This IDC study presents a forecast and analysis of the U.S. paid music service provider (MSP) market. It includes user and revenue forecasts for IP-based pay-per-download services (such as Apple's iTunes Music Store and Musicmatch Downloads), IP-based subscription services (such as MSN Radio Plus, MusicNet@AOL, RealOne Rhapsody, and Yahoo!'s Launchcast Plus), and paid MSPs delivered over wireless networks. It also identifies and discusses factors driving or inhibiting the adoption of these services.

The first major section of this study is the Situation Overview, which describes the current state of the U.S. paid MSP market, trends that have affected it during the past 18 months, and the types of vendors that are entering the market. The next major section is the Future Outlook, which presents IDC's updated U.S. paid MSP users/subscribers and revenue forecast for 2004?2008 and lists key forecast assumptions.

"Pay-per-download and subscription paid MSPs are reaping the benefits of music industry support and growing broadband adoption to offer more music and better music services online. But free online music services and consumer confusion about usage restrictions and competing technologies are just a few of the issues that need to be addressed before the paid MSP market will be able to fully realize its potential." ? Susan Kevorkian, IDC senior research analyst, Consumer Markets: Audio