The Rising Power of UGC
About this report
Audible Magic has commissioned MIDiA to produce a White Paper on the rising power of UGC and the untapped opportunity to monetise the growth in UGC consumer behaviours and new platforms. We will examine the growth of new platforms, use cases and ‘music and content put to purpose’. These new behaviours and the platforms that host them are reaching new demographics that previous licensing structures have yet to really monetise – in particular the under XXX demographic, where the penetration of streaming services is far lower.
The main focus of this report is on music, though we will dip into other content types and reference UGC trends in video and games, and potential developments in sports. We will look at how social media and UGC platforms do not respond to traditional licensing structures and how meanwhile, opportunities are missed. We will frame these trends within the disappointing performance of ad-funded models.
Advertising from Spotify and other on-demand audio streaming platforms made up just XXX of the total turnover XXX billion) of the global recorded business in 2019, with video-based advertising from YouTube and others contributing more at XXX Advertising revenue overall makes up XXX of music business revenues. With subscriptions peaking, this is an imbalance in terms of how music content is being monetised – something Spotify has been looking to address itself with its own substantial investment in ad technology and through the introduction of podcasts.
With the slowdown of streaming subscriptions, content owners might well ask “what’s next?”. But what's next is already here. Social media is the new music consumption; it just isn’t being fully monetised or utilised.
About Audible Magic
Audible Magic offers innovative solutions to identify content, manage rights, license content and monetise media. Audible Magic’s Emmy-winning automatic content recognition technology powers billions of transactions monthly for most major social media platforms and music distributors. The company has become a trusted intermediary and advisor to rights holders and platforms.
For more details visit: www.audiblemagic.com