The 20,000 Foot View

Midway through the streaming transition, consumer segmentation is more complex and nuanced than ever before. The traditional methods of segmenting by spending behaviour retain a core value, while those based on attitudes are most valuable for understanding streaming consumers. With both approaches though, the Music Aficionado emerges as the standout segment, invaluable to both the old and new recorded music industries.

Key Findings

• There are            macro approaches to music segmentation:            and attitudinal 
• Aficionados are            most engaged group of music            in both approaches to segmentation
           of behavioural Aficionados spend            or more a month on music compared to just            of attitudinal Aficionados 
• Behavioural Aficionado            grew from            in 2014 to            2016
• Music subscriptions            getting real traction among Aficionados,            to            in 2016 from            in           
• There is            Aficionado growth potential for subscriptions            the            price point will only            so far
• To drive            scale revenue growth, increased spending            to come from a wider            than just Aficionados, Forgotten Fans            particular