Music Consumer Segmentation: From Lagging Indicators To Leading Indicators
This week we published our latest report: “Music Consumer Segmentation: From Lagging Indicators To Leading Indicators”. This report explores how music consumer segmentation needs a reboot for the streaming era.
Over the last half decade the music industry has come to understand importance of consumer segmentation in understanding music fans and buyers. But the streaming-driven shift from ownership to access is forcing a rethink in segmentation. Paying for music has become a lifestyle choice and is not always defined by consumers’ personal values and opinions.
Music consumer behaviour is changing at a more rapid rate than it has done at any stage in the digital era so far, with dramatic impact on revenues and business models. But consumers themselves are not changing so quickly. The underlying defining characteristics of consumers’ behaviours and attitudes take much longer to evolve, often shaped more by life stage shifts such as leaving home or starting a family. Technology is most often adopted because it taps latent demand that reflects the aspirations and needs of specific groups of consumers. In doing so it accentuates their characteristics rather than creating them, that is a longer-term process.
The shift to the consumption era creates need for new insights to understand transitioning consumers in an era that old and new worlds cohabit. Segmentation models need the same flexibility and sophistication to deliver the clarity of vision necessary to navigate the choppy waters of the transition era. It is a transition phase for insight as much as it is for content consumption.
Here are a few of the key findings from the report:
Music Aficionados are the heartbeat of recorded music revenues, spending $17.57 every three months and listening 15 hours a week
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Aficionados are only 17% of all consumers but represent 60% of all music subscribers
Forgotten Fans are the untapped opportunity, representing 30% of all consumers and with above average listening time but below average spending
Behavioural segmentation is a lagging indicator, showing how people act currently. Attitudinal segmentation is a leading indicator, exposing what is likely to happen
When Aficionados are defined by their attitudes rather than behaviour they become the single largest segment, representing 39% of all consumers
MIDiA Research clients can read the full report by following this link.
If you would like to learn more about MIDiA's research services and how to become a client click here or email info AT midiaresearch DOT COM
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