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New Akamai Index Measures Real-Time Global Consumption of Online Music
Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and business processes online, today released the Akamai Net Usage Index for Digital Music (www.akamai.com/netusageindex). The index tracks and benchmarks global Web usage patterns of visitors to more than 40 digital music websites, including music download sites, music destination sites, and live radio broadcast services, such as XM Satellite Radio, Clear Channel, Premiere Radio, MTV, Rediff.com and Napster, among others.
Data collected from the Index over the past three months shows key geographic patterns and insight into Web traffic trends associated with downloaded and streamed digital music:
North America, Asia, and Europe represent the bulk of visitor traffic to these sites
Daily peak traffic worldwide is more than half a million visitors per minute
Traffic peaks in North America and Europe tend to occur mid-week, while peaks in Asia and Australia come toward the end of the week
Sunday is consistently the slowest day for visitors to these sites
The Akamai Net Usage Index for Digital Music provides a global aggregate view of total visitors per minute, as well as a detailed view by continent, from a collection of digital music sites delivered by Akamai. All of the sites included in the index provide digital music streaming or downloads as their core business. Akamai’s Net Usage Index offers businesses real-time information about the usage habits of visitors to their sites, and an industry benchmark to measure against. Anyone interested in data from the Index can view an aggregate, real-time view of Web traffic patterns online.
Separately, Akamai conducted a survey of online consumers to better understand their digital music habits. Respondents ranged in age from 19 to 68 with a survey base of 200 people, 58% female and 41% male*. Individuals were questioned on how often they download music, how much they spend on music downloads, where and when they stream music online, where they listen to music downloads, and how many sources of online music they use.
Survey data reveal:
86% of respondents own a portable music device
76% of respondents spend $1-$5 on music downloads a week; 14% spend $5-$10; 9% spend $10-$20 a week. 90% of these respondents buy at least one song per week
82% of respondents prefer a pay-per-download model; 9% prefer ad-sponsored; and 9% chose subscription as their model of choice
55% of respondents listen to streaming music online, and 65% of those listen during the work day
42% of respondents are loyal to only one digital music source; 29% use two; and one respondent used 43 different sources for online music
"Not only has the Internet quickly evolved into a key distribution channel for music, it’s dramatically changing the way consumers learn about, share, and buy music online," said Brad Rinklin, vice president of Marketing at Akamai. "The Internet offers a platform to dramatically expand the global footprint artists and labels have to promote, distribute, and sell music, videos, and other rich media assets to millions of potential listeners and buyers. The Net Usage Index for Digital Music data will help the industry by providing empirical data on consumer behavior and online music."
"The momentum keeps building as we continue to see surges in both sustained streaming traffic as well as peak event-driven traffic as when we recently offered Jay-Z's new album for exclusive on-demand streaming," said Gerrit Meier, Senior Vice President and General Manager of Clear Channel Radio's Online Music and Radio unit. "As this index shows, there's no doubt that streaming has become an increasingly important part for our audience, which means we can not tolerate dropped broadcasts. Listeners expect the online experience to be as high in quality -- if not higher -- as over-the-air listening. With Akamai, we can be confident that no matter how high usage levels reach, we have a reliable infrastructure in place to handle the spikes and provide our customers with consistent and unwavering access to our content."
The online music market is expected to increase sevenfold by 2010, with revenues from music downloads and subscription services expected to top CD sales on the Web by next year, according to In-Stat Research. Given these projections, online music services need a robust, distributed infrastructure to handle growing user demand. Akamai is uniquely positioned to meet digital music distribution demands through its network of more than 25,000 servers worldwide that optimize access to popular content and ensure reliability and performance.
Akamai is a leader in business-critical solutions for media and entertainment companies, and works closely with customers to enable profitable new business models offering a flexible feature rich platform for managing, protecting, delivering and understanding digital assets online. Akamai provides a competitive advantage and increases the impact of media downloads and streams by ensuring sites perform flawlessly, even during unforeseen high-traffic events.
About Akamai’s Net Usage Indices
The Akamai Net Usage Index for Digital Music complements indices already available for News and Retail use online. Each index tracks online consumption for websites across a representative set of Akamai customers. All of the indices are intended to provide unique insight into the massive cultural and economic changes resulting from the ways people worldwide get news and information and act as consumers online. The Akamai Net Usage Indices measure Internet traffic dedicated to an aggregate set of Web sites, monitoring consumption by continent, as well as the world as a whole. Akamai’s Indices do not release specific customer data, but show an aggregate view of web traffic to the sites that Akamai supports. As with the other Indices, there is a downloadable widget available at the following link http://www.akamai.com/html/technology/visualizing_akamai.html
Akamai® is the leading global service provider for accelerating content and business processes online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. Leveraging the Akamai EdgePlatform, these organizations gain business advantage today, and have the foundation for the emerging Web solutions of tomorrow. Akamai is "The Trusted Choice for Online Business." For more information, visit www.akamai.com.
* Respondents were contacted via email and online banners ads, and directed to an online survey
Akamai Statement Under the Private Securities Litigation Reform Act
The release contains information about future expectations, plans and prospects of Akamai Technologies, Inc.'s management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the effects of any attempts to intentionally disrupt our services or network by unauthorized users or others, failure to have available sufficient transmission capacity, a failure of Akamai's network infrastructure and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.