A new study from Parks Associates suggests that online music subscriptions will need to drop below $10 per month in order to attract a significant number of consumers worldwide. Although, the results for the study are questionable when looked at from a more complete business perspective

The study finds that 41% of people with digital music players in the U.S. are not willing to pay more than $10 per month for listening to their favorite music. For comparable prices, 62% of people in the U.K. with digital music players, 49% in France, 52 % in Germany and 56% in China are also unwilling to pay more than the $10 level.

The study also finds that roughly one third of people owning digital music players in the five nations believe that music services should be free.

One part of the study that needs to be questions is the consideration for advertising from consumers. Of course, everyone wants everything for free, but that simply is not possible and has not historically been the case for the music industry. While The Technology Suits does not agree with the rigid attitude put forth by many in the music industry, we do believe that musicians should be compensated for their work, as should publishers/distributors/marketers – although this last group’s roles may be changing with the “digital age”.

Consumers often view there radio stations, basic TV and many online services as free, but it is not. These services, as is this site, are supported by advertising. While some portion of the audience will always change the channel/station or not click on advertisements, many will listen to, watch, buy the products or click the ads. Even with many pay services such as expanded (not premium) cable television, advertisements lower the costs.

In every study on standard radio, TV or paid content, consumers always answer that they want a lower price or unlikely to accept a pricing increase. If these results were true, the number of TV viewers would have declined years ago.

The price point of XM Satellite Radio and SIRIUS Satellite Radio is roughly $13, and both companies’ subscriber numbers continue to grow. This should not be significantly, if any, different for online music/radio.

Yahoo! may be changing the dynamic of the online music market with the company’s recently announced $60 annual subscription, but other online music company’s should not be so quick to lower their prices and limit their opportunity.