London – Bundled digital
music services could potentially earn ISPs in the U.K. an extra $155 million in
revenues by 2013, according to a report conducted by Ovum and commissioned by
record label trade group BPI on behalf of major label Universal Music Group.
The figure depends on a "medium adoption" scenario from consumers; an
"accelerated adoption" scenario could up the figure to as much as $306
million in 2013. The "medium adoption" figure would also be
equivalent to 41% of the total U.K.
digital music market in 2009.

The report also found that bundled music services
could reduce ISP subscriber churn rates.

"A big ISP with around 3.5
million customers would generate indirect value of more than $30 million per
year if its bundled music service cuts churn by just 10%," the report

"It’s increasingly clear that it isn’t smart to be a ‘dumb pipe’. This
report shows that the revenue potential of digital music services alone makes
sound economic sense for ISPs," said BPI chief executive Geoff Taylor.  

Ovum recommends that ISPs offer a subscription
service that incorporates bundled download-to-own tracks and "additional
recommendation-driven retail."

"With the right service platform, user
experience and merchandising strategy, ISPs have an opportunity to reach a
green-field digital music market that mainstream download-to-own services such
as iTunes do not reach today," said Ovum principal analyst Adrian Drury.

ISPs were wary of the findings of the report, due to its ties to the major

"TalkTalk thanks the BPI for its strategic business advice. Though
some may question the value of such insight from an industry which has failed
to acknowledge the impact of new technology on its own business models and is
pressing the Government to criminalise its biggest customers," a
spokesperson for the U.K. ISP told TorrentFreak.


Related Links:

(BPI statement)


  1. The report coincided with a survey by government-backed watchdog Consumer Focus, which found a lack of public awareness about digital music services. It found that 40% of respondents were unable to name a single digital music service, while 85% of those who could name a digital service were only aware of iTunes or Amazon.

  2. Proposing an innovation, first comments are always No’s. Sometimes from competing technologies fighting for the same budget pool, but most No’s come from un-opened static people or organizations. However, inspite of the No’s, magically, Universe progresses in giant steps. Innovators, do not stop, present your cases logically against any obstacle, but on the other hand, with your openness be prepared to adjust or step down, if appropriate, for our mutual benefits.

  3. Bundled digital music services could be potentially earn ISPs in the U.K. an extra as much as $155 million in revenues by the year 2013, according to the report conducted by Ovum and commissioned by our record label trade group BPI on behalf of our major label Universal Music Group.Located in London one of the most romantic place.Thanks for your strategic business advice.More power to your site! G_d Bless everyone.