Reports Music

Next Steps For Telco Music The Revenue Or User Dilemma

Report by Mark Mulligan
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20,000 Foot View: Streaming’s early fortunes were intimately tied to telco music strategy, with the streaming services eager to piggy back telcos’ much larger marketing budgets and telcos equally keen to pursue marketplace differentiation and brand kudos. Telco music bundles are delivering more revenue and users than ever before but their relative role in the streaming economy has lessened. At the end of 2016 the picture has changed markedly. Like a marriage that has lost its spark, both parties value each other’s company but no longer cast each other covetous glances. But just as with a tired marriage, there are still good times and both parties would rather work out how to build a new relationship within the confines of their existing union rather than part ways. 

Key Findings

  • Apple Music            Spotify accounting for the majority            the growth in 2016 and            the total            million commercially active            at the end of 2016
  • The total            of active telco partnership (mobile            fixed line) grew from            in            to            in 2017
  • Europe is            leading region, accounting for            of            partnerships, with            while Asia is           
  • Deezer remains            leader in terms of partnerships                       from 2015) while Spotify grew                       to           
  •            of telco bundled subscribers are now aged under            compared to            of paid subscribers
  • A shift            shorter term telco bundles is            place that is causing discord            partners
  • Bundles remain            for emerging stage markets but            approaches and differentiated, telco-optimised offerings            needed in established markets

Companies and services mentioned in this report:            Anghami, Apple Music, Axiata, Deezer, Digi EE, KKBox, KPN, Medianet, MusicQubed, Napster, Netflix, Optus, SOCAN, Spark, Spotify, Telenor, Tidal 

NOTE: A full list of music telco partnerships and a telco revenue model are included in the excel spreadsheet posted alongside this report for Data Access subscribers.