Buried in an article digging around the SpiralFrog collapse, CNET has some intriguing data supplied by an anonymous music industry exec. It claims that music purchases made by people who listen to three free music sources fell 44% from the first quarter of 2005 to the third quarter of 2008, while purchases made by people who listened to four sources falling 49% in the same period. Those free sources include radio and TV channels, though, as well as websites like YouTube, Imeem, MySpace and the rest. Those figures aren’t particularly surprising, but the fact that they’re being cited at all is a sign of the labels’ increasing concern that ad-supported music is cannibalising sales, rather than acting as a sampler.
More data on ad-funded music cannibalising sales
