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January 30, 2008, 12:58 pm

Survey: 49% of U.S. tweens buy music on iTunes

picture-73.pngDespite the easy availability of pirated music, most U.S. kids in the 9-to-14-year-old “tween” bracket are now paying for at least some of their music downloads.

That’s the key finding of “Kids & Digital Content,” a survey issued Wednesday by the NPD Group. According to NPD, 70% of U.S. tweens download digital music in an average month. Among them, nearly half (49%) used Apple’s (AAPL) iTunes to get their songs and 16% used MySpace (NWS).

However, the second most popular source of digital music, used by more than a quarter (26%) of the group, was the peer-to-peer file-sharing service Limewire.

“The recording industry has focused on high-profile litigation programs as a deterrent, and education initiatives to communicate alternatives to illegal music file sharing,” said NPD vice president Russ Crupnick. “Findings in this report suggest that the industry can still do more to promote specific ways children can obtain digital music legally, through pre-paid accounts and gift cards.”

Of course, all this assumes that the 3,376 kids who sent in completed surveys told the NPD the truth, not what they thought the survey group wanted to hear.

What percentage of US tweens own an iPod? Could it be — lemme guess now — about 49%?
Bottom line, if my instincts are good here (I own a 14-year-old), is that a buck a song is peanuts for kids who own computers and music players. Especially true with iTunes gift cards being no-brainer birthday presents.

Ease of use is 90% of the game (look no further than the iPod), and the other 10% is availability. The kids’ mindset is that the Beatles, inconveniently, are “on Limewire”.

(I’ve taught my daughter that when iTunes fails her, a used CD on eBay is just as economical, and often cheaper.)

Posted By Jim Demers, NY NY : January 31, 2008 3:08 pm

hmmm, Limewire?

I find that funny?!

My reason is that I used to use Limewire and it was the same structure as the early Napster. Peer to peer file sharing, i.e. pirating.

I know I got a some of my music there.

But here are the demographics that music co.s need to think about and not us old folks.

Apple focuses all of it’s R&D, marketing, sales, etc… on existing Apple purchasers as well as the “UP and Coming.”

This is why market share is going up at a steady pace since the entrance of the iPod.

Ease of use. Kids like easy, cool, slick, rad, cool, said that, equipment.

PC’s aren’t cool. Apple is.

Apple wrangles them in young, and markets to them as they grow with great products that work. Not only in the home, or school market but in the business world too.

A paradyme shift in the work place is happening with CIO, IT managers and techs.

Macs work. Macs are better. Macs require less support and productivity has been proven greater on Apple computers than PC’s.

REason? Mac are less frustrating as most kids and or adult don’t require IT degree to keep their machines running.

Posted By Dennis, Phoenix Arizona : January 31, 2008 1:23 pm

Actually, kids can be more honest than adults. Maybe the 12-14 year olds have learned the adult ways of lying just to look good, or have recognized the need to doubt the privacy of their answers, but the 9 to 11 year olds probably just put down whatever came to their mind – which is likely the truth.

For example, if those kids wrote about iPod, Apple, or even Mac, it would be a lot more positive and honest than Mr. DeWitt, who as an adult getting paid to do a job that earns Fortune advertising dollars, spends all his time thinking of ways to spin the facts to generate some controversy, which, most of the time, means making Apple look bad.

Posted By mark : January 31, 2008 11:13 am

“ex ped: Color me cynical, but it seemed to me that asking minors to own up to quasi-criminal behavior in an e-mail survey is not quite the same as estimating the number of iPhones stuck in channel.”

I think many of the others who post in your articles have already coloured you cynical. I understand your point, but the statement really comes off with the wrong impression.

Posted By Chris, Winnipeg Canada : January 30, 2008 5:04 pm

How are these 9 year olds buying online from iTunes? With their credit cards??? Useful info would be how much is via iTunes gift cards. Sure if someone gives them a gift card they will use it.

Posted By Mitch, Boston, MA. : January 30, 2008 5:03 pm

“Of course, all this assumes that the 3,376 kids who sent in completed surveys told the NPD the truth, not what they thought the survey group wanted to hear.”

Now THIS is an inappropriate comment. I’ve glazed over the articles you’ve posted before and had a little chuckle at the comments directed your way, mostly thinking the trash talk was over the line, but this deserves a rebuttal.

Talk about trying to fudge the results to suit your view point. Why not include that statement whenever you quote any statistic?

ex ped: Color me cynical, but it seemed to me that asking minors to own up to quasi-criminal behavior in an e-mail survey is not quite the same as estimating the number of iPhones stuck in channel.

Posted By Chris, Winnipeg Canada : January 30, 2008 4:43 pm

So, the sky over apple isn’t falling? I’m so confused.

Posted By Chris, Winnipeg Canada : January 30, 2008 3:22 pm

“Parents are very first teachers of their children. Their actions are watched silently by them.”

True, but kids learn at least as much from their peers–ask any middle-school teacher.

Posted By George, Eugene, OR : January 30, 2008 2:57 pm

Parents are very first teachers of their children. Their actions are watched silently by them.

Posted By Joe, Fontana CA : January 30, 2008 1:24 pm
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Philip Elmer-DeWittSilicon Valley veterans like to joke that Steve Jobs must be surrounded by a reality distortion field; if you get too close to him, you start to believe what he's saying. Thanks to the success of the iPod, the launch of the iPhone and the renewed interest in the Mac, Apple has made believers out of millions of customers - and made a lot of investors rich. But Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple - and watching Steve Jobs operate - since 1982, first for Time Magazine, then for Business 2.0, and now for Fortune.
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