The Aficionado Impact How Super Fans Changing Spending Patterns Are Dragging Down Music Sales

The 20,000 Foot View

Total revenue growth in streaming heartland markets in 2012 and 2013 painted a strong picture for the streaming era.  But by 2014 much of that growth had transformed into decline. Neither trends provide definitive evidence for the case for streaming but both point to the wafer thin margins between growth and decline in the music market.  Consumer behaviour and business models are both under going a transition process of seismic proportions, spearheaded by the Music Aficionados.  These consumers have long been the beating heart of music revenues but the market is becoming ever more dependent upon them and their behaviour will increasingly determine the music revenue outlook.

Key Findings

• Music revenues            seven of the world’s most            music markets declined by            in           
• Streaming growth            not enough to offset the            impact of declining CD and            sales
• The changing            patterns of Music Aficionados were            to the revenue shift
• Music Aficionados            for just            of consumers but            all music spending
           of Aficionados stopped buying CDs in 2014 while            reduced download spending
• Aficionados were            for            of the total            million            revenue in 2014
• Streaming increased            revenue share from            to            but            extra revenue was still            million            than the combined lost revenue            CDs and downloads