Streaming Pricing Solid Outlook but Slowing Demand

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

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