Today, market research company NPD released their findings after surveying millions of iTunes users: we want to see iTunes moved to the cloud. About 25% of iTunes customers would be very interested in a paid-for streaming service that will allow them to access their content on any device. The number of those interested was nearly double when dangling a free service.
Between seven million and eight million iTunes users in the U.S. would have strong interest in one of the paid subscription options, according to the report. These consumers indicated a willingness to pay a minimum monthly fee of $10 — either for streaming music or access to their personal music libraries on multiple devices. NPD estimates that there are 50 million iTunes users in the U.S. According to NPD’s music industry research, a model that offers iTunes users free access to their own music libraries would attract in the range of 13 to 15 million subscribers.
If such a model supported multiple devices, NPD estimated that approximately 8 million iTunes supporters would be willing to pony up around ten bucks per month. As the firm points out, that’s a billion dollar market just in the first year alone. The market would explode growth-wise as more and more people begin to understand what “the Cloud” is.
At 25% of their userbase, Apple is looking at about 15 million people in the U.S. alone. Were they to capitalize on this, they could easily be raking in $80 million per month in revenue. The question is… will they jump at the chance any time soon? What are your thoughts?