Introducing MIDiA's Streaming Music Health Check
We are pleased to announce the arrival of the following MIDiA report on our report store: 'Streaming Music Health Check: Streaming’s Watershed Moment'. You can purchase the report here. MIDiA Research subscription clients already have full access.
The report pulls together key metrics right across the streaming music market including subscriber numbers for different music services, major label revenues and consumer behaviour and demographics. It explores issues such as playlists replacing albums, subscriber growth, revenue growth, emergence of mid tier services, how mobile is changing consumption, pricing, churn, trials and exclusives.
Below are details of the report:
The 20,000 Foot View: Q2 2016 emerged as a watershed moment for streaming music, with label streaming revenue growing strongly enough to lift overall revenues for all three major labels. Meanwhile Spotify and Apple registered record growth, soon followed by streaming announcements from Amazon, Pandora and iHeart Media. 2016 was the year that streaming stepped up its game, but many of the long-term market challenges remain, such as commercial sustainability of the music subscription business model, concentration of growth and consumer willingness to pay. In this report, we pull together data from record labels, music services and consumers to create a definitive assessment of where the streaming music market has got to.
Key Findings (values have been removed from this preview)
- By September 2016, Spotify had X million subscribers (with $X billion paid to rights holders to date) while Apple had X million subscribers
- Competition is hotting up with announcements from Amazon, Pandora and Vevo
- Each of the three major labels experienced strong streaming year-on-year revenue growth in Q2 2016: Sony (X%), Universal (X%) and Warner (X%)
- In Q2 2016, major label download revenue fell by $X million quarter-on-quarter, only $X million less than the $X million by which streaming grew
- Paid subscribers rose globally from X million in Q2 2015 to X million in Q2 2016. However, Spotify and Apple accounted for most of the growth
- X% of all streams were mobile, rising to X% for Napster
- X% of UK subscribers and X% of UK free streamers regularly stream on Wi-Fi
- X% of all streams come from playlists. However, just X% come from push playlists
- X% of UK subscribers say that playlists are replacing albums for them, while X% say they are using curated playlists more than 6 months ago
- Just X% of Swedes spend more than $X on music, reflecting that subscriptions have capped spending of super fans
- X% of subscribers have changed subscription service, falling to just X% in Sweden thanks to Spotify loyalists
- X% of UK subscribers sign up to multiple streaming trials with different email addresses, while X% use free trials to get access to exclusive albums
Companies mentioned in this report: Alphabet, Amazon, Anghami, Apple, Beatport, Deezer, Google, iHeart, KKBox, Last.FM, MelOn, MP3.com, Napster, Orange, Pandora, QQ Music, Rdio, Sony Music, SoundCloud, Spotify, Tidal, Universal Music, Vevo, Warner Music, YouTube
Includes PDF, Slides, data set and synopsis infographic