Using Econometrics to Model The Music Business 2004-2009

(Do the right thing: please credit when you link to this link) () Coinciding with EMI’s digital music investorn day (read story below), Dr. Jorge Padilla, Managing Director of LECG, a business analysis firm, released an econometric study of the music market and the digital opportunity, using data from EMI’s own digital music sales. The study was done in U.S. and seven EU countries to establish the link between adoption of digital technology and music consumption.

Some good financial analysis…according to the study, the online music market will have a CAGR (Compound Annual Growth Rate) of 39 percent over the next five years until 2009. Annual growth rate of online music: 2005: 104%; 2006: 52%; 2007: 50%; 2008: 35%; 2009: 14%.