Music Consumer Segmentation From Lagging Indicators To Leading Indicators

The 20,000 Foot View

Consumer music behaviour, tastes and attitudes vary dramatically.  The ability to delineate discrete segments is crucial for targeting music services and for artist marketing.  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 but is not always defined by consumers’ personal values and opinions.   

Key Findings

• Based on            music behaviour (spending and listening)            can be grouped into four            segments: Aficionados, Collectors, Forgotten Fans            the Passive Majority
• Music Aficionados            the heartbeat of recorded music            spending            every three months and                       hours a weekAficionados represent            of            music subscribers
• Forgotten Fans            the untapped opportunity, representing            of            consumers and with above average            time but below average spending 
• Behavioural segmentation            a lagging indicator, showing how            act currently. Attitudinal segmentation is            leading indicator, exposing what is            to happen
• When Aficionados            defined by their attitudes rather            behaviour they become the single            segment, representing            of all consumers