Streaming Pricing Solid Outlook but Slowing Demand

The 20,000 Foot View:  Across a wide selection of Western countries, the streaming music and video subscription markets are reaching a high degree of maturity. As saturation for core products nears, further growth will depend upon factors such as pricing innovation and multiple subscriptions per household. This report uses new MIDiA consumer data to demonstrate the likely future adoption of music and video subscriptions, the impact of inflation on real-terms pricing and also a pricing elasticity model for music.

Key Insights

           of non-subscribing consumers are very likely to subscribe, translating to            of the addressable market remaining for near-term, likely adoption
• For longer-term                       of the addressable opportunity remains,            to more than            in Brazil            India
           of non-music subscribers are very likely to subscribe – which means that just            of the near-term addressable opportunity remains
• Growth in            could be challenging, with just            non-streamers very likely to pay
           of non-subscribers are very likely or somewhat likely to pay for a music subscription
• Strong physical            Germany and Japan rate among            lowest likelihood to pay, illustrating            challenge of converting physical buyers            digital 
• Music subscriptions            price inelastic

Companies and brands mentioned in this report:  Apple, Apple TV+ Amazon, Amazon Prime Video, Disney, Disney+, ESPN+, Hulu, Netflix