Decoding the Digital Consumer An Analysis of the Digital Music Behaviour of UK Consumers

The 20,000 Foot View

           years after the launch of the iTunes Store and            years after the launch of Spotify, digital music remains a largely niche sector, with the notable exception of YouTube. Despite a decade of contraction the CD remains the most pervasive music product while radio is the dominant consumption platform. Subscriptions are making some headway but churn looks set to become an important part of the digital landscape.

Key Findings

• Radio and            still outshine all digital music            other than online music video
           years after the launch of the iTunes Store music download buyer penetration is just            though album purchasing is now just as widespread as single track buying
• Streaming adoption            still relatively niche and paid            stand at just            penetration
• Pricing, commitment            and trepidation all act as            to consumer adoption of subscription           
• The CD            reigns even for digital consumers,                       of digital music buyers and            music subscribers buying CDs at            monthly 
• Non-Network Piracy            replacing            as the music sharing            of Digital Natives, with Digital            still clinging to           
• A quarter            music subscribers are also pirates
• There is            music subscriber gender divide:            of            are male 
• Subscription service            is going to become a            component of the digital market:            the entire subscriber audience have            churned or plan to churn

Companies mentioned in this report: Apple iTunes Store, iPlayer, BBC, YouTube