purchase 22% 45% 8% 23%
2%
Disagree
Great way to find out about less familiar artists 22% 46% 8%
2% 22%
Strongly disagree
Easy to burn to CD 21% 42% 8%
3% 27%
Don't know
Great way of trialling an album before buying 21% 44% 9%2% 24%
Only worth purchasing if free of DRM 18% 23% 17% 3% 40%
Just as good audio quality as CDs 17% 41% 15% 5% 22%
Easy to share/swap with friends 17% 33% 13%5% 32%
Easy to transfer to a mobile 17% 32% 8%3% 41%
Too expensive 14% 25% 31% 5% 25%
Good value for money 14% 29% 24% 8% 25%
Great to collect 12% 36% 21% 9% 22%
Just as good value for money as CDs 11% 31% 27% 8% 24%
64
Base: Q28, All respondents (1,721)

65. Attitudes Towards Single Track Downloads
Excluding “Don’t Knows”
Easy to transfer to a personal digital player 37% 52% 8%3%
Strongly agree
Great for making own playlists 35% 57% 7%
2%
Only worth purchasing if free of DRM 29% 39% 28% 4% Agree
Easy to purchase 29% 59% 10%
2%
Disagree
Easy to burn to CD 29% 57% 11%4%
Strongly disagree
Great way to find out about less familiar artists 29% 59% 10%3%
Easy to transfer to a mobile 28% 54% 14% 5%
Great way of trialling an album before buying 28% 58% 11%3%
Easy to share/swap with friends 25% 49% 19% 7%
Just as good audio quality as CDs 22% 52% 19% 7%
Too expensive 19% 34% 41% 6%
Good value for money 19% 39% 32% 11%
Great to collect 16% 46% 27% 11%
Just as good value for money as CDs 14% 40% 35% 11%
65
Base: Q28, Excludes Don’t Knows

66. Downloading Music Videos
Thinking about downloading music videos, have you
ever done any of the following? (Multi-code)
51%
None of these
Downloaded music videos to a
35%
computer for free
Downloaded music videos to a
16%
mobile phone for free
Purchased music videos
15%
downloaded to a computer
Download… 2006 2007
Purchased music videos
None of these 59% 51%
12%
downloaded to a mobile phone
To a computer for free 30% 35%
To a mobile for free 9% 16%
Purchased to PC 10% 15%
Purchased to mobile 9% 12%
66
Base: Q30, All respondents (1,721)

67. Personal Digital Music Players
67

68. Ownership of Personal Digital Music Players
Yes No
2007
2006
2005
77%
57%
37%
63%
43%
23%
68
Base: Q33, All respondents (1,721)

69. Demographics of Personal
Digital Music Player Owners
2006 2007
Male
Female
52% 51%
49%
48%
13 to 17 22%
22%
18 to 24 7% 7%
25 to 34
35 to 44 9% 12%
45+
34%
37%
24% 25%
69
Base: All respondents

70. Personal Digital Music Players
– Market Penetration
2007
2006
Own
Own Used to Own Intend to purchase in next 6 mths
Total 57% 11%
7% Total 77%
Male 9%
61% Male 81%
7%
Female 53% 7% 12%
Female 74%
5%
13 to 17 75% 10% 13 to 17 92%
18 to 24 63% 8% 9%
18 to 24 85%
25-34 54% 14%
6% 25-34 76%
35-44 50% 5% 12%
35-44 68%
45+ 32% 4% 15%
45+ 52%
70
Base: All respondents

71. Brands of Personal Digital Music Players
Which brand(s) of personal digital music player do you own? If your
mobile has a built-in music player then include this as well. (Multi-code)
2006
Apple iPod 42% 40%
22%
Sony Ericsson -
15%
Nokia 4%
14%
Samsung 6%
11%
Creative 12%
8%
Sony 15%
-
6%
Motorola
-
4%
LG
4% 5%
Philips
2%
iRiver 2%
1%
Ministry of Sound 3%
1%
Panasonic 1%
1%
Sandisk Sansa -
<1% 2%
Rio
<1%
NEC -
<1%
iAudio 1%
<1%
Microsoft Zune -
12%
It is unbranded
8%
Other
71
Base: Q34, All owners of digital music players