Summary update on legitimate services

Headline Statistics

There are more than 50 established online music sites in Europe and over 100 globally. IFPI's www.pro-music.org site now features a worldwide directory of legal online services
There are now at least 300,000 tracks on offer across Europe. In UK there are 700,000 tracks available following the launch of Napster in the UK in May.
Subscribers to the online music sites partnered by OD2 in Europe totalled 830,000 at the end of the the first quarter 2004 - up 380,000 at the end of September 2003
In the UK market alone there were sales of half a million downloads in the first five months of the year
Napster launched in the UK and Canada in May
Current catalogue available in the US is over 700,000 tracks

The Growth of the online music market

Summary of Developments in the US
ITunes celebrated its first year in April, announcing sales of 70 million downloads, and the launch of iTunes 4.5, with added features. Real announced in May that Rhapsody had reached 450,000 paid subscribers (including RadioPass). MusicNet achieved significant steps forward, setting up partnerships with Virgin Digital and Cflix. Sony Connect launched in May along with Napster 2.0, Musicmatch and BuyMusic.com in the US. The minimum offering for US-based services is now 700,000 tracks.

Online music moves to Europe
The market for legitimate online music services is taking firm hold in Europe. The number of tracks available rose from around 200,000 in 2003 to 300,000 - up by more than a third. In the UK the launch of Napster in May 2004 more than doubled the available catalogue - to 700,000.
In Europe, over 800,000 people are already signed up to more than 50 different legal sites. Over 500,000 tracks are now downloaded on average each month across Europe and this figure is rising by approximately 30% a month. These figures are expected to rise sharply as Napster, iTunes and Sony Connect expand into Europe.

Highlights of new online music services in 2004
In the first half of 2004, there were a number of new service launches or significant developments in existing services around the world, most notably the following:

MyCokeMusic.com launched in the UK in January
MusicNet and Virgin Digital announced a new partnership, confirming Virgin's commitment to the online market
Puretracks, the Canadian online music service surpassed the one million downloads mark in February 2004
Napster 2.0 launched in the UK and Canada in May
Sony Connect launched in US in May
In Australia, BigPondMusic.com upped its catalogue to 250,000 in March
In Germany, AOL Germany launched a new service with over 100,000 tracks. T-Online expanded the catalogue of its new service Musicload to 100,000 songs, following its launch in February 2004
Phonofile launched in Denmark on June 7 providing a new service where the entire catalogue of Danish music can be legally downloaded

New services due to launch

Sony Connect due to launch imminently in the UK, France and Germany
Apple iTunes poised to launch in European countries