Survey finds music still #1 with iTunes shoppers

It wasn’t long ago that every dollar spent at the iTunes store was spent on music and video, but now mobile software apps are vying for consumers’ time and budget. Even so, a new study by The NPD Group finds that despite the app invasion, music still sets the beat with iTunes shoppers.

The NPD Group, a leading market research company, recently surveyed Apple iTunes, iPod, iPhone, and iPod Touch users to determine how they use iTunes to acquire music, video, games and other entertainment content. According to NPD’s “iTunes User Report,” apps are garnering a lot of attention among iTunes users, but music is still central to the iTunes experience.

According to NPD’s entertainment industry research, virtually all iPhone or iPod Touch users have downloaded an app for free, but 82% report actually purchasing music. More than half (56%) of iTunes buyers purchase music exclusively, and a majority of iTunes user search time tends to be focused on looking for music, as well.

“Sales growth in digital music has been slowing, and some of that decline might be related to the distraction from apps; however, iTunes shoppers are still completely engaged with music, whether it’s about listening, discovering or buying,” said Russ Crupnick, vice president and senior entertainment analyst for The NPD Group. “Apps and video certainly do compete for consumer dollars, but they can also be used to promote music and re-energize digital music and video download sales.”

The “iTunes User Report” also provided insight into the question of whether apps are valuable to users or mostly frivolous. Two out of three iPhone and iPod Touch owners who have downloaded apps report using them regularly, rather than just using them briefly. In addition, nine out of 10 have downloaded a free app, which Crupnick says, “points to a major up-selling opportunity to paid versions of the same app.” Plus 69% of iPhone and iPod Touch owners who have not yet paid for an app told NPD they are interested in possibly doing so in the future.

The NPD Group’s “iTunes Usage Report” is based on an online survey fielded to members of NPD’s online panel in May 2010. The report is based on 3,862 completed surveys from qualified respondents (age 13 and older). Each respondent reported using iTunes at least once in the past three months.

RBR-TVBR observation: Paid apps have to be really, really unique and attractive to gain much traction with consumers. But since radio and TV stations already know a lot about selling advertising, offering free-to-consumer, advertising-supported apps is clearly the way to get your station’s app on lots of iPhones and iPods in your market.

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