Study: Consumer Taste Sharing Is Driving Online Music Biz

This kind of sharing any music exec could like … Derek Slater, a guest blogger here and a student fellow at Harvard’s Berkman Center, and Mike McGuire, a Gartner researcher and Berkman collaborator, have a new study about the influence sharing playlists and reviews is having on the music industry. It’s particularly timely given that it seems like we’re getting announcements about blends of social networking and music daily. They predict that by 2010 at least 25 percent of online music transactiobns will be propelled by sharing.

Some of their findings:
— nearly one-fourth of frequent online music users say the ability to share music is an important factor in choosing a music service.

— one-third of the 435 early digital media adopters surveyed by Gartner say they’re interested in online music discovery and recommendations powered by their own use.

— 10 percent say they often buy music based on recommendations.

Among other recommendations, Slater, who is going to work for soon, and McGuire suggest that rights holders “investigate the potential” of more flexible licensing and rules to enable sharing playlists or using music in personal media like podcasts.

David Weinberger wrote up Slater’s presentation at Berkman Tuesday.

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